The secret of buying an older or run-down property and improving the bricks and mortar with the intention to sell, is not to over-renovate or get carried away with the décor (you won’t be living there, after all). Potential buyers may appreciate all the expensive new additions but they won’t be prepared to pay for them if it puts the house above market value. Nine times out of ten in order to sell the house or apartment, the new developer ends up reducing the price and in turn, their own profit.
The renovation property should also be a good price to buy in the first place – one which can afford plenty of capital growth. It’s also essential to ensure you have the money and time to do the property up in the first place. Many first time renovators continue to work full-time at their day job, meaning the renovation takes far longer than expected –as well as the mortgage payments. But on the whole, if done well and to timetable, flipping properties that you’ve renovated can be an excellent means of making lots of money in a short time period.
