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?
Research, research, research.
We advise sticking to familiar local areas and starting with
simple renovations. 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
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.