The New Investors Guide to Buying Properties for Renovation

According to investment statistics, the buy-to-let sector enjoyed double-digit growth over the last several years. More and more investors are becoming property developers, focusing on properties for renovation that can be purchased and then let out to tenants.

The advantage of this type of investment is that it provides a long-term return. Unlike buying homes and quickly selling a few months later, renting offers residual income that goes on year after year. Property investment is one that adds quite a bit of stability to an investment portfolio.

If you are thinking about buying and renovating homes for investment purposes, here is our quick guide to get you started. Be sure to do your homework before you begin investing.

Proper Planning

Because real estate is a long-term investment, it requires quite a bit of planning. You'll first need to sit down and figure out your current capital resources, how much you want to spend during your first couple of years, how you will cover financing needs, and what type of return you are hoping to get.

Putting these things down on paper will give you the perspective you need to move forward. Buying houses for renovation offers you great bargains and a potentially high-yield, but not if you do not have a plan in place ahead of time.

Consider Your Financing

If you have enough cash lying around to purchase several homes upfront, you are in a very good position. However, the majority of today's property investors do not have that kind of money. Most work normal jobs and have decided to invest in order to secure their financial futures. For them, mortgage lending is a requirement.

If you want the highest return on your investment, you need to shop around for financing. The first deal that comes your way is not necessarily going to be the best one. So just as you would for a traditional mortgage, compare interest rates and terms from five or six lenders.

Buy Your First Properties

With a plan and financing in place, it is time to purchase your first properties for renovation. Your best bet is to look for these properties using an experienced agency like Fruitful Property. This increases the chances that you will find the best properties available in the area you're looking.

If you are planning to purchase multiple properties in a short period of time, experts suggest you concentrate on one geographic location. As you gain experience, you will learn what a given area can sustain in rental payments as well as what it offers in terms of amenities.

Making Renovations

For many investors, starting the renovating process on their first property is an exciting time. Nevertheless, do not get carried away in your excitement. Keep your renovations within budget, make sure everything is done according to the law, and do not become emotionally attached to your properties. Remember this is a business.

Second, make your renovations with an eye on your future tenants. Imagine what it will be like to live in the house once it's complete. You want to make the house attractive, but you also want it to be efficient and functional.

When your renovations are complete, it's time to put your home on the market. Be selective in your tenants. The last thing you need is someone living in your house who is consistently late on rental payments and/or treats your property poorly.

Buying properties for renovation is a great investment opportunity that offers an excellent yield. If done correctly, it can provide you with income that will protect your financial future.

Buying properties for renovation is a great investment that offers an excellent yield. Done correctly, it can provide you with income that will protect your financial future.

Nick Hopkinson

by Nick Hopkinson - Property Investment commentator and Fruitful founding director.

ACT NOW
What Next

Most Read on 1st October

Avoid Investor Pitfalls When Buying Derelict Property for Sale
read more

The housing crisis has reinvigorated the real estate investment market as more and more investors are building portfolios through buy-to-let properties. Buying derelict houses offers a great return on investment in the long run. But only if investors avoid the pitfalls that come with the real estate business.

How Derelict Houses Can Spice Up Your Property Portfolio
read more

Establishing an investment portfolio is a wise idea if you want to secure your financial future. One way to really spice up your portfolio is to add derelict properties for sale. Purchasing said properties in order to turn around and rent them is now a very attractive option among UK investors.

The Real Costs of Investing in Renovation Properties
read more

Investing in renovation properties is about more than just purchasing a house and collecting the rent. To maximize the return on your investment requires that you understand all of the costs involved. Only when you have all the information can you realistically assess whether real estate investing is for you or not.

Rich Dad's Cashflow Quadrant

Rich Dad's Cashflow Quadrant

by Robert Kiyosaki

a compelling explanation of the core financial principles of behind being successful in work, business and investing.

Nick Hopkinson

Winning!

Winning!

by Sir Clive Woodward

exciting and practical insight into the business skills and sports psychology behind how England won the Rugby World cup in 2003.

Nick Hopkinson

The Art of the Deal

The Art of the Deal

by Donald Trump

like him or loath him, Trump shares his story and the drive that created a self-made billionaire, mainly from property.

Nick Hopkinson

FT Weekend Money supplement

FT Weekend Money supplement

essential weekly reading for UK investors wanting to know the best ways to invest and protect their money.

Nick Hopkinson

Renting Out Your property for DUMMIES

Renting Out Your property for DUMMIES

by Melanie Bien

straightforward advise and practical checklists for managing all aspects of your UK rental property.

Nick Hopkinson

Steve Jobs

Steve Jobs

by The Exclusive Biography

inspired stories and life lessons from the man who created Apple and then changed the world twice!

Nick Hopkinson

Winning

Winning

by Jack Welch

sage advice on business and leadership by the arguably the greatest business leader of the 20th Century.

Nick Hopkinson

Previous Next

“We (my family) have completed several investment property purchases through Fruitful, and have always found the team to be knowledgeable and friendly. We have been working with…

Martin Spare

“I have bought 4 investment properties through Fruitful starting in 2012. I am always looking for low hassle, low maintenance property investments that will get my money working…

Scott Wise
read more

got a quick question?

We're here to help! Just fill in the form below and we’ll get right back to you.

Access off-market, high yield investment properties.

Act now. Profit from a recovering UK property market.

Are your investments working as hard as possible?

Earn 15% annual return on your money with off-market bank repossessions.

Fruitful Property Investment
Intrigued call us now
+44 (0)20 7148 5858