October 2008

Apparently, house prices are falling fast and work on some new housing estates has ground to a halt but with banks suddenly so reluctant to lend money, first time buyers are still priced out of the market. In spite of such unsettled times, those with a foot on the ladder need not be put off moving onwards and upwards. The key is to look for a long-term investment, like a renovation project.

When choosing a property to do up, you’ll only know if it’s a good deal by getting a quote from a builder for the work that needs doing and advice from a local estate agent who can tell you what other properties on the same street have sold for - subtract the cost of the renovation from the possible resale value and you’ll soon discover if it’s worthwhile getting involved.

A full structural survey is important, especially for old buildings. More expensive than a basic survey, it could still prove the cheaper option in the long run. What’s more, there are regulations regarding the renovation of listed buildings and what materials you can and can’t use. If you don’t have the choice that you thought you would, you may be forced to spend more than expected.

For those who have never renovated a property before, something in need of small scale repairs and modernising is the best bet. However, these can be few and far between and it can be tempting to take on a ruin because it’s cheaper and could make you a bigger profit. Be realistic about the jobs you can do yourself and the amount of help you’ll need from the professionals to avoid going over time and over budget.

When hiring workmen, you want them to work to agreed deadlines and do a job that you consider up to scratch. As a result, don’t keep on builders that are overpaid for what they do. You want to get the job done properly, so don’t leave anything out - it’s not worth the aggravation further down the line and could make the property harder to sell.

Depending on the state of the property, it might not be possible to live in it whilst the works are going on. If this is the case, costs will be up, which could put pressure on the schedule. Renovation projects can run over time, especially when managed by someone inexperienced. Draw up a plan and a budget before you begin, and you can go a long way to preventing unnecessary delays and costly over-runs.