Article written by John Smyth
Rugby has been an anomaly in the property market over the past few years. While average prices in the West Midlands have dipped, prices in Rugby have risen by 4.1% over the last year alone. Rental yields have followed. There has never been a better time to get yourself an investment property in the area. Below, we provide our three essential tips for renovating property in Rugby.
Be Aware of the Workload
This tip applies to property renovation anywhere. While television property shows have added to the glamour of fix-and-flip or rental investments, what they fail to show is the hours of hard work, financial risk and emotional strain inherent in property renovations.
Make sure you have plenty of time to deal with the renovation. Working on top of a full-time job is tough, so you may want to partner up with a friend, family member or business acquaintance. On top of this, make sure you have the budget to complete the renovation with at least a 10% contingency. Prices for materials are changing on an almost daily basis.
Finally, be aware of the emotional strain. The work required might take you away from family and friends for some time, and be physically tiring. If the property you are renovating has an emotional connection, such as an inheritance, or if you are planning on selling a house after divorce, then this can be exasperated. It may be more beneficial to get a cash offer from a company, that can guarantee a fast turnaround and let you get on with other business ventures.
Know the Demographic
The biggest demand for property in Rugby is with semi-detached homes. These are aimed at people in their mid-thirties who have just managed to save for a deposit. Family homes with around three bedrooms are their ideal match. Detached properties and terraced properties are also appealing. Flats and apartments have seen the least growth over the past five years, in terms of rental yield and value. It does not mean they are not worth the workload, but the demand is not as strong as it is for larger homes. This is worth keeping in mind if you plan to buy and sell quickly.
Do Your Research When Trying to Add Value
When working out your budget, make sure any additions you make will add value to the property. Many people believe that they are making attractive changes that will push up the value. However, some of the best increases can come in the least expected places.
The cheapest and most cost-effective method is to touch up the outside of the house. This can include the garden or fittings like front doors and windows. It also makes a house much more likely to sell, as people get a great view of it as they arrive. Other tactics include applying for planning permission if there is potential to expand, without doing the work itself.
Rugby is hot property, but it may not be that way forever, so move fast. Have a budget, plan in advance and be ready to work hard. Very soon, the reward will pay off.
