Buying property is never a simple task. It is necessary to know a little about the real estate market, research and, mainly, negotiate. Questions about financing, ideal location, whether to purchase a house or an apartment are among the most common?
Another question that usually puts a “flea behind the ear” of the buyer is whether it is worth buying to renovate? For this reason, it is advisable to know the risks and peculiarities of this form of negotiation so as not to regret it later.
In this post, we present the main points for you to decide with confidence. Check out!
Measure the cost x benefit
The first question that the person should ask is: what is the purpose of the purchase? The answer to this question will define the relationship between the amount invested in the reform and the expected financial return.
If the buyer intends to sell the property in a short period of time, the renovation should be more superficial – just enough to enhance some characteristics of the property. Consequently, the amount spent should be less.
Now, if the intention is to move and call the new home purchase, a project that generates comfort and convenience for residents is always welcome. In this situation, the money invested will be greater, and the property’s appreciation may not be immediate.
The second step is to know, with the city hall, if there is any law that prevents the reform of the property. Knowing the legislation is essential so that the investment does not become a loss.
With the information obtained from the municipal agency, analyze the property. See the physical conditions in which he finds himself. Look for problems:
- in the electrical network;
- on the premises.
Study whether this property is worth the application. As a reference, know that it is worth buying to renovate if the market value of the property plus the costs of the work are less than 20% of the figure that the property can reach after the renovation is completed.
Hire an architect
A very important tip is to hire a specialized professional to manage the work. As much as there is an emotional relationship with the renovation, the architect has knowledge that will add value to the property.
It will, for example, be able to tell whether a particular wall will need to be demolished or whether a supporting beam is in good repair. Another point to consider is that flawed work demands a double service.
Work together with the specialist so that your financial planning is maintained and respected. Be careful not to spend more than necessary in certain areas and leave others unprotected.
Discover the advantages of buying to renovate
If you look closely at the real estate market’s preferences and demands, buying to retire can be a profitable business. Some advantages in this negotiation, in front of a new property or in the plant, are:
- lowest value;
It is important to note that very old properties require a major renovation, and the return is not usually high. Remember that these properties can also be listed by the Historical Heritage, which will make the project more expensive and more difficult.
Buying to retire can be a good deal – provided it is done with reason – and knowing the current situation in the real estate market is essential. To do this, make a realistic financial plan and control expenses so that your budget does not become a problem.
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