We’ve all been drawn in to the TV programmes about property development and watched something go from uninhabitable to something we all dream of owning. But have you ever been tempted to give it a go?
All those wonderful before and after shots make it look so easy. From our snug sofas, we criticise their design decisions, mock their progress and vocalise how we would do it differently.
But how many of us really appreciate either the potential problems or the potentially life-changing benefits of renovating a home either to live in ourselves or to rent out?
If you are thinking of purchasing property in Preston mitigate the risk of your dream rental renovation becoming a nightmare with these tips.
Know your market
Before investing in any property, it's important to do your research and understand the local market. This means understanding the demand for different types of properties in different areas, remember Preston is a vast city, as well as the current trends in the property market. Speak to local letting agents for their advice.
Have a strong team
Property development and renovation can be a complex process that involves many different stakeholders, including architects, contractors, lenders, and more. Having a strong team of professionals around you who can help navigate the various stages of the development/renovation process is essential. Preston is full of well established businesses and consultants to provide you with the support you need.
Property development/renovation can be an expensive undertaking, and securing financing is often one of the biggest challenges for new developers. It's important to have a solid business plan in place that can demonstrate the viability of your project. Seek professional financial advice before agreeing to anything.
Pay attention to planning
Obtaining planning permission can be a lengthy and complex process, but it's essential for any large property development/renovation project. Make sure you understand the local planning regulations and work closely with architects and planning consultants to ensure that your project meets all the necessary requirements. Preston has many conservation areas where planning will be required even for the simplest of jobs like changing property windows so do get in touch with the planning department.
Focus on quality
In the competitive world of property development/renovation, quality is essential. Make sure you focus on delivering high-quality projects that will stand the test of time and appeal to renters. Preston is really on the up and competition is high, you need to stand out.
Property development/renovation is inherently risky, and there are many factors that can affect the success of your project. Make sure you have a thorough risk management plan in place that takes into account factors like market fluctuations, contractor delays, and unforeseen expenses. We are all aware of how supply costs have risen since the pandemic. Always have a contingency fund.
Frequently diverting from or changing your plan will cost you time and money so try to stick to it. The longer the renovations go on the more money you lose in potential rent. The longer you have to pay your mortgage or utility bills for the property, the more they eat into your profit.
Property development/investment is a long-term game, and success often requires patience and persistence. Don't expect overnight success, and be prepared to work hard and stay focused on your goals.
If you manage to complete all of those then congratulations, you will be able to reap the rewards of your endeavour.
If you are looking for a buy-to-let property to renovate in Preston, Leyland or Chorley please give us a call on 01772 284606 to find out how we can help you to find a tenant and manage your property once renovations are complete.