Without doubt one of our favourite investment models. If you are considering buying to refurb, you then have two options. After refurb, either sell for a profit or keep and rent out as part of your portfolio. The secret to success is acquiring at the right price and then ensure you have a team to refurb at budget. We always recommend you have a survey regardless of what you know. What you cannot see, can certainly cost you.
From the outset, always use comparable evidence. Be sure to conduct a survey and prepare detailed quotes. The trades people you employ, are they readily available? An empty property can cost you money. Do you require planning permission or building regulations, is your gas fitter ‘gas safe’ registered, your electrician NIC EIC registered, your window fitter FENSA registered and so on. What will be the realistic time frame to completion (approx. 8-12 weeks typically). Do you have the funds to buy and refurb or do you require a loan or bridging finance. Once complete, if you are selling, have you appointed a good local estate agent…
If you keep the property, you have probably created equity after refurb. When modernised, you will secure good tenants at market rent. Potentially you have the best house on the street. The opportunity to install the latest kitchen, bathroom and designs will be popular with tenants as well as the new décor and flooring. Always consider tax implications before selling. Remember, the day you buy is the day you make money, not the day you sell.
This is one of our fortes!