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How To Spot A Money Pit

As one of the leading bridging loan brokers in the UK, we’re well versed in properties in need of serious refurbishment. As such, we broke down the key things to look at to make sure that you avoid a money pit!

Buying up and leasing property is considered one of the most sure-fire ways to make a profit these days but, as with any venture, there are risks involved.

With £68bn spent on renovations by residential property owners every year, it’s worth your while to put some legwork in to identify existing issues before they become your problem.

It’s easy to become enamoured with a building that has a lot of character without thinking through the potential issues you may face if you take the plunge.

It’s not just the upfront costs you need to worry about, with tens of thousands spent by many who realise after signing on the dotted line that their golden goose has become a money pit.

This doesn’t mean that with a bit of insight and a willingness to haggle with the seller you can’t bypass these issues entirely and end up with a great investment in hand.

This infographic gives you a guide to ensuring your next property purchase doesn’t leave you haemorrhaging cash.

THE KEY THINGS TO CHECK BEFORE BUYING A PROPERTY

Buying a property for refurbishment can be an exciting venture, but it can also be a costly one if you’re not careful. Before jumping in with both feet, it’s important to take a step back and thoroughly evaluate the property to reduce the risk of spending much more than planned. Here are some of the biggest things to check when embarking on a property refurbishment project:

First and foremost, check the condition of the property’s structure. This includes the foundation, roof, walls, and flooring. A thorough inspection can identify any major issues that could impact your refurbishment plans and budget. This step may seem tedious, but it’s crucial to avoid any costly surprises later on.

Secondly, assess the plumbing, electrical and heating systems. Faulty or outdated systems can lead to expensive repairs and replacements down the line. Take note of any issues, and consider hiring a professional to evaluate the systems if necessary.

Thirdly, consider the property’s location and its potential for resale value. Will the refurbishment bring the property up to the standard of the surrounding area, and is there a market for the type of property you’re planning to create? These factors can have a significant impact on the final cost of the project and its potential for profitability.

Finally, it’s important to have a solid plan in place before starting any refurbishment work. This means setting a realistic budget and timeline, and sticking to them as closely as possible. A detailed plan can help you identify any potential obstacles or issues before they become major problems.

By checking these key areas and creating a detailed plan, you can minimise the risk of overspending and ensure a successful property refurbishment project. So, get ready to roll up your sleeves and transform that property into the home of your dreams!

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How to spot a money pit