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How To Make Money Through Renovation

  • August 29, 2019

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How To Make Money Through Renovation

One of the best ways to make money alongside your current job is by getting into the property market. There are several options you could explore, including buying to let out, which will earn you a steady income over time. Alternatively, you could go for quick profits, and buy to sell. 

With either of these routes, the best way of maximizing your profit potential is to buy a home at an auction. Very often, when a house is in a state of disrepair, there will be a risk that a buyers survey will deem a property unsuitable to take out a mortgage on. The only way that the house will sell will be to a cash buyer, and this usually means selling at huge discount at an auction.  However, if you have the means to buy the property in cash, you can save yourself a great deal of money. 

Get A Plan Of Action

You will still need to get a survey done for your own benefits though; this will let you know where your priorities lay in terms of restoration. You should prioritize the significant areas of concern that the surveyor's report brings to light. 

If you plan on adding square footage to the living space, either through an extension or in the form of an attic conversion, you will need to hire the services of an architect. Once you have some blueprints and any relevant planning permissions, you can set to work on getting the home into a habitable state. 

Set A Budget And Stick To It

Bring in the services of property managers who can tell you what your likely earning potential will be from home. This will let you know how much you should be aiming towards spending. You will obviously want to maximize your potential profits, so set a tight budget, and then stick to it religiously. 

You will need to factor a contingency within the budget of around fifteen to twenty per cent. Inevitably, something will not go to plan, or there will be some kind of unforeseen circumstance that you will need to contend with. Having a buffer in your kitty will make these hiccups more manageable. 

Hire The Services Of Professional Contractors

Unless you are a professional tradesperson yourself, you should try and hire in someone who works in that industry to get the job done. You may think that you can save yourself a lot of money by doing it all yourself; however, if you overestimate your abilities, you may find yourself getting stuck. If you need to bring in someone to rectify your mistake, then you will end up paying out much more than if you'd have hired them in the first place. 

Get some quotes, and seek out recommendations from friends and family. You will need to have someone trustworthy, and who will stick to the price and timeframes quoted. Don't be afraid to shop around to get the best deal and the most reliable contractor.