Are there still profits to be made on property purchase and refurbs?
Repolist’s Anthony Ayton shares his thoughts.
There are still profits to be made on property refurbishment but it’s not as easy as it once was and any potential property project will require expert timing, patience and lots of imagination. The best opportunities on the market right now – and as a result, some of the hardest properties to find – are houses with large gardens that, with a successful planning application, will allow a second property to be built on the plot.
When searching for properties, it’s also wise to look out for the ones that have the potential to add extra living spaces for minimal outlay. But before undertaking any work, do your research. Look at some of the biggest houses on the street – what is the ceiling price in that area? If you don’t find this out first you could potentially be taking on a refurbishment project that is doomed to failure. The bigger properties will set a price precedent, ignore it at your peril.
Converting commercial property to a residential conversion was once a popular option for investors looking to make a substantial profit. Post-Brexit the market has slowed down massively, particularly in London, with investors holding their breath to see what long-term affects the move out of the EU will have on the markets.
If you’re looking at land plots, what are the key points to consider? If the plot already has planning permission, is there an opportunity to amend or improve it? Which build density offers the highest return – houses or flats? Maximising potential before purchase means maximising profits in the long term, so think carefully about the best use of space and future returns.
From an investment point of view, would it be more profitable to sell the plot on for profit rather than build on it yourself? Many agents will have an in-house expert who will be able to give you a valuation for re-selling the plot compared to building on it.
If the plot doesn’t currently have planning permission, how does the local planning office feel about any potential future planning submissions? You don’t need to own a property or land plot to apply for planning permission and you are well within your rights to discuss any ideas with your local planning office first.
One thing’s for certain, the market outlook isn’t clear. But with a focussed investment plan and some shrewd thinking there are still potential profits to be made on property.
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