Choosing whether to purchase a renovation property as an investment project over a completed one is a common dilemma. Property investors with a developer background may have the skills, capability and the added benefit of a property renovation team whereas a hands-off investor may want to purchase a ready-made completed property ready to make a return on their investment from day one.
Investment in renovation properties
Most properties which are in need of renovation are found in a dilapidated state, require severe modernising and more often than not, crave substantial structural work which will require planning & building control approval. The benefit of a renovation property is that it’s often cheaper to acquire and if you have a qualified team to support you through the renovation properties project, it could prove to be a sound investment. However, simply doing the renovations work is often not enough for a property investor. Depending on the type of property; whether it’s a residential buy-to-let or a student HMO (house in multiple occupancy), as an investor and landlord, there are regulatory requirements such as DPC, Fensa, EPC & HMO licences to adhere to which can often prove difficult.
Completed investment properties
Purchasing a completed investment property instead of a renovation property also has its advantages and disadvantages. The main advantage is that you, the investor start to effectively make a return from day one – subject to the property being marketed and let quickly. There are also added benefits such as 12 month warranties and the ability to refinance the property. There are no void periods whilst waiting for renovations work to be completed and providing tenants can move straight in, it’s a simple solution for a hands-off property investor. Completed investment properties still have regulatory requirements to adhere to which is why it’s often appropriate to use a property management company. A property management company can ensure you’re up to speed with the latest rules and regulations to ensure you have satisfied the authorities, happy tenants and a healthy return on your investment.
If you would like to discuss renovations properties or evaluate which property investment opportunities are best suited to your needs, please take a look at our website www.mistoriagroup.com, or contact us on 0800 500 3015. Alternatively you can email our team at email@example.com and we’ll contact you as soon as possible.