4 Big Renovations for Big Returns
Want to add value to an investment property? Thinking about ‘flipping’ a property? Here are some common ways to make money with big projects that offer large returns.
1. Lofty Ambitions
Does your property have a loft? If so, you could be sitting on a cash pot. Loft conversions can yield huge returns with both buy to let and renovate-to-sell projects. Planning permission isn’t needed if you’re only adding Velux windows, although adding a ‘dormer’ window is often the best way to increase the standing room in the conversion. That requires planning permission, but if it’s located at the back of the property then it’s unlikely that it will be challenged. Loft conversions are perfect for creating an extra bedroom which in turn increases the value of your property.
2. Gain through the Garden
Gardens can turn into gold mines if you find the right property. Chief amongst these are corner properties, where the garden is bordered by the road on one side. Or detached properties with enough space for a driveway to pass from the road to the back garden. If either of those properties has a garage at the end, even better. Both of these property types are ripe for making money by building an extra house in the back garden. The corner property is good because the road provides access, whilst the detached property would allow a separate driveway to be created going around the side to the new property. Garages are great because the existing structure makes planning permission more likely. Consult an architect before you buy if you find an interesting property- they’ll have the inside track on whether or not planning permission is possible.
3. Extend a property, extend its value
Put simply, indoors is worth more than outdoors. So if you’ve got a garden then extending into can pay big dividends. It’s normal to extend out to create a kitchen. Not only does this create a light and spacious kitchen where before there was probably a somewhat dark one, it also frees up extra space in a property which can be used as a living or dining room. Furthermore, in the ideal world you go all the way. That means, build a two storey extension. This will usually create a better kitchen and an extra bedroom. Seeming as most people spend most of their time in the kitchen, excepting sleeping, a well done extension boosts the appeal of a property hugely.
4. Divide and Conquer
Demand in the market at the moment is being driven by first time buyers, looking to get on the ladder for the first time. So one and two bedroom flats are at a premium. If you find yourself with a large property, possibly a detached or semi detached house, consider dividing the property into flats. They’re big projects but if you can find a trusty contractor then you can convert a six bedroom house which isn’t in demand into four or five flats that first time buyers will snap up. Configuring properties like this also gives you greater flexibility, as you can access equity by selling one or two flats as opposed to the whole property.