How can you evaluate a fixer-upper property in London?
Investing in a fixer-upper or a London home that you can renovate to either earn a good rental income, increase its sale value, or make it more liveable for your use is indeed a smart move. However, getting the job done is not as easy as envisioning the rewards that come with it. There are many pitfalls to navigate, and some of them are potential black holes that can significantly drain you of resources without yielding significant returns.
Whether you are a new homeowner looking to transform a rundown property into a timeless home for yourself, or an experienced investor or existing property owner, it’s essential to know what to expect. A property in need of renovation is likely to have a few off-putting visuals and may appear unappealing. However, if that’s the case, take it as a positive, as the seller is being honest and not concealing years of neglect behind new paint and fancy wallpapers.
Full-scale property renovations can be a considerable investment, and if you’re looking for ROI, these are a few critical checks you must do.
i. In-depth research
Always look beneath the surface when vetting a London home that requires renovation. You will get a limited time at the property, so knowing where to look is also important. Seeking professional help from renovation experts from the outset can help you obtain a fair estimate of the scope and cost of the required work.
ii. Defining Your “Red Lines”
Every property buyer has a few non-negotiable conditions – things like avoiding areas where crime has recently occurred or sticking to a specific budget. But when the going gets tough, it’s only natural to lose patience and go back on one’s own red lines. However, this can have long-term implications; therefore, it’s advisable to stick to your lines as much as possible.
iii. Building survey and budgeting
The reason we recommend getting a professional building survey or hiring a renovation expert early is to help you look into areas you might otherwise miss. Structural repairs are often costly and can be well-hidden by sellers. Backed by decades of experience and professional training, our experts can pinpoint exactly what needs fixing and provide a fair estimate of the total cost.
Maximising your renovation investment with InStyle Direct
Once you have an estimated cost of renovation, it becomes clearer what the road ahead will look like. Then, whether it’s navigating through planning permissions or deciding between the must-haves and nice-to-haves, InStyle can help you throughout the journey. When it comes to aspirations and vision for a property, the sky is the limit.
But that doesn’t mean you should go all out and spend every dime on renovations that may not bring in more value. The art of compromise and balancing aspirations with reality is crucial if you are looking to maximise value. While it isn’t advisable, sometimes you have no choice but to live in the same house that is undergoing renovations. At such times, our efficient process ensures clients have minimal disruptions.
Strategies for buying and negotiating your renovation property
Here are a few key factors to consider when negotiating a good deal for a property in need of renovation.
i. Understand the seller’s position
Checking in with the neighbours or inquiring with the estate agents about the seller and the reason for sale can reveal helpful insights. If it’s a distressed sale, where the existing owners are looking to sell quickly, you can negotiate a better deal.
ii. Negotiate based on survey findings
Detailed building surveys are likely to reveal structural or other physical defects that require extensive repairs and restorations. Use these findings effectively to negotiate the best deal on the offer price.
iii. Be ready to spend more
Renovations can incur significant overhead or unexpected expenses, and there’s always the risk of burning out your runway. Therefore, prioritise work accordingly and first tackle the necessary tasks, such as structural repairs, gas, central heating, plumbing, and electrical upgrades, as well as reception, kitchen, and bathroom refurbishments.
Building a solid foundation: Quality and community
Age plays a big role in the build quality and robustness of a property. The 1930s witnessed a renaissance in the quality of London homes, marked by advancements in insulation for cavity walls and solid brickwork. However, these modernisations still didn’t eliminate the period touches, such as decorative chimneys, alcoves, and attics.
Knocking on a stranger’s door to enquire about a property in the neighbourhood may seem odd, but it can be helpful. There’s always information and insights to be shared, such as parking issues, building or council restrictions or examples of damp and subsidence in the area that are good to know about.
The InStyle Direct difference: Your partner in London property transformations
At InStyle Direct, we have completed successful renovations for thousands of clients over the last two decades and continue to deliver excellent results for homeowners, investors and developers. From minor refurbishments to full-blown property transformations, stylish furniture packages, window dressings, and comprehensive interior design solutions are a complementary add-on to any structural work, and we take care of it all, all under one roof.
Whether it’s maximising rental value or preparing for a quick sale, our result-oriented services ensure the job gets done on time and within the agreed budget. The best part is that our clients need not even be physically present at the project site, as our experienced designers and project managers handle everything for remote overseas investors.
Conclusion
According to estate and lettings agents Benham and Reeves, there are over 36,000 unmodernised properties in England that are selling for discounts of up to 12%. If you’ve found a property that you can fix for a sure profit, it’s essential to get the right professional help for the task. Whether you need to book a consultation or obtain a fair quote for your property renovations, you can contact us at any time.
