If you have money to invest, purchasing a home to renovate and sell at a profit can be more lucrative than putting it into a savings account or buying shares if you know the real estate market. You should ask some questions, which will tell you whether the place is a worthwhile investment and how much work you will have to do.
How old is the home?
The year the home was built will not only tell you about the potential condition of the building but how modern some of the features are. Many newer homes will have energy-saving adaptions such as solar panels, or it will be easier to install these. Alternatively, older buildings might be priced lower, but there are always exceptions.
If you know what type of home you want to buy, Compass may be able to help you. They have listings you won’t find anywhere else, and as a reputable brokerage, they have been connecting home sellers with buyers since 2012. So, they can also help when you’ve finished the project and are ready to sell your home.
Ask about restrictions on extensions.
If you plan to add value to the home by building an extension or changing the building, you need to check if this will be possible before you buy it. Some buildings will have a body corporate services like strata management services by Strata Data, which means that you will need approval before renovating. Finding out later could mean scraping the main plans you have to make a profit.
Find out how much similar homes charge for rent.
If you plan on renting the home out, you will need to know how much similar homes charge for rent. This can be a starting point, and you can charge more if you make changes that make it stand out from other homes. It helps to have a comparison, so you can create a budget and realistically predict how much you might charge as a lessor to create a regular income for yourself.
Ask about previous problems.
Before signing anything, you need to know if the home has had any problems that could cost your renovation project more than you have budgeted for. This includes dampness and mold, an old and unreliable heating system, or an asbestos problem. If it does, but you still have your heart set on buying, you could negotiate a lower buying price to compensate for the extra money you will need. Alternatively, you might decide it is more work than you’re willing to commit to and try to find something more suitable.
Although not all homeowners are completely honest at this stage, you can learn what to look for yourself. For example, if there are damp problems, you might notice peeling wallpaper, an odd smell, mold on the walls, or stained walls.
It’s essential to uncover any problems with the home and any additional costs or limitations that could halt your project before purchasing it. Even if you’ve done a thorough check, it doesn’t hurt to review everything again.
