Flipping properties to bank tens of thousands is an attractive prospect. But the truth is, it’s harder than it looks and it’s easy to fall into loss-making traps. Here we look at nine ways to maximise profit on a property development project.
- Buy smartNot all houses make good property development projects. It can take years of experience and a good insight into a local property market to know where the largest margins can be made. A good rule of thumb for first-time developers is to buy the worst house in the best street. That way, you know what sale price you’re aiming for and can more easily fix a budget.
- Get back to basicsOnce you’ve got the keys, it’s time to get cracking. By this point, a comprehensive survey should have revealed all you need to know about the property – warts and all. Investing in sorting out the fundamentals of a property, including the electrical wiring and central heating are likely to pay back even if they involve hefty initial outlays. Solving any damp issues immediately is a must. And if the property isn’t connected to the main sewage network, ensuring the property’s water treatment plant is up to current standards is an excellent place to start.
- Add an en-suiteConsider the layout of the property and what changes can be made quickly and easily without expensive architecture fees. Is there a large bedroom that can have an en suite incorporated? It’s one of the most efficient ways to improve a property and is highly likely to more than pay for itself.
- Add the features buyers are looking forBe mindful about what home buyers are looking for and what features sell a property fast. If it makes financial sense for your project, updating the kitchen and creating seamless indoor/outdoor spaces can make your property more marketable. Adding value with a new gravel driveway is a profit-boosting strategy used by property developer Canning-Ericsson on a luxury home development in Hurstpierpoint.
- Convert the loftWhile the value an extension can add can vary wildly by house and area, the general consensus is that loft conversions or converting other existing spaces such as garages, can add more profit than extensions. A smart option that property developers often secure is the planning permission for potential extensions – that way, buyers can develop them precisely to their specification. And you’ve saved them the hurdles of getting permissions.
- Consider energy-saving measuresMaking the property greener serves two purposes – it gives the buyer satisfaction that they’re doing their bit for the environment, and it reduces the running costs of a property. If the property windows need replacing, opting for glazing that maximises energy efficiency can be a smart decision. Simply adding loft insulation and fitting solar panels can have a significant impact too.
- Neutralise the decorThe superficial finish of a property counts for a lot. Freshen the paintwork with neutral colours – and resist the temptation to embrace current trends for darker hues and keep things light and bright. The aim is to appeal to as many buyers as possible by creating a blank (yet not sterile) canvas.
- Improve the kerb appealOften overlooked by first time developers – the outside impression of a home is vital. As well as a tidy garden and freshly painted exterior, a gravel driveway should be free of ruts and sparse patches. Value can be added by installing a gravel driveway properly so it’ll last, laying Gravelrings to keep the gravel in place and easy to maintain. When prospective buyers know the driveway has been fitted with a gravel grid system, they’ll understand that it overcomes issues commonly associated, such as gravel migration and rutting.
- Be sensibleMost profit can be made when money is spent smartly. Being prudent and realistic about the budget, as well as remembering that every property has a ceiling price, will stand developers in good stead to maximise their return. Swerving luxury features like home cinemas, wine cellars, tennis courts and swimming pools is a good idea too – these are expensive additions to incorporate, and developers aren’t likely to see them payback.
Achieve the perfect gravel driveway with the Beauxfort Gravelrings system. Check out our website www.beauxfort.com for more information about the Beauxfort landscape systems, design inspiration and to request a free sample, or talk to our friendly team about your project by contacting us on 0330 055 2599 or firstname.lastname@example.org.