You know they are out there. The property bargains of tomorrow.You might have even passed them by, and cast an eye over the peeling paint and the overgrown garden. How do you know that a property is going to make you that all important profit? Or is getting involved going to be a long and painful relationship? One you wish you’d never started.
Put your feelings away
Let’s face it most of us buy a house because we like it. It strikes a chord with us. It pulls the heartstrings. The same thing cannot apply to an investment property. As much as we’d all love to save that lovely villa from ruin, it might just be the worst investment we ever make. Stay away from the heart. This is business. You don’t even have to like it. Even if you have to live in it for a while. This is a means to an end.
What you need to think about
Property Investment can be profitable. It’s just a question of maths. The developer’s rule goes something like this. Purchase price plus the cost of renovation plus 20% equals a project worth considering. Do the sums. If you are going to do the work yourself, go out there and price it up. And this is not just about the cost of materials. It is about the cost of your time as well. Factor it in, and be realistic. This is your wallet opening. These are your savings. And for a while it will be your problem.
Get the professionals involved
Unless you know the area back to front and upside down, and even if you do, get help. Sourcing and finding investment property is an art. Why not consider a buyers agent for property investment advice? These people know what they are talking about. They have done it all before and made it work.
Get down to work as soon as you can.
Ideally you are in that property before the ink has dried so to speak. Time is of the essence. Make a list of the things that need to be done and the things you would like to do. The garden can wait. Get your trades in and fix up any structural issues first.
Make sure you’ve got the right permissions and consents in place. If you are lucky and wise you won’t have taken on a property that needs major renovation. Clean up and get those basics in place. That includes the electrics and plumbing. Get receipts and warranties for all work you outsource. Upgrade light switches and plug sockets. Replace old lights with modern versions. This is a low cost area that makes a big visual difference.
Ensure the bathroom and kitchen are as presentable as you can. Buy new only where you need to. With the walls and ceilings all freshly painted, consider whether you can afford to get some bargain floor covering down. Ensure all windows and doors are functioning and clean and make your way outside.
With what is left of the budget start on the exterior of the house and the landscaping. Make sure the garage is clear and all rubbish is taken away. Clean up the garden and engage with some sensitive pruning and planting. Check drives and pathways and perhaps paint the exterior of the house. With a bit of luck and hard work you’ll be putting up a For Sale sign very soon and attaching a very different figure to it!