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Master The Art Of Finding The Perfect Fixer Upper

If you’re tempted to make a foray into the fixer-upper market, the chances are that you’re looking for a way to see a return on a short-term investment. If you’re looking to flip a property by purchasing a dwelling that needs complete renovation, carrying out the works and then selling on at a substantial profit, you’re not alone. Many novice property developers are attempting to break into the market as a sideline. If you have a chunky nest egg in your account and you are looking for a way of seeing a more lucrative return on your savings, the world of bricks and mortar could be just the investment sphere you are looking for.

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Location

The old adage of location, location, location has never been more appropriate than when you are looking at investment properties. When looking for a house for sale, you need to locate the worst building on the best street. Purchasing on a road full of well-manicured properties will give your potential buyers greater confidence in your humble abode. Purchasing a house that has seen better days on this street means you can maximise your return. You can always change a property, but you can never change the location.

Many people choose to take a risk and purchase in an ‘up and coming’ area. However, there is no way to be sure that this area will ever reach the dizzying heights of being appealing. If it doesn’t, you could be left with a money pit of a property.

 

Budget

It’s vital that you don’t allow your heart to rule your head when it comes to property. You aren’t purchasing a home for yourself, and you need to have your business head screwed on. This is an investment, so it’s vital that you appeal to the widest possible market. It’s vital that you budget for everything that you will encounter during the buying process. This includes stamp duty, solicitors fees, search fees, the property price, the cost of renovations and possible capital gains tax. You need to make the numbers stack up. If there is no profit margin, you must walk away.

If you do take the plunge, spend your money wisely. Kitchens and bathrooms sell homes, people crave space, and a blank canvas is always more appealing than a highly personalised approach to decor. Just because you love that bright pink roll top bath, the chances are that your potential buyers will not. Ensure that you maintain a spreadsheet, keep your receipts and use high quality tradespeople to carry out the works that you can’t do yourself.

Investing in bricks and mortar can be a great option if you have surplus funds and you can afford to plough some of your savings down a different avenue. Have a go with a small property and see if you can turn a profit. By following this advice, you will maximise your chances of success, and you could find yourself with a burgeoning new career.