5 Biggest Mistakes Amateur Property Developers Make

Written by Posted On Saturday, 28 November 2015 04:51

From lavish marble bathrooms to cheap wooden flooring, here we list a few of the main errors that amateur property savants make when attempting to turn a quick profit.

Many of us are tempted into the concept of investing in a house, doing it up fast, then selling it on while pocketing a sizable chunk of change. Nevertheless, it’s not nearly as simplistic as it may seem. And in fact, property renovation is fraught with traps whereby even in a very buoyant market you can lose your shirt.

 

Investing in the wrong area

A very basic error but one that is made by many, if not most. Prospective amateur property investors frequently believe that the area they are buying in will be the next up-and-coming area. As it turns out, perhaps it will be – in 50 years-time.

 

Paying costly finance rates

The wise philosophy is not to borrow any more than you can afford, irrespective how much return on investment you believe you’re going to make. Take your time to shop around so as to find the best possible deal. Be realistic about the cost of the full renovation project as well as the amount of time you’ll need from start to completion.

 

Being fleeced by the builder

The renovation project you’ve set your heart on is only ever going to be as good as the builder you hire. That said, be sure to scope their work prior to getting them onboard, and do ask for past client references. Get them to sign a fixed price contract since without this, if the build goes on for longer than expected, it’s easy to be ripped off.

 

Scrimping on quality

There are many cheaper versions of the oak flooring, the handmade tiles, and the composite work surfaces which are utilized in the priciest of developments, but you should avoid those. It may be tempting to buy the cheapest, but a potential buyer will instantly notice that you’ve cut corners.

So, even with a small budget, choose fixtures, fittings, and appliances that will last. And avoid scrimping on the exterior, given that most buyers make up their mind about a property even before they’ve entered the front door.

 

Going overboard

Another thing to avoid is spending too much. Believe it or not, but buyers are frequently put off by lavishness and a beautiful marble bathroom that comes replete with silk carpeting and crystal taps is not going to woo anyone. So instead, keep your feet firmly on the ground and focus on achieving a clean, fresh finish instead.

 

Renovating your home? Choose the best for home renovations in Brighton and Hove.

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