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  • Property-a-holics

    Best ways to add value to a property ... ?

    Let's come up with a comprehensive list!  Here are some obvious ones:

    1.  Add a loft conversion.

    2.  Add a conservatory.

    3.  Extend the property to create more bedrooms and living space.

    4.  Replace the kitchens and bathrooms.

    5.  Add some eco credentials.

    6.  Build a garage.

    7.  Build a home office over the garage or as a separate structure.

    8.  Replace the flooring.

    9.  Restore original features (if appropriate).

    10.  Replace the windows.

    What else can the tribe come up with?

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    Hi there One tip Pull up the carpets when viewing props to buy - when the estate agent is not looking TWICE I have done this during viewings in flats to discover that beneath the grubby and hideous swirled carpets there was beautiful original 1960s solid wood parquet flooring throughout worth £6-10K or more to install - stunning when cleaned and polished but the useless numpty estage agent had not thought to check and the vendor had not mentioned it... Good way to add value - spot things others have missed!

    Another time I bought a flat where the agent had not bothered to mention the fact that the garage that came with the property was 50% larger than normal - with electricity and automatic door - the only one in the block to have this as it turned out - in an area where parking is at a premium.

    Sometimes adding value is just opening your eyes... cheers Doug

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    Hi Rich I know, it is a bit of a basic point for a professional like you... But many buyers don't do simple things like lifting carpets - so the investor has an advantage over FTBs.

     It reminds me of an example in 2006 where I was at a viewing of a run-down property with 2 FTBs. They spent all of 30 seconds viewing the property before storming out the door with the remarks that the prop needed "a lot of work". How rude to the poor estate agent. Yes it did need work - but they did not think about the profit potential for the prop if renovated and improved in a top location.

    Now I own the flat - it is fully renovated and beautiful - and my ever grateful flatmate pays the mortgage for me on my 2nd home so it costs me nothing. Just pays to have that bit of vision...as I am sure you know.... cheers Doug

    Richard Greenland said:

    Doug I always lift the carpets! Apart from the good stuff it can reveal problems I need to know about. I’ve had similar experiences, I’ve bought houses with all of the things listed in my last post hidden underneath filthy old carpet.

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    Jo,
    Like Susanne I have no idea what a linhay is. I am guessing it is some sort of hay storage area attached to the barn.
    Ignoring the precise definition I am slightly confused by the question.
    You said a professional developer who is active in the specific market niche indicated that the value of the property could increase approximate 4-5 times what it would cost to complete the improvements. If the developer actually knows his business there seems to be plenty for a margin error and still make a profit.
    Second I would not focus too much on the idea that it is a granny annex. It could easily be the external office, a private living area for live-in staff or something similar. In other words the group of buyers might come from multiple niches all who want a distinct space for their own specific needs.
    I suspect the idea of selling to release the equity so the equity (after tax) can be deployed in a more efficient way will come out to be the best idea. It could make more sense to do the work before selling or it could be best to get all the approvals lined up and sell 'with planning permission' and a set of plans that help people to see what you are offering.
    John Corey
    Follow me on Twitter-> https://www.twitter.com/john_corey
    https://www.ChelseaPrivateEquity.com/blog
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    I agree with Richard above on capital improvements such as loft conversions , there are areas where the capital value will be increased as a result but many areas where cost of works is more than capital uplift - even in the South , personally I do them as the return on investment in terms of rental figures depending on strategy is normally above 15% annually and often 30%, so paying down the capital investment in several years. However the money may be better put to use on deposit money and leveraging up of further property purchase.
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    A great way to quickly and cheaply update a kitchen is to replace the cabinet doors, drawer fronts and worktops. You can even make your own doors from 18mm MDF and paint (or get someone else to paint them!) with a small sponge roller. Cheap as chips and looks professional. (Have the shop cut the MDF up for you to the exact sizes)
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    Steve,
    Great idea.
    You normally get better returns from the small projects that are mostly cosmetic. The bigger projects have limited scope to improve the value and are much more likely to suffer from delays, overruns and other unplanned problems.
    John Corey
    Follow me on Twitter-> https://www.twitter.com/john_corey
    https://www.ChelseaPrivateEquity.com/blog
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    I would also add roof terraces, if flats, especially in cities like London where outdoor space is prized very highly.
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    Kevin Boyd
    Property Developer & Coach
    "Helping you take your first step in property"
    www.UpwardSpiral.uk.com
    Jo,
    Adding more space does not always raise the value at the same price per square foot. A bad layout or something else can hurt the value. I have seen some developers who grow a room without considering how the increase actually makes the room less desirable.
    Test the possible value by checking for others in the area with a similar price. Will your place stack up in terms of features compared to the other properties?
    John Corey
    Follow me on Twitter-> https://www.twitter.com/john_corey
    https://www.ChelseaPrivateEquity.com/blog
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    I have a client who buys BMV, and sells on immediately with no work at all. (He is the chap I mentioned in another thread that seems to sell mostly to amateur developers who don't cost out the work required and selling price correctly!).

    He is quite an amusing character, and chuckls at all the property programmes where amateur developers develop a beautiful new property ... then are informed they have just lost £20k.

    It all boils down to 'making your profit when you buy'.

    I can;t speak from any real experience, as we only ever do the normal stuff ... re-wire, replaster, kitchen and bathroom replaced, tidy up exterior etc. Its actually quite boring. I do like watching the palaces that are created on Property Ladder et al ... but few seem to make money because they can't seem to cost works accurately, predict the selling price, or manage the schedule.

    There is good money to be earned from developing, but investors need to have the funds to survive the (inevitable) early mistakes.

    Stephen Fay ACA
    Tel: 01253 350 123
    Email: stephenfay@fyldetaxaccountants.co.uk
    Web: fyldetaxaccountants.co.uk

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    Stephen Fay FCA
    www.fyldetaxaccountants.co.uk
    'The Property Tax Specialists'
    My tuppance worth:
    - Change of use.
    - Offer to repaint your neighbour's door / wall / bay if in poor condition.
    - Refurbish / paint your own front door.
    - Extend lease / buy share of freehold.
    - Secure retrospective consent for flat roof to be used as terrace if possible.
    - Buy multiple properties in the same street and improve the streetscape.
    - If the house price is high enough to warrant it, solid wood floors, granite work surfaces, underfloor heating etc - i.e. the things most people look at and think if they are done well, so is everything else!
    - Do something no other property will have in the street. In Wales and Devon, we instal kitchens and floors we know no-one has.
    - Create storage space, pref built in wardrobes.
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