Buying a Property to Renovate
Many people may consider purchasing a property to renovate and then re-sell at a profit or rent out. If renting out then refurbishment will help increase the value of your investment but also help you achieved a better rent and should help reduce on the on-going maintenance costs once a tenant moves in.
Planning is key ! It is very easy to underestimate the cost of refurbishing a property so doing your research is vital. What is your target market and what will you realistically achieve in rent or by re-selling. What are the costs involved and what will the profit margin will be.
The main factor in the first instance is buying at the right price. If you pay too high a price then any profit margin will reduce and it will take longer for you to recoup your investment.