Searching for the right renovation project is a challenging task. There are many factors to consider – location, age, size, space, budget and potentially a return on investment. If you’re more risk averse, you may be looking at properties that need a complete overhaul, from structural changes through to cosmetics. Remember to wear a sturdy pair of safety shoes because these properties can be hazardous. If you’re looking for an easier project, you might be searching for a property in better shape where you can make more simple changes for a faster turnaround. Either way, what should you be considering if you’re viewing a potential renovation project?
Are there any dealbreakers?
Dealbreakers can be anything that would make taking on the property renovation not worth the hassle. These can range from serious structural concerns to neighbourhood issues or anything else that could get in the way of completing the project or making it financially viable. Some of these should be highlighted by a surveyor if you’re purchasing the property but finding out about these as early as possible is a good way to avoid wasting your time and money.
How long would renovations take?
You must also consider how long a potential renovation may take because this has other implications for finances as well as scheduling. If you’re looking for a quick turnaround then taking on too much work could leave you biting off more than you can chew. But if you have no time constraints then a longer-term project may be more viable for you.
How much work can you do yourself?
Property renovation is all about finding the balance between doing work yourself and outsourcing work to skilled labourers. This balance will shift depending on whether you are doing a renovation as a personal or business pursuit, but it’s important to consider nonetheless. If there’s less work you can do yourself then you will likely need a higher budget. If you can get away with doing more renovation yourself then you can save a lot of money but you will need more time to complete the work.
What would the end product look like?
It’s important to keep an eye on the end goal when looking to take on a renovation project. Will you be turning a house into flats or keeping it as one property? What options are available with the particular property that you’re viewing? Keeping an open mind is important and you could open doors that you never knew existed. Also, consider if there is a target market to aim for because this will determine how much you should be looking to invest and the standard of finish required.
Is there a profit to be made?
Finally, one of the more important questions to ask yourself is: is there a profit to be made? Unless you want to renovate a house to become your home, the financial standpoint is significant because it’s the end goal of many projects. Is the property listed at a value where money can be made after renovations? Have a look at the average prices for rent or sales in the local area and make a reasoned judgement.
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