Submitted by Admin
Are you looking for a new home, but want to make sure you can add value to it after you move in? Here are some of the things that you need to look for when trying to find a property that has potential.
Buying a new home is a big deal. For most of us, it will be the single biggest investment we will make in our lifetime. The majority of people go into debt for it too, in the form of a mortgage. This is why more and more people want to look for potential to increase the value of a home after they have bought it. It’s a way of protecting your investment if you know you can make your home worth more than what you bought it for. So how do you spot a property that has potential in this area?
Does It Have Land?
One of the things that will always add value to a property is land. If you have extra land, you can develop it or sell it off for profit. This is why rural properties and those with large gardens will always be in demand and, as a result, command a higher price. Look for opportunities to buy larger plots of land that can be sub-divided, or for planning permission to build an extension on an existing property.
Even if a home is not on a large plot, having some extra space to extend a property is another way to add value. You don’t necessarily have to extend the property itself, you could also have an office built in the yard, or a pool and a pool house. These are all ways you can use a property’s land to add value to it.
Is It In A Good Location?
The location of a property is always going to be a major factor in its value. If you are looking for a property that has the potential to increase in value, it is important to look for one that is in a desirable location. Look for areas that are up and coming, or have already been developed and are now sought after locations. This is one way that working with real estate agents can help you, as you will benefit from their inside knowledge.
The closer a property is to the city, the more expensive it is likely to be. But, if you are looking for a property that you can add value to, you might want to consider one that is further out of town. These properties are usually cheaper and have more land associated with them. If the location is good, you could potentially develop the property or sell it off for a profit in the future.
Consider The Condition Of The Property
Another important factor to consider when looking for a property with the potential to add value is its condition. If you are buying a fixer-upper, then you will need to factor in the cost of repairs and renovations when considering whether or not the property has potential. It is important to remember that even though a property might need some work, it could still be a good investment if it is in a desirable location.
You also need to consider the condition of the property in relation to its age. An older property might need more work than a newer one, but it will also have more character. This is something that many people are looking for when they buy a home, and it can be a selling point if you decide to put the property on the market in the future.
Older properties might also come with some restrictions, such as being listed buildings. However, this can also add to the value of the property as it gives it historical significance.
Research What Nearby Homes Are Selling For
When you are trying to identify a property with the potential to add value, it is important to do your research. One way to do this is to look at what other homes in the area are selling for. This will give you an idea of the market value of the property and what potential buyers might be willing to pay. It will also tell you if there tends to be a top end budget in the locality, which buyers aren’t willing to go above. This will help you decide if the value you think you can add will actually command any extra money on the market.
You can research this by looking at online listings, or by speaking to local real estate agents. They will have a good understanding of the local market and will be able to give you an accurate idea of what properties in the area are selling for.
Could You Add An Extra Story?
One way to add value to a property is by adding an extra story. This can be done by extending into the attic of the property, building over a garage, or developing the basement. This will all add to the usable footprint of the house, which should add value. However, it is important to make sure that you get planning permission before you start any work.
You also need to consider the cost of the project and whether or not it is feasible. If you are planning on doing the work yourself, then you need to make sure that you have the necessary skills and experience. If you are planning on using a contractor, then you need to get quotes and make sure that the project is within your budget.
Finding a future home that has the potential to add value is a savvy move financially. But it does take some careful planning to ensure the money you put into the home will pay off in the future. By following these tips before you buy a property, you should be able to make an informed decision about your future home.