Property, in the grand scheme of things, is one of the most stable and profitable investments you can make. Houses will always be in high demand, and the rate of property value growth typically outstrips the rate of inflation, allowing you to grow your value passively.
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But the last few years have been relatively volatile in the property market. Property values increased significantly over the coronavirus pandemic, before Liz Truss and Kwasi Kwarteng’s disastrous ‘mini-budget’ caused mortgage rates to skyrocket – and caused experts to predict a significant drop in house prices in the coming years.
This does not change the inherent stability of property investment, but the short-term knocks might be hard to swallow for the new investor. However, if you’re willing to get a little more hands-on with your property management, there are ways to extricate maximum profits even during a potential crash: property development.
Property development, colloquially known as ‘house flipping’, is the practice of buying houses with the intention of selling them on for profit. Alongside passive price increases, active investment in renovation can significantly increase the value of any given property; property development can be a lucrative way to make the property market work for you, whether as a side hobby or full-time career. But what are the better methods of profit-making home renovation?
The most impactful way to add value to any domestic property is by adding to it, in the form of an extension. Extensions can be single- or two-storey, with the latter allowing you to add an additional bedroom as well as expanding downstairs living space. Extensions can add tens of thousands in value, but are also expensive and time-consuming projects to undertake. Loft conversions are a less expensive alternative, but one that does not increase value as effectively.
Landscaping and Landscape Architecture
While many property developers focus on the interior of a property, the state of the exterior can have a profound impact not only on property value, but also on first impressions and offers made. A general overhaul can serve to neaten outdoor space and add value, but there are some specific changes that buyers will value.
For example, a tall boundary fence can add crucial privacy, which might make family buyers more comfortable. The addition of an outhouse, while more expensive, can be another way to add intrigue and utility to your garden – and add usable space to the property overall, whether as a summer room or separate office space.
Lastly, the kitchen is a central part of any home’s identity. While a kitchen renovation does not objectively add value to a property (unless new integrated appliances are built-in), an updated, sleek kitchen look can work wonders for impressions of the home – and for the size of the average offer received on said home.