Do you want to renovate properties to climb the ladder? Have you ever wondered how people sell their homes for a big profit? Ok, so I’m not a property developer nor do I have many properties behind me however of the four I’ve purchased three have been renovations (the full history of my property ladder climb is on the Property Journey blog). Two previous homes I purposely committed to because I knew they could be flipped. This is a term used amongst property developers to describe properties that could be purchased, renovated, and sold for a tidy profit. For many it’s their profession and livelihood, for others it’s a way to climb the property ladder and that’s the case for me (however I wasn’t as quick at flipping as the developers). Modest climbs of course, but nonetheless in eleven years my equity and investment has grown. It’s a bit cringe to talk about money but how can I share what I know, and my personal story of buying to renovate without doing so? I’ll do my best to be polite and please know I’m squeezing my butt cheeks! Oh, and disclaimer, always speak to a financial advisor…I am not one of those!

Hope Cottage was my second property and followed a new build. Now this wasn’t a major renovation as I’ve explained in my Property Journey blog but it did include new windows, roof, and render. Without these improvements it wouldn’t have been as warm and damp free but there wasn’t any knocking down or rebuilding to do, not unless you count an old out house. However, I knew that if I made these improvements, it would be more desirable when reselling as lots of buyers are put off by the need for new windows and a new roof as they estimate them to be costly. They’re right but it didn’t frighten me. Internally it was re-decorated, had a new bathroom, a new carpet to one bedroom and a replacement worktop in the kitchen. I priced up, very roughly, the cost of these improvements before I made my offer and did some research into comparable prices in the area. I felt confident I would return what I’d spend plus a small profit. I put down a 15% deposit, keeping a little pot of savings and adding to it each pay day, it was difficult on one income but through lots of number crunching I came out the other side three years later with a healthy return to use on my next property.

The cottage had lots of things going for it that helped make this possible, firstly location. I sacrificed a drive, garage, third bedroom and more when I purchased the cottage, but I had moved into a desirable area. Positioned walking distance from rolling hills, pubs, coffee shops and the train station made it a suitable home for first time buyers, down sizers and working professionals so I had a wide market available when it came to selling. Secondly it was south facing, do not take the position of your property lightly, it makes a huge difference to how you will live in the house and the garden. Thirdly, it had character in abundance which wasn’t impossible to get in the area, but it was rarer than the mostly 70’s-built homes. The high ceilings, big skirtings, wood burning fire and a couple of fireplace beams all contributed to the appeal and ensured this cute cottage sold within 36 hours of going on the market.

The plan for the bungalow that followed was changeable, I was going to flip, then I was going to stay, then I became ‘we’ and Cornwall called. More of that in this blog. This was a 70’s-built property in the same area, it had so many positive selling points: it was detached, had a drive, was on a quiet road whilst still being walking distance from the previous local amenities. I’d experienced first-hand how important light was and this property was south facing (another box ticked) and it needed everything doing to it which was exactly what I was looking for. I’d used Rightmove as a past time to search out renovated homes in the area and look back at their price history to work out a rough idea on a possible return. I almost made a spreadsheet. When taking on a bigger project you must be mindful of the ceiling limit, will you spend more than you can return? When you plan to stay in the house long term this isn’t as much of a concern, but if it’s not forever, you have to be aware of this risk.

After doing my research and calculations and having failed to secure anything else against the fifty plus people also looking locally, I had an offer accepted and started designing a new bungalow. Knowing the area and the demographic helped, it could have been a great bungalow to extend up but remaining a bungalow in the area could be more valuable, so that's what I did. I had to be so careful with the finances, especially as I was doing this myself (obviously not physically). Once plans to extend had been approved by the council, I started collecting quotes for everything that needed doing, I had a great builder who was very detailed in his quotation which was invaluable when balancing the outgoings. Throughout I learnt several money saving methods when renovating but I’ll save that for another blog. I started with a pot of savings then just before the builders came on site, I took out a loan of £25,000 which was frightening but I had great advice from both my mortgage advisor (Alison at Property Link Homes) and bank (always seek advice from experts). I knew that if I had the money to get the work done, I would be able to make a transformation that made the bungalow firstly more suitable to my lifestyle as I was planning to stay at this point, but it would make a drastic change that would also make it very sellable. By the time it came to fitting the kitchen, one of the biggest expenses, we knew the house would be going on the market, for some this could have been an opportunity to cut back and fit a cheaper kitchen. However, the rest of the house had been renovated to a high standard using excellent quality fixtures and fittings (I’ll always have a soft spot for oak woodwork), so the kitchen needed to be high quality too. Matt at Joseph William Bespoke even managed to talk me into having a better quartz worktop, his guidance was a contributor to the speed and price at which the bungalow sold and in return of his commitment he has a free holiday when he comes to fit the next one! We hadn’t expected that resale to be so soon but that was the Cornwall Curveball. A recently renovated bungalow “finished to a high standard throughout and superbly styled” (Redbrik) that I absolutely adored, sold very quickly for a profit. I have no doubt in my mind that using a reputable estate agent such as Redbrik, with a talented photographer, paid back too. If you've gone through the hard work of transforming your property you need to lean on the experts to market and secure you the best price possible.

Now we find ourselves with a third renovation, our home in Cornwall. I’ve shared the story of buying our forever home on the Alpine blog. This one is not to flip but nonetheless we applied the same principles when choosing where to live. We’re taking our time designing but find ourselves spending more time on the beach or in the garden, perhaps a welcome and well needed break from all the dust.

I want to add here that making a profit on your home can feel like a bit of a dirty word and I challenge that. If you’ve put in the hours of research and labour (I hoovered between those floorboards SO many times), had the sleepless nights, made sacrifices on holidays and meals out (my builders had biscuits whilst I cooked beans on toast), and managed the risk then you deserve that return. Renovating isn’t easy, there’s a lot of worry, mess, and decision fatigue kicks in but it can be so rewarding if you do it sensibly. Below are my five tips to help you renovate for a profit.

1) Location. Know the area, know what properties in different conditions sell for, figure out who’s buying in the area, work out the value per square foot. Estate agents will help you with this, I had open and very helpful conversations with Ross, a property consultant at Redbrik, before buying both of the above properties. Property consultants value properties and know the history of property in the area, they know what people are looking for and they can sometimes give you an indication of the value you could add based on potential improvements. There is no such thing as a silly question so just ask the experts. Ultimately location is often the biggest asset and should be the key factor in calculating if it’s a sensible investment.

2) Have a survey. Yes, you might be replacing absolutely everything, but you need to know that structurally the house will stand up to the challenge. There are four main types of survey, you should research and decide which one is most suitable depending on the property. My experience of having a survey has always given me peace of mind and I’ve known exactly what I was getting myself into. In the case of Hope Cottage, it was useful in renegotiating the purchase price too.

3) Collect several quotes and prices for everything you need to do. Even down to the taps in the bathroom. Do your research before you begin and it will make the whole thing easier, and you’ll learn along the way where you can save and where you need to splurge. Spreadsheets will become your friend.

4) When it comes to getting down to the business of building choose your builder wisely. They are your biggest investment and therefore greatest risk, if you don’t pay for the right experience and skill you will end up paying twice. You need to work with a team who are trusting, knowledgeable and have high standards. The same applies to any trade you need to call on.

5) Lastly, you are creating a home to sell, and you are selling a lifestyle, so design and create a home that adds value to peoples lives. Remember who your local demographic is, who could be interested in buying the home you have recreated and what do they need from it. If you don’t know how to design a home that enriches lifestyle, perhaps work with an interior designer, if the budget doesn’t allow maybe instruct them on one room to have support that will get you started.

If you have any questions you can comment, email me or message on Instagram. I am more than happy to help.

Take care,

Charlotte