Make money from a home renovation is not trivial. Here are some tips for making a good investment
More and more often we find in front of TV programs or even reality show on how to renovate the house and make some money. The fever rages of the housework, and many think that it can be a good way to conclude profitable sales on the housing market. In fact, the operation is more complex than it may seem. It just makes it as an investment in a few very specific cases.
"The real estate market today, it is very difficult for sellers. Who is really interested in buying a home is very motivated and has a clear idea about the type of apartment you want. " A house already restored has some disadvantages which make it unattractive on the market. First of all, "comes at a price higher than a standard conditions, ie the typical apartment inhabited by a family for 20-30 years and then put back on the market." Of course, the restructuring provides an added value. But it is very difficult to make it grow at the time of the sale. Purchasers may prefer to buy a house "used" in a lower price, giving himself a few years of time before giving way to the renovation (albeit at their own expense). A way as any to spread the cost of the house over a longer time, rather than having to load from the outset of a higher price for an apartment makeover.
Another factor that comes into play are the tastes and personal needs of buyers, which rarely coincide with the expectations of the seller. "Whoever buys, in general, has in mind the features you want and impute the costs to rearrange the apartment according to your needs. Suppose that the previous owner has renovated the building, providing it with three bedrooms, a single buyer rather, perhaps, have a single larger room. " But there are many other details that may clash with the tastes of the buyer: equipment, fixtures, home automation, flooring, and more. In short, one has in mind the house of their dreams and it is difficult to find one, even if just restored, which fits perfectly within all needs. In many cases, then, it is best to keep a low sale price, leaving the buyers responsibility of the restructuring.
But when that investment can be convenient? First of all, when you rent, either for residential and tourist areas such as in the large cities of art: to sell the apartment at the top end of the market for the area in which it is located, it must be in perfect condition and well furnished . Second, when you succeed in buying a property to renovate, in contexts of luxury at a price less than 60% compared to the market price. "Renovate old buildings, loft buildings, can become an investment only if you have a good profit margin. The maximum price at which you can resell is always to market. The average cost per square meter of the restructuring, for luxury properties, is about 1,000 Euros, and to this is added the cost of urbanization, prices for architects and other miscellaneous expenses that can amount to 500 euro. Assuming, therefore, to operate in an area of 7 thousand euro per square meter, the purchase price of the property to be restored should be less than € 4,500 per square meter. " Always paying attention to urban constraints that may limit the renovations.
Translated via software
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