Some of the lessons to be learned from this episode were...
Choosing A Property
Just because a house needs renovating doesn’t mean it’s a bargain – in fact because unwitting developers are often prepared to pay too much, many run down properties have become overpriced
It’s a mistake to think that a small development is an easy way to make money
It’s difficult to take an awkward outdated property into a successful well organised home
Creating Your Budget
The key to developing is realistic pricing. Make sure our budget for the development is based on reality – not fantasy
Aim for a 20% return. That way you should be safe if your costs go up, or if there’s a downturn in the market and your sale price comes down
Get quotes for any work. Your budget needs to be based on what the property will actually cost to develop – not how much you can afford to spend
When you’re assessing your target sale price don’t bank on property prices rising. They might not
Remember the national average sale price is just 94 percent of the asking price – so don’t take any notice of what similar properties are on the market for - you need to know what they sell for
The key to successful developing is deciding what will add value to your house and therefore where to spend your money
If you end up spending more than you planned this does not mean you can can simply up the asking price
Project Managers
Even thought they’re not cheap, project managers can be worth their weight in gold but only if you let them do their job
Expect to pay around ten percent of your building budget but they can save you money and time
They can take care of hiring contractors, checking references and monitoring all the works
They will help you set a realistic budget and schedule and will make sure you stay on track
It’s definitely worth considering one if your budget is over 40thousand pounds, you need a high end professional finish, your development is a long way from where you live of if your development simply won’t survive without one
Fireplaces
After kitchens and Bathrooms, fireplaces are the most important interior design statement a developer makes. But they don’t have to blow a huge hole in your budget
Even if you don’t have a chimney you can still have a fire. There are some really stylish electric fires, natural gas burners or gel fires which can save you thousands of pounds on installation and venting charges
