6. Work Out Your Budget
6. Work Out Your Budget (Image 6 of 10)
If you are going to make any money (which is the whole point), you need to come up with a realistic budget and stick to it. It is up to you to itemise the work you want to do and price up each job realistically. Before you put in an offer, get an idea from a builder as to what your planned renovations might cost (don't forget to add a contingency fund of 20 per cent).
Your list of costings should take you through every last detail, from planning and building control fees, major structural alterations, to new bathrooms or kitchens (price this up based on the suite or units you want to buy, rather than allocating a random sum), decoration, garden landscaping and furniture hire for when you come to stage your property for sale.
When you get the survey through, take note of what it says needs to be done, get a costing on how much any extra work will cost (even though you will have spent money at this point on solicitors and search fees, you can still pull out if the survey has too many unpleasant surprises) and build this into your budget.
Spend Or Save?
Make sure you have what the market demands. Ask estate agents what buyers want and, more importantly, what they will pay for. Fancy features, such as glass staircases, for example, will not recoup their cost.
SPEND on getting the property structurally sound. You can't just cover up problems - the buyer's survey will spot them.
SPEND on getting professional design advice from an architect for ideas on how to get the most from your space - unless you're working on a very straightforward project.
SPEND on kitchen worktops. If the market demands granite, don't try to get away with laminate. If you've saved on carcasses and doors, you can afford to spend a bit more on the tops.
SAVE on kitchens and bathrooms. You can now get affordable designer ranges, so there's no need to blow the budget, whatever market you are targeting.
SAVE on appliances. Even budget ranges come in stainless steel. Choose midrange products, German technology if you're marketing a high-end product, and don't be tempted to include built-in appliances, such as coffee machines, unless you are going to live in the property.
SAVE on flooring. Midrange carpet in a neutral shade is fine unless you're marketing a trendy loft warehouse, where you might want wood. Vinyl or tiles are great for kitchens and bathrooms, but don't get carried away with limestone - there are plenty of excellent ceramic or porcelain copies.
The views represented in this article are those of the author and not of Channel 4. The purpose of the article is to provide general information only and does not constitute financial, investment, legal or other advice.You should not rely on any information provided in this article and you should always seek out independent professional advice relevant to your own particular circumstances.
