Bricks and mortar have always been a reliable long term investment for those looking to grow their wealth. At the very least, for many the act of buying a property, sitting on it, then selling it in the future has produced good results, to really maximise on those investments there is so much more you can be doing.
Place the property in the hands of a letting company
The rental market in the UK is worth over £65 billion, and the average monthly rental price for private rentals across the country is £868 – though this will vary greatly according to the geographical location of the property.
Placing your property in the hands of a letting agent will ensure that you have a regular income that will cover the costs of owning the property – these might include mortgage and interest payments, service fees, repairs, utilities and local taxes. If you purchase the property through a mortgage, make sure that you have a Buy to Let mortgage, otherwise you may be considered in breach of contract.
Add value through renovations and refurbishment
There are a number of improvements you can carry out that will add value to the property.
- Basement conversion: Typically about 20% can be added to the value of your property by converting either your basement, or your loft space. Because you are adding another room – or rooms – you are effectively increasing the living space of the property as a whole, possibly turning a two or three bed house into a three or four bed house, or adding extra living accommodation. This makes your property that much more attractive to potential buyers (and increases the monthly rental value too).
- Garden rooms: since the pandemic, home owners who have not had the internal space available to make working from home more comfortable have turned to their outside spaces. Installing a garden room up to about 30 square metres will not need building regulations (providing it does not include sleeping accommodation) but could add one and a half times it cost to the value of your property. So if you spend £20,000 on a good quality garden room, you might recoup £30,000 on the overall value of your property.
- Interior design: you don’t have to go overboard with interior design – in fact often less is more when it comes to showcasing your property. However, ensuring that your interior is fresh, modern, uncluttered and clean. Sprucing up the interior of your property is a good, low cost way of maintaining the value of your property.
- New kitchen(ish): A kitchen is an area where you don’t have to spend too much money, but it could add a healthy amount to the overall value. Keeping the carcass, but renewing cupboard doors and the worksurfaces may only cost a couple of thousands pounds, but it could add £10,000 to the bottom line. Be clever and canny with how and where you spend your money.
Apply for planning permission
If you have found the perfect ‘doer upper’ but really don’t want to have the hassle of doing all the work, you could apply for planning permission and then flip the property with all the planning paperwork in place. There are plenty of potential buyers and investors who do have the energy and passion to complete the physical works, but don’t want the hassle of the paperwork. Selling a property with planning permission in place gives the buyer the reassurance that their potential plans are valid and ready to go as soon as the contracts are exchanged and the sale completed.