For most people looking to buy a new home, it’s a case of finding one that matches their budget and specifications. However, there are those brave few who consider fixing up a rundown property. This can indeed represent an investment opportunity, but it requires a significant amount of work with no guarantee of a decent return on investment.
At Gentleman & A Van, we work with individuals and professionals who go this route. It’s a guestimate as to the chance of success, even for seasoned property developers. While this is always subjective and no two situations are the same, there are ways of increasing your chances of success. This article will examine both options to determine the best route.
Contents
- Renovating for Profit or Convenience that Costs
- Work with an Estate Agent and Create a Strategy
- Finding a Bargain at an Auction
- Counting the Cost and Seeking Quotes
- The Importance of Location Research
- A Range of Removals and Storage Services
- What to Look for in a Fixer-Upper Property
- Pros and Cons of Move-In Ready vs Fixer-Upper Homes
Renovating for Profit or Convenience that Costs
A note before we begin – there’s no such thing as an easy move. We certainly don’t consider buying a home to be a simple or straightforward process. There are lots of potential obstacles to navigate and issues to avoid. And it will take plenty of patience when organising and ticking items off your moving checklist, which you should create and update throughout your relocation.
The Meaning of ‘Convenient’ Purchase
The phrase convenient is a comparative reference between buying somewhere you can move in straight away versus a property you’ll work on for months. In simpler terms, the convenience of purchasing a property without having to undertake renovations before moving in. A liveable space from day one makes things a lot easier, but the process to get there is anything but simple.
Not Everyone Renovates for Profit
Not everyone buying a fixer-upper home is doing so for profit. Many people do so to create the ideal house or apartment to their exact style and taste. While others are struggling to get a mortgage, this is the best route to homeownership. There are numerous reasons, with house flipping being one of them.
This Blog Offers Unbiased Advice
This blog will consider various angles as we traverse the different options available. We’re doing our best to avoid bias and will remain objective and impartial. The idea isn’t to give you a definitive answer; instead, some pointers to help with your decision.
Work with an Estate Agent and Create a Strategy
We recommend that you take this step as your first action. You’ll put yourself in a favourable position by enlisting the services of an estate agent from the start. Draft a wish list with everything you want when setting up viewings. Then send it to the agent for them to provide feedback and suggest any relevant actions.
Data Helps You Decide Early
If you’re unsure of either option, they’ll present you with some data and advice for both. This will help you piece together enough information to determine which route is ultimately the best. However, they won’t make any decisions for you, and you’ll need to do some of the legwork. You’re not off the hook regarding research and scouting.
Agents Offer Expert Property Insights
One of the benefits of getting an estate agent early is their ability to value prospective properties. They can provide you with an accurate valuation of each house or flat, as well as a list of its pros and cons. Additionally, they’ll advise on matters such as inspections and the legal aspects. We can’t think of a more important person to have on board.
Viewing Shortlist Saves Time
Once you have a wish list, send it and get them to group suitable places for viewings. They’ll filter out unsuitable properties and do further research on potential ones. This is essential for anyone who’s moving into South West London from another part of the UK. You won’t waste time and energy on places that don’t match up to your needs.
Finding a Bargain at an Auction
Auction houses have regular lots with properties to develop, and this is the holy grail of finding a bargain. Every auctioneer has their own set-up and criteria for how they accept and present each item for bidding. The best way to get a better idea is to attend one in your local area, even if you’re just there as a spectator. Remember to keep your hands down; otherwise, they’ll think you’re actively taking part.
Read Catalogues and Viewings Carefully
Most auction houses will produce a catalogue with information for prospective bidders. Open viewings will also be an option you should undertake if they’re available. It’s not always possible to view, but you can ask for additional information. Familiarise yourself with terms such as guide and reserve prices, as well as the terms and conditions of sale.
Understand Legal Terms and Packs
Professional auction houses undertake extensive preparation work to facilitate the sales process. Legal packs may be available, and we encourage you to request them when you first contact them. You need to understand the terms and conditions of the auction and the property being auctioned. Furthermore, get to grips with the procedural stuff in the event your bid is successful.
Auctions Offer Experience and Insight
While the thought of an auction seems daunting, we believe it’s worth considering, even if it’s for research purposes. If you opt for a ready-made house or flat, at least you have this experience to draw on. You might even decide to try your hand at development in the future, and you’ll already know where to begin. Who knows, you might even have fun while doing it!
Counting the Cost and Seeking Quotes
Now that you have a better idea about the route to finding cheaper properties, let’s discuss the numbers side of things. We recommend investing in a good cup of coffee to stay awake during this stage. You’ll need to perform costing exercises for both approaches. This must include every aspect, and you’ll add and update your figures. You must pay attention to the small details to avoid problems later in the process.
Renovations Require Mortgage Planning
Applying for a mortgage is usually necessary, even for auctioned properties. You’ll need to calculate and draft something akin to a business plan, especially if you choose to renovate a building. The home loan provider will want to know your capacity and commitment. If you’re unable to satisfy them, you’re serious and can make repayments, and it’s unlikely they’ll back you financially.
Understand Affordability and Deposit Rules
You’ll need to consider deposits and affordability as your primary goals for people who aren’t making improvements. You’ll need to prove you have the financial clout to repay a mortgage at a competitive rate. The requirements are often stringent and far from inclusive. You must earn approximately three times the mortgage repayment amount.
Mortgage Access Remains a Challenge
The sad truth is that applying for and acquiring a mortgage is anything but straightforward. It’s very exclusive and doesn’t take things like being a good tenant into account. We hope this will change soon, and rental payments will become a qualifying factor for home loans. For now, get to know this side of things and see which lenders might be willing to accept smaller upfront payments.
The Importance of Location Research
We can’t stress this enough – it’s all about location, location, and location. The area you’re moving to is vitally important, especially for reselling purposes. It needs to tick a certain number of boxes, including style, property details, and the area’s quality. When compiling a list of potential locations, consider healthcare facilities, schools, transportation options, and local amenities.
Score Properties for Better Insight
It might be helpful to create a scoring system where every potential property and location receives a specific number of points for a particular task. For example, you might allocate a fixer-upper property in Wimbledon a six for the number of rooms, but the local amenities are superb, so it gets a nine. Then, a four-bed detached nearby has everything you want in a home, scoring nine, but there’s a lack of decent shops, and you’re not fond of the surrounding area.
Use Agents to Cross-Reference Details
This is where your estate agent comes in handy, as they’ll be able to use property descriptions against your wish list. They’ll research sales in areas with similar buildings to get an idea of asking prices. By doing this, you’ll get a better idea of return on investment and how appealing the vicinity is. Do your part by researching safety and employment statistics, as well as Ofsted ratings.
Choose an Area You’ll Enjoy
The most important thing to remember is that you will spend most of your time on the property. Whether that’s living there or working on the building, you’ll need to be sure it’s the right pick. Even for those developing the property to sell straight away, you’ll need to like the village, town or city. Otherwise, why would your potential buyer?
A Range of Removals and Storage Services
The Gentleman & A Van team have been moving people in South West London and all over the capital since 2004. And, as you can imagine, we’ve performed all manner of relocations in that time. Many of them fall into this blog’s category, with some working on properties to sell or call their own. Then some people considered it, but opted for the slightly more straightforward option.
Tailored Packages for Every Property
Regardless of what decision you make, we’ll go through the same stringent assessment process before suggesting a removals package. Irrespective of whether you’re moving from a two-bed apartment or a five-bed detached house, we begin by understanding your circumstances in full. For homes with three bedrooms or more, we typically recommend our home removals package. Anything below that, normally one- or two-bedroom apartments, tends to work better with our man and van service.
Flexible Storage and Packing Supplies
We offer storage options tailored to meet the precise needs of any individual or business, suitable for stays of any length. Gentleman & A Van also has our own online store, where you can purchase the same high-quality packing materials we use on every job. You can enjoy the same industry-level boxes and packaging that the professionals have without leaving the house.
What to Look for in a Fixer-Upper Property
From our decades of serving South West London (and the surrounding areas), we’re always looking for practical tips to help people make informed decisions. Buying a renovation property can be tricky as there’s an element of risk greater than that of ready-to-move-in homes. This checklist provides an overview of key considerations to keep in mind when searching for a suitable fixer-upper.
Fixer-Upper Checklist:
- Check structural integrity – cracks, damp, roofing, plumbing, and electrics.
- Get a full survey done – understand hidden costs before committing.
- Investigate planning permissions – know what’s allowed before designing changes.
- Estimate total renovation costs – including contingency for unexpected issues.
- Assess location potential by considering factors such as resale value, transportation links, schools, and local amenities.
- Factor in temporary living costs – you may need short-term accommodation or storage.
- Inspect for pests and invasive plants, such as woodworm or Japanese knotweed.
- Review access for building works – ensure there’s suitable space for skips, scaffolding, and materials.
- Check the listed status or conservation area rules – these can restrict your renovation options.
- Confirm utility connections – gas, electricity, and water supply may need upgrading or reconnecting.
- Talk to neighbours – gain local insights and potential warnings about the property or street.
- Speak to your mortgage provider early – some lenders are cautious with major refurbishments.
- Use sites like Trovit and Zoopla to see what fixer-upper properties are available to get an idea of price range and availability.
The Importance of Preparation
We can’t stress enough the importance of thorough preparation when entering the renovation property market. It could be the difference between landing a bargain with potential or a money pit that ruins your finances. Use the above checklist as a starting point and add notes as you tick off each point.
Pros and Cons of Move-In Ready vs Fixer-Upper Homes
We’ll conclude our blog with a comparison of property types for first-time buyers or investors. This provides an overview of the benefits and drawbacks of properties that require work versus those that are ready for you from the start. You can add more points that are relevant to your situation.
Cost Upfront Vs Long-Term Value:
- Move-in-ready homes often cost more initially.
- Fixer-uppers offer better ROI if done well.
- Renovation costs can spiral out of control without strict planning.
- Move-in ready means fewer surprise expenses.
Time and Lifestyle Impact:
- Move-in ready suits buyers who need to relocate quickly.
- Renovations can be time-consuming and stressful.
- Living on a building site may be unavoidable.
- Move-in-ready properties reduce disruption.
Personalisation Potential:
- Fixer-uppers let you fully customise your space.
- Move-in-ready homes may not match your style.
- Renovating allows a choice of materials and layout.
- Ready homes may require costly updates later.
Mortgage and Finance Access:
- Move-in-ready homes are easier to finance.
- Lenders may hesitate to lend on properties that require major work.
- Renovation finance requires detailed project planning.
- Bridging loans or staged funding might be necessary.
Create a Wish List
We recommend listing everything you need from a home, including the number of bedrooms, bathrooms, and other features. Afterwards, conduct initial research to determine whether your current budget allows you to find a move-in-ready property. If the answer is no, then the renovation market is your next option.
Gentleman & A Van – Reliable Advice for Homeowners in South West London
Everyone at Gentleman & A Van wants our customers to find the perfect home and enjoy a pleasant moving experience. You’re investing time as well as money, so you need to be sure it’s the correct choice for you. That’s why it’s a good idea to have credible information readily available, and we strive to produce and link to other reliable sources.
Once it’s time to move, we will be delighted to provide you with a high-quality service. We offer an excellent selection of removals package options. And should you need it, self storage to ensure you have a secure place for your belongings. Every service we offer has a high degree of flexibility to accommodate any unique aspects. We guarantee a high standard of quality for every package we offer.
Whether you choose to find a bargain to turn into a charming home or you’re going with something ready to move in, please contact us today. We’ll provide you with any assistance you need, including discussing a removals service with you.