Seventh Heaven

Want to know how to maximise the potential of your investment? Sarah Beeny gives Tracey Lattimore seven tips to property development

Tracey Lattimore

“Sarah Beeny warns there’s a big difference between buying and renovating a house to live in and one to sell or let.”

While the buy-to-let business offers long-term rewards, it’s possible to add value quickly by renovating your rental property, which is a route that many landlords choose to take.

However, Sarah Beeny, property expert and presenter of Channel 4’s Property Ladder, warns that there’s a big difference between buying and renovating a house to live in and a property to either sell or let.

She says: “Buy where the opportunities are, not where you would like to live yourself. It’s not just about finding the right area, but locating the right property in that area – and different groups want different things from a place to live. The safe option is to try to make your property appeal to the broadest market.

“One of the most important pieces of advice is to make sure that you don’t get too personally involved in a property. If you do, you are likely to end up adding elements that appeal to you rather than those who’ll potentially live in the house. You are also likely to let your heart rule your budget, not your head.”

So what should landlords be looking out for when developing a property? And what’s the best way to add value? We asked Sarah to give us her seven top tips to avoid development pitfalls and guide you through the property maze.

1 Choose your investment wisely

Spotting the best type of property for renovation depends on your agenda. If you’re looking to make money quickly, then you need to ensure that all your figures add up. The biggest mistake is to do lots of work on a property and assume that there’s money to be made at the end of it.

2 Be realistic

The main pitfall of property renovation, which I see time and time again, is where people underestimate how much work needs doing and how long it’s going to take. It’s the biggest thing that people fall down on when they’re developing a property. When you’re talking about spending big money, £40,000 may sound like a lot, but it’s not when you’re building an extension.

The price of an extension depends on so many things, such as what you’re doing and how you want to go about it. For example, a simple lean-to extension would be relatively cheap, whereas a two-storey extension with top quality fittings could cost as much as £150,000.

3 Maximise your assets

Extending a house is definitely advisable if you need more space. Bear in mind any scare stories about house prices – if you’re not planning on selling in the next three to four years, then there’s no need to worry. House prices may dip, but they always come back up again over a period of time. You have to take a long-term view.

4 Adding value is easy

Firstly, give your house a good clean – it’s easy to do and costs nothing, and it makes such a difference. The next best thing to add value to your property is to extend your house, either up, down or out. The cheapest thing to do would be an extension at ground level, but if space is limited, see if you can extend up into the loft. It’s not always possible, so if this won’t work, then a basement is your third – but most expensive – option.

5 Call in the professionals

People seem to think that they can tackle any kind of structural jobs, and I constantly come across people knocking down walls with gay abandon! They really need to leave those kinds of jobs to the professionals, as it can have disastrous consequences.

6 Tackle your jobs in order

The first thing to do when developing is to make sure that the windows of your property are sound. Most potential buyers can cope with a bit of redecoration, but if you do the main jobs, it will make it seem a lot less work for them. If a buyer knows that the house has got a good plumbing system and new wiring, then they will pay more for it as they won’t have all that upheaval themselves when they move in.

But if you only have the budget to do some of the jobs, then tackle the biggest ones and work your way down.

7 Know what sells

When it comes to selling your property, the kitchen is the most important room, followed by the bathroom and then the main bedroom. You don’t necessarily need to think about adding an en-suite bathroom – it depends on how big the house is, where it is and how much it might add to the value. It doesn’t always pay to have one.

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