Advice To Novice Developers
With property prices booming in the U.K. many would-be developers are buying houses to renovate in the hope of making a quick profit. It is worth bearing in mind, however, that even the most experienced developers can find themselves under pressure and over budget. So, how can novice developers avoid these pitfalls and ensure their renovations are as stress free as possible?
"We advise sticking to familiar local areas and starting with simple renovations," says Jude Beautement, member of the National Association of Estate Agents (NAEA) and Joint Managing Director at Velo Estates.
You will have a much better idea of what will attract potential buyers in your local area rather than buying further out to save money on a cheaper property.
If you can control your costs you will maximise your profit margin. We find most people underestimate how much they will need to spend so we recommend adding on a 15% contingency budget to cover any unexpected costs. If you have little or no experience of building or renovation, one option is to buy a dated property and make superficial changes, such as redecorating, laying new carpets and floors or adding an up to date kitchen or bathroom. Whilst your profits might not be a big as you would hope for, this is a good way to feel more comfortable dealing with tradesmen and if anything does go wrong it will be easier to fix.
Once you start dealing with surveyors, planning officers and architects, there is much more that could go wrong and with potentially far more disastrous results.
If a house has been on the market for a long time, it may be that there is not much profit to be made so it will not deliver the return most people hope to make. Our advice is to research, research, research and start small. Move on to bigger projects as you grow in confidence."
