There seems to be a great market in real estate. It can seem like people who buy homes and do them up are really well-off. This can be the case for some, but it is worth understanding exactly how they make their money before deciding whether it is something that you think will be right to do.
The very first thing that you have to do is to choose a property and buy it. This is not as easy as it sounds as financing the purchase of a property is not easy. Unless you have the cash you will need to get a mortgage to be able to afford it. If it is not your primary residence then you will need a special mortgage which will be more expensive than a conventional one. You are likely to need a higher deposit and pay a higher interest rate. Therefore you will need to consider how you will be able to afford this while the redevelopment work is going on. You may be able to afford it without a mortgage but make sure that you leave enough money to pay for the redevelopment work as if you need to borrow later, it could be difficult to find a lender.
There is also the added complication of knowing what property to choose. You will need to be sure that you choose one that can be done up within a decent budget and then be sold on to make you a profit. You will need to research house prices in the area, have a full survey and calculate the cost of the work and allow for the cost of the mortgage repayments that you will be paying while the work is going on. You will have many additional costs too such as solicitors, estate agent fees, insurance and council tax so you will need to allow for all of these.
You will need to think about how you want to redevelop the property. Consider whether you want the rooms to continue to have their original uses or whether you want to change the layout. Consider whether it would benefit from any extensions or conversions. To do this you will need to think about the people that are likely to buy the home and what sort of lifestyle they will lead. You also need to consider the costs and whether you think that you will get a good return on your investment. It could be worth talking to a local estate agent about what people look for in houses in that area to make sure that you are doing the right thing.
Reselling a property may not be as easy as you think. Once it is all done up, you will need to find a buyer prepared to pay a price that will cover all of your costs and make you a profit. It is not always easy to sell houses, even at the best of times but if the economy is slow or interest rates are high or it is hard to get a mortgage, then it could be hard to find a buyer. You will need to make sure that your property stands out above similar ones in the area to give it the best chance of selling.