Renovating can be exciting and at times a stressful process for homeowners. Money spent on renovations can be a substantial hit to your savings. But that doesn’t have to be the case; planning ahead of time can improve how you budget your money and help you determine where you’ll see the highest return on investment.
Find out where you can add the most value to your home, Sainsbury’s Bank has created this handy calculator that estimates how much the home value will increase based on its worth and the renovation options.
For instance, a home worth the UK average (according to ONS) of £245,000 could see an increase of £24,500 with an investment of £5,000 leaving a profit of £19,500.
It’s worth doing your research and ensuring that you’re investing your money into the right place.
How to find a renovation opportunity
When looking for a renovation opportunity or fixer upper you will have to sift through properties on the market unfortunately there isn’t yet an easier way to do this. Have in mind the type of project you would like to work on whether that’s an extension, or completely reworking a property from the flooring to the roof. If you’re looking to undertake a big extension and increase the overall footprint of the property, it may be worth considering a bungalow or a property with a lot of land providing more flexibility.
But if you’re looking for something with a good structure but in need of a revamp inside, you may want to take a look at a three bed or four bed semi-detached property or a terrace.
When you have in mind what you’re looking for, take a look on property websites like Rightmove and Zoopla and see what your options are. You will need to consider how much you are looking to spend and how much investment it will require, budget is a major factor when considering a renovation.
Finding the right renovation
When you’re looking for your renovation, make sure you have considered the bigger picture.
- Location – You can change the property, but you can’t change the location. Is it suitable for your lifestyle, does it have the transportation links you need, are there good schools in the area?
- Restrictions – Before you purchase the property and embark on your renovation journey, check if the property is leasehold or freehold, and whether it has the potential for planning permission. Make sure you do some digging online and see if the property has ever been refused planning permission. Also having a look at other properties in the area should be able to give you a good indication, as to what is achievable.
Check the structure
Within the early stages, you should be able to look for indications of any potential issues with the property. It’s worth noting that you will need to pay a professional for a structural survey before you exchange.
- Damp – The main giveaway that the property has issues with damp are a mouldy smell, cold walls, wet walls, flaky plaster and watermarked walls or ceilings.
- Cracks – Keep an eye out for these.
- Roof – Find out what the roofing is made of.
- Japanese Knotweed – Also known by the following names Reynoutria japonica, Fallopia japonica, and Polygonum cuspidatum. Japanese Knotweed is a large species of herbaceous perennial plant which can cause damage to your property by growing through walls and even concrete. Typically, lenders won’t lend on a property affected unless there is a professional treatment plan in place with an insurance-backed guarantee. Due to the costs associated with treating Japanese Knotweed there can be an impact on value of the property. Having Japanese Knotweed on a property doesn’t have to be a deal breaker but you will need to be prepared beforehand.
A quick check like this should be able to indicate the structural condition of the property. If you intend on buying the property, we always recommend getting a survey conducted before you exchange.
Finding the right renovation property is a great opportunity to make additional money and put your own stamp on things.
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