Buying up and leasing property is seen as one of the best ways to build up your assets and, in the process, make a tidy profit. However, as with any venture, there are many risks involved when it comes to flipping homes.
£68bn is spent on renovations by UK residential property owners every year. These are carried out for both for structural and aesthetic reasons, but the annual figure puts into perspective the costs associated with property development.
It’s worth your while to put some legwork in to identify any existing or potential issues before they become your problem further into the project. This can include getting in-depth surveys carried out or having a checklist of questions for the current owner – if they’re unable to answer any of them, it may be a red flag.
Also, be aware that it’s not just the upfront costs you need to worry about, with tens of thousands spent by many who realize after completing the purchase that their cash cow has become a money pit.
While it can be very easy to fall into a building that has a lot of character – it’s essential that you consider all aspects of your purchase. Beyond the renovation itself, there are other factors such as the desirability of the area and the potential resale value that will affect your overall profits.
This doesn’t mean that with a bit of insight and a willingness to negotiate with the seller you can’t dodge these problems and end up with a great investment in hand.
This infographic, courtesy of ABC Finance Ltd., offers some top tips to bear in mind if you want to make the most out of a residential property investment. Read on to find out ‘How to Spot a Money Pit’…