To secure the best financial return on a property development project, you need to know where to spend money to the best advantage. This will vary by area and type of property, but there are some standard features and aspects that should be addressed regardless. These include ensuring the plumbing and electricity are up to scratch, making sure that the kitchen is desirable, creating an optimum layout, and considering the exterior as much as the interior. But there are many items and features that are both unnecessary and can eat into profits. Here we outline the common traps that property developers can fall into.
Adding personal touches
When it comes to property development it is best to listen to your head over your heart. Adding niche elements that you personally find attractive may not appeal to your target market and can turn out to be an unwanted item they then have to maintain. For example, in the premium market, tennis courts and cavernous wine cellars may sound wonderful but are not universally appealing. Money spent on them could be spent better elsewhere.
While it can be tempting to finish a property to personal taste, it’s an easy pitfall to succumb to if you assume everyone’s taste is the same as your own. Resist splashing out on lavish or conspicuous decor. Instead, aim for a neutral and complementary palette of around three or four colours throughout the home. It avoids creating a sterile feel, yet allows potential buyers to see the property as a blank canvas that’s not completely void of character.
Overcramming the layout
Adding extra bedrooms or dividing open-plan living areas to create new and well-defined spaces can be a wise move. Other times, it overcrams the layout. What’s appropriate will depend on the neighbourhood and the type of house. Adding another bedroom may add value, adding two may not. Only good and thorough market research will reveal what’s right for your investment. If creating new rooms detracts too much from existing rooms by stealing space, flexibility or light, it can turn out to be a poor decision, blowing a hole in your budget without increasing value. They could also make the property harder to sell.
First-time developers may be tempted to buy the cheapest of everything. After all, every penny saved is a penny more profit, right? Wrong. Low-quality fixtures and fittings don’t fool buyers. That goes for everything, from windows to flooring, bathrooms to kitchens. Instead, aim for good quality products that will last and suit the house you’re developing and the market you’re targeting.
Overspending on high-end fixtures isn’t always necessary either. While luxury finishes may be appropriate when developing a premium home, understanding your target market is essential to avoid blowing the budget unnecessarily. While your head may be turned by ultra-premium countertops and designer wallpaper that you’d choose for your own home, making sensible choices about extravagant finishes and being realistic as to whether these maximise profit on your development project, defines professionals from amateurs.
Depending on the property, ‘dressing’ the property ready for sale may be necessary. This includes furnishing it in a way that helps prospective buyers picture how furniture can be optimally laid out so they can imagine themselves living there. If you’ve developed a premium home, filling it with cheap furnishings that don’t suit the property can negatively impact its saleability and prove an unwanted distraction to viewers. While temporary furnishings can seem like a waste of money, it should be considered a necessary marketing cost. You could also investigate hiring furniture or buying wisely so that it can be stored and used again on future projects.
A cheap, poorly laid driveway
It’s well known that a home’s exterior adds to its value. Kerb appeal is essential – after all, some buyers rule out a house before they’ve even stepped foot inside. If the outside of a property is an after-thought that’s done on the cheap, it’ll look that way to prospective buyers. A poorly laid driveway, or one that does not complement the property, will immediately detract from the property’s appeal, and prospective buyers will recognise that they’ll have to shell out to improve it, as well as endure the inconvenience. Laying a gravel driveway as part of the development project can be an excellent and economical solution for all types of properties. And when installed with a Beauxfort Gravelrings grid system, it’ll have a low maintenance and long-lasting finish that the new owners will thank you for.
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.