As house prices continue to rise, property owners are showing more and more interest in properties that need a lot of work.
Buying run down properties can be extremely profitable in the long term, depending on the state of the housing market. And with property prices on the up, the average profit being made from home transformations ranges from £20,000 to £30,000, according to a study by Ocean Finance.
Of course buying a ‘wreck’ is always risky. Firstly, the buyer is always looking for the price of the property to increase whilst the work is being undertaken, so a stable housing market is always preferable.
Secondly, it is very easy for refurbishment costs to spiral out of control, so available funds and a detailed budget need to be put in place before work is undertaken.
It is thought that 1 in 10 British buyers purchasing properties are opting for a ‘doer-upper’ rather than properties is peak condition. Many of these buyers are developers looking to make a margin.
Jo Eccles of home finders Sourcing Property says that most of her buyers looking for unmodernised properties are “either end-users who want to make the space their own, or small-time developers who want to do the property up and squeeze a profit margin.”
Whether you’re a property developer, owner, manager or landlord, Arthur can help you manage your properties and any work being undertaken all in one place. The unique dashboard on the app brings all the components of property management together, meaning you have all the information you need at your fingertips.
Try out the free Arthur Demo today to see how Arthur can help you.