Don’t over refurbish your buy-to-let property!

Don’t over refurbish your buy-to-let property!

This is a common mistake that inexperienced investors make and it’s something that you should guard against at all costs. When you purchase a buy-to-let property that needs some work doing then it’s easy to get swept up in the excitement of it all and try and do it up to a high standard – the kind of standard you would like if you were living in it. And there’s the rub….you’re not going to be living in it!

You would have thought that with all the various home improvement programmes on the TV that warn against this that people would take heed but despite this, investors, and usually inexperienced investors, get carried away with the process, blow their budget and don’t have a close enough eye on what their target audience needs.

Check out this article about some of the dos and dont’s http://www.thisismoney.co.uk/money/mortgageshome/article-2762152/Lets-set-let-The-buy-let-market-never-tempting-heres-invest-wisely.html

Keep an eye on the rental ceiling

Blowing your budget on unnecessary improvements is a property investment crime. Savvy investors know this and keep the money they save by focusing it on their next project which is clearly the sensible thing to do. One of the big issues is understanding the rental ceiling for the property that you have bought. By doing your homework on the area and whatever properties sell for in the locality, you should develop a good understanding of what your property could sell or rent for. In light of this, there’s little point on spending a fortune on a high-spec kitchen or bathroom if that isn’t going to make a significant difference to the price you can command.

Do your research

Doing your research is an essential element of any property investment you want to make. By understanding the rental ceiling and measuring that against your budget, it is prudent only to carry out the home improvements that are necessary. At the end of the day most tenants, when viewing a property, will look for somewhere that is well presented and clean. Therefore, sometimes it’s just a case of doing a bit of decorating rather than stripping out kitchens and bathrooms.

By examining the buy-to-let market effectively you will be able to identify those properties that don’t need a huge amount of work but can still deliver a good rental yield. Shrewd investors know that it is often better to achieve a lower rent rather than spending months on end refurbishing a property, getting no rent in and having to cover the mortgage. Save your money and put it towards the next opportunity. That way you will grow your property portfolio quicker.