06 Sep How to find properties with potential
Investing in property is all about unlocking potential.
When you’re seeking out properties, these are some of the factors that can help you add value and transform an underperforming property into a profitable investment.
Can you add a storey or an extension?
This month, new laws come into effect that will relax many current planning rules giving investors the opportunity to redevelop properties.
A fast track approval process will allow up to two additional storeys to be added to a property without the need for a planning application. However, the appearance of the extension and impact on neighbours needs to be taken into consideration.
An additional storey could enable you to add bedrooms and a bathroom, instantly increasing the value of the property. It could also give you more scope to alter the usage of the house, perhaps allowing you to adapt it into an HMO.
You would need to take advice from a builder to ensure the framework of the property is strong enough to support a second storey. An alternative is to build an extension if there’s sufficient surrounding land. A smaller garden is often welcome in exchange for more living space.
If there’s an outbuilding, you may be able to join it up with a link extension while lofts and basements may have scope for conversion.
Can you buy additional land?
Small houses on large plots offer plenty of scope for development.
And if the plot of a property is too small for any extension or redevelopment, have a look to see if there’s any adjacent land that can be purchased.
If you can enlarge a plot, this opens up considerably more development opportunities. For a small outlay, you could end up with a highly lucrative redevelopment project.
Can you change the layout?
Particularly in larger properties, a simple way to unlock potential is to change the layout. Take a look at the floor plans and see what rooms can be opened up and what rooms can be divided.
If you plan to convert into an HMO, you want a communal kitchen and living area with a sufficient number of bathrooms to accommodate the number of bedrooms in the property.
There are guidelines for minimum HMO room sizes and, depending on your local authority, there may be other criteria you have to meet to be compliant. Check what these are before you draw up plans.
Can you fit new kitchens and bathrooms?
A simple and fast way to increase value to a tired and dated property is to fit new kitchens and bathrooms.
The property may have been occupied by its previous owners for decades, and the ‘mod cons’ could come from a different era. A straightforward makeover including freshening up the décor throughout and installing a shiny new kitchen and bathroom can add considerable value to the property.
You may also be able to add a ground floor cloakroom, which is highly appealing to buyers. Also, improving the energy performance of the property may be a simple matter of installing a new boiler, improving loft insulation and getting cavity wall insulation.
Would you like to learn more about property investment?
We’ve recently launched two brand new online property investment courses:
Property Investing Masterclass – An Introduction to Property Investing
This course will provide you with an introduction to property investment, whether you’re new, intermediate or experienced.
House of Multiple Occupancy Masterclass – Live Recording
This will give you a better understanding of one of the most popular and financially rewarding property strategies in the UK.
Plus, we’re delighted to introduce PMA Property Mentor Elite Online & Personal to motivate, inspire and challenge you to achieve your personal and business goals.
All of our mentors are experienced industry professionals with years of experience AND are all active investors.
Email email@example.com or phone 01252 730040 to be the first to take advantage of this brand new online mentoring service.
You can also use my calendar to schedule a call at https://go.oncehub.com/MarkLloyd and book a 30-minute slot.