Are you looking for your first home, or maybe you are looking to move to a new area or need more space. There are so many factors to take into account when you begin a property hunt, from your budget to the location to the size and style of the home. In addition to this, you need to think about what level of work, if any, you will be prepared to undertake to get the home of your dreams. You should find that being happy to take on some work widens your search as you might find that you can then afford a home in your ideal location or you can buy a bigger house than your budget ordinarily allows for. If this does appeal to you, then here are our 4 tips for taking on a project property.
Be honest with yourself
Sometimes our heart strings can pull at us when we see a home in the perfect spot that we can afford, if we don’t mind carrying out some renovations. The problem is, we can get carried away with the dream home and fail to think through the realities of what we will need to do to get to that stage.
You do need to be honest with yourself about the amount of work that you are prepared to take on and the amount of chaos that you are comfortable living in.
Cost it up comprehensively
If you have decided that you are happy to take the project on, you will need to ensure that you cost it up comprehensively. Everything needs to come in within your original budget so before you press ahead and make any offers on the property, get the professionals in to help you to run those numbers.
It is worth gathering a range of quotes from contractors so that you get a good sense of the likely costs. Take everything into account, from architect’s fees to strip out contractors costs to building quotes. You then need to think about the design, styling and furniture and these can be easy to underestimate.
Be thorough and list out everything that you are going to need to spend money on to get this house looking like your home.
Run through it with your mortgage advisor
You need to be confident that the numbers you are looking at do work for you. You need to know that you can borrow the amount that you want and you will want an understanding of how much this is going to cost you to pay it back.
Be prepared to take advice from your lender as they will have had experience of seeing projects like this, and they may well be able to shed some light onto the local property market if you are new to it.
Budgeting is key
You will need to be really on top of keeping track of your finances when you are taking on a project like this, budgeting is key.
You have run all of the numbers, so now you need to make sure that you stick to those figures and log and monitor every single spend. If you can see spends starting to rack up, you will need to take stock and look at where you might be able to make cuts in other parts of the project.
You should also remember that most homes have a ceiling price.
*this is a collaborative post*