Property Refurbishment: What to Look For

One of the most popular property investment strategies is to buy run-down properties, do them up, and sell them at a profit. It is a popular strategy because it works—but you need to know how to buy the right properties at the right price.

If you want to use a refurbishing strategy, choose properties with cosmetic issues that can be corrected with paint, redecorating, and minor repairs. Avoid properties with major structural, planning, or engineering problems. The main types of properties a refurbishment investor should consider include:

• Properties that have not kept pace with fashion or trends. Look for out-of-date décor and designs that no longer reflect changing lifestyles and consumer demand.
• Properties built between 1880 and 1980. Victorian- and Edwardian-era houses are reputed to be solid and sturdy, but usually need updating. The same applies to properties built in the second half of the twentieth century, up until about 1980. More recently-built properties are not likely to need much updating work, although you may find some that have been neglected.
• Properties conventionally built with standard materials, such as brick and slate or tile roofs. Odd roofs and unusual materials may create refurbishing problems that will eat into your profits.
• Properties that could be lived in without any work—but just! A totally uninhabitable property is not a refurbishment, it is a complete renovation. A property that is not particularly pleasant but still safe is a cosmetic refurbishment that has potential for you.
• Properties that do not fit with their surroundings. Consider a run-down property in an area of well-kept homes, a large property in an area of smaller ones, or a house surrounded by flats. Look for properties that you can bring up to standard for the area or convert to something that will fit the local environment.

Back to Investment Articles