Is Renovation the Key to Maximizing Profits on Buy to Let Properties?

Is Renovation the Key to Maximizing Profits on Buy to Let Properties?
  • Opening Intro -

    Being a small nation in terms of land mass, there is only so much real estate which is suitable for residential use in the UK.

    As a result, there always seems to be a shortage of homes and apartments for rent, in cities as well as in rural settings.

-------------------------------------

New real estate investors are looking to capitalize on this market and so they snatch up buy to let properties in the hopes of getting a decent return on their investments.

However, that isn’t always easy to do for a number of reasons, the biggest being the renovations and repairs necessary to make that property habitable. This, if any, is a time when investors should first consult with a conveyancing solicitor to ensure they are making a wise investment.

Renovations Might Not Be Your Biggest Concern

While you might be led to believe that a property you are interested in only needs a few minor repairs, and perhaps renovations to outdated plumbing or heating systems, those might be the least of your concerns. The first thing you should do before wasting valuable time crunching numbers to see if you will get a decent ROI after renovations is to see if the title and deed are free and clear. A conveyancing solicitor will be the best person to advise you in this regards. Once that is settled, it’s time to look at some numbers.

Cost vs Returns on Your Investment

Since you are looking for a property that you will be letting out for ongoing income, the one thing you may want to consider before making any major renovations is the length of time it will take to see a positive return on your investment. Not only will you need the purchase price or down payment on a buy to let property, but you will need the funds to make any and all repairs necessary to get that property fit to be dwelt in.

Some renovations will obviously be more costly than others. A conveyancing solicitor may be able to help you understand all that is involved from a financial perspective, and at the very least recommend an accountancy that can assist you in making crucial calculations prior to buying that property.

Who Makes the Renovations?

There are laws governing what must be done when buying and selling properties in the UK and so it is imperative that you understand who exactly is responsible for any renovations which are absolutely necessary. Even ‘as is’ clauses are sometimes not held up in the courts, so a conveyancing solicitor would need to be involved in the contract from the very onset – even before making an offer if at all possible.

If renovations are cost-effective and/or absolutely necessary prior to letting out that residence, then by all means that is what you should do to maximise your ROI. The key to successful real estate investment is to seek the highest price on the smallest investment. That’s a general rule of thumb within any industry, but in real estate, investments can add up to more than you can hope to realise in profits for a very long time. Seek a conveyancing solicitor for advice and this may never be an issue.

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

directory photos forms guide

Helpful article? Leave us a quick comment below.
And please share this article within your social networks.

facebook google+ pinterest
Categories: General News

About Author

LetsRenovate Admin

From the administrative staff at LetsRenovate.com. We hope you enjoy this article and the elements of the site. Please forward any suggestions or comments regarding the posting or other suggestions for improvement. We also operate other helpful guides in education, money, travel, and business. Visit our main site for address information. Thank you. Please share this site with friends and family.