If you’ve set your hearts on a place to renovate and sell on, it’s in yours and your families interest to ensure the following 8 points are discussed before committing to purchase.
You must research the area, the value of the properties surrounding the house you wish to buy, and the average cost of materials and labor for renovating the property to establish the potential profit you are likely to make remodeling a particular residence. Furthermore, you need to consider the expenses incurred when purchasing the home (lawyers fees, insurance etc.) and the mortgage payments you would have paid for the months you owned the property to devise an accurate return on investment.
Think about whether the house you are looking to buy is within reasonable driving distance of your family home. The closer the second house is the better, as this will help you to save on an excessive amount of time traveling to and from the property to renovate. This is particularly important when you have a family and full-time jobs to tend to.
Can you comfortably afford the mortgage on a second house without sacrificing your current quality of life? It’s paramount to consider your money situation to avoid the risk of pushing you and your family into debt over owning and running a second home alongside your own.
Establish before purchasing the house, if you have enough time and resources to renovate the home within a scheduled period. Creating a time frame is essential to work towards to save the task dragging on for much longer than needed. House flipping that lacks structure can prove to be quite costly. Focusing on the objective to reach an end date for completing the renovation is essential to work towards in your bid to sell and make a profit.
Decide who will be responsible for what jobs in the new property by brainstorming your expertise. By using your own skills to renovate the home, you can save money during remodeling. However, to repair critical damage on a property, such as roofing, damp and mold or to remove asbestos from the attic (usually found in older houses) it’s advised you contact the experts. For example, worn and missing roof tiles will require a roofing replacement and repair contractor.
Consider whether it may be wise to move into the property while you are renovating, to save time on traveling and prevent you and your family being apart from one another which can 0 apply an unnecessary amount of strain on your relationship with your family.
Alternative options should be in place in case the home doesn’t sell following the renovation. For instance, this could mean; renting the property until the value increases, seeking expert advice to raise the property value, or sell the property and suffer the financial losses.
Touching on the steps above will help you and your family establish whether you can comfortably fit renovating another property into your lifestyle, the likelihood of generating a profit on a new home and whether you’re passionate enough to see it through to fruition.