Property Ladder Extras Interview With Sarah Beeny

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3. Some essential tips for renovating (Image 3 of 6)

What would be your top tips to people who were thinking of buying to renovate at the moment?
Sarah: I would ensure that your figures do not stretch you too far. Fortunately banks are not as eager to throw money around as they were, so its more difficult to end up with a debt you are totally unable to support. It's absolutely imperative to remember that interest rates will not stay at 0.5 per cent forever and your plans should be able to cope with far higher rates. Remember they sat at above 10 per cent for a considerable time less than a couple of decades ago.

Do you think it's better to renovate and let out or sell on? Or is it very much area/region/property type dependent?
Sarah: It very much depends on the property and where it is - it then depends on you and what you are looking for out of the whole project - letting property is not as easy as it may seem. Remember to consider vacant periods, maintenance, and the tax that will be due.

If you can't rely on a rising market, what should be the basic rules of thumb when you are looking for a property to profit from?
Sarah: You should never have relied on a rising market - figures should stack up at today's levels and if the market rises than that makes your figures better - if the market drops your profit margin will be eaten into but you will hopefully still not end up losing money.

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