When it comes to investing, there are many options, including investing in the real estate sector, which is always in constant movement and evolution. Acquiring properties to renovate them and then sell them is one of the investments that continues to gain the most followers, as it is one of the safest and most profitable, however, you have to be very methodical to be able to carry out this type of investment. The homes that are acquired as an investment aim to be sold for a higher price than they were purchased, for which it is necessary to add “value” to the home. If you know how to add that value to the home, buy, renovate and sell, it will surely be one of the most advantageous investments you can make right now.
What should be taken into account when launching an investment like this? We are going to break down the keys in this article, but we can tell you that surrounding yourself with a team of professionals who can guide you in the process of buying, renovating and selling is a winning bet.
Is it worth buying flats to renovate and sell?
The objective when buying a home to renovate and then sell is always to pay the lowest price at the time of purchase and have the expectation of being able to sell it at its highest price to maximize the profit. Although it is one of the most well-known and profitable investments, before buying, refurbishing and selling, you must take into account certain fundamental considerations beforehand, look for a good booming area or study its possible future demand, among other aspects.
What do you need to consider before buying, refurbishing and selling?
The Spanish real estate stock is on average 45 years old, which makes it perfect when it comes to finding a wide range of old homes, which have enough potential to be attractive when carrying out an operation such as buying, renovating and selling. Some of these properties have prices below market prices, so they are a viable option to carry out this investment, although it is always essential to check the condition of the property. Doing a preliminary study like the one done with any home that is acquired is also essential. The location, the quality of the building, the availability of basic services or the proximity of the transport system must be evaluated. But, above all, it is necessary to assess not only the amount of the purchase, but also the remodeling and comprehensive reform project that the home will need, the key point of the entire value contribution operation. Depending on the state of the property, one investment or another will have to be made in the renovation. From Kaleidoscope we recommend visiting the property with an architect or renovation professional who knows how to appreciate its real state and what its possibilities are.
The cost of the renovation
When you are going to buy a home to renovate and sell, you have to go beyond the aesthetic aspect and the distribution of it. Knowing if it has breakdowns in the electrical or water system, in the structure, dampness, etc., in addition to its structural condition, is essential so that this purchase does not become your worst nightmare or, simply, the excessive renovation does not allow you to obtain the expected profitability. As we mentioned before, surrounding yourself with a group of people who can advise you is vital. An architect, a builder and an interior designer will become your best friends. Of course, you can always count on a company that brings all these aspects together like Kaleidoscope. The success you can have in buying, renovating and selling a house depends a lot on the work that is done at this stage, so you can’t gamble in this regard so that your investment is profitable and comes to fruition.
Third step: sell
Once you have everything clear thanks to the help of the team of professionals who advise you, you just have to let them get down to work. The time may vary depending on the work to be done, (if you did it with Kaleidoscope it would be about 4 months). At Kaleidoscope we are committed to having your comprehensive renovation in that time interval, no matter what. Once the work that will make your investment in a completely new apartment shine is finished, the operation of buying, renovating and selling will be coming to an end. Having made the house look like a brand new one will lead you to your goal of getting greater returns from this investment. This is achieved thanks to the renovation and the renovation team that turns an inhospitable place into a modern, functional house with its own style. In certain cases, if you are very clear about the buyer’s profile, you can even generate spaces or include small details in the renovation that will make the potential buyer feel, at all times, that this has to be their home. Just after the renovation and without occupying the property, it is time to put it up for sale for a greater amount than you invested in its purchase and renovation. This way the transaction of buying, renovating and selling is successfully completed. If you want to know how much your home renovation would cost, you can do so with our free renovation cost tool Kaleidoscope
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