Property Makeover Dilemma – How do we proceed if home in development area?

Property Makeover Dilemma – How do we proceed if home in development area?

 

As a Property Makeover Specialist I have a series of the same questions that are often asked during the initial consultation process.

I regularly guest speak at property presentation seminars and was presenting very recently, when those same questions appeared. I will share them with you over the next few months, starting with this first and very common dilemma:

‘All of the houses in my street have been either knocked down or fully developed. It’s unlikely that a family will buy, however I don’t have a crystal ball, so should I waste time and money making changes, even though my home may be bulldozed and developed?’

In answer I say; yes absolutely, a property makeover is essential, but with caution. In this scenario, it is likely that there will (without seeing the home or discussing with the local agent) be two types of buyer categories, the owner/occupier and the investor/developer.

For example, the owner/occupier wants to buy one of the remaining cottages in the area and then renovate to make their home work for their family dynamic. In this case they will either want to move in immediately or rent out the property until their planning permission is through for renovations.

Investors also want the property light, bright, clean and staged so they can compete to attract tenants immediately.

This may take 6 months on average if they are lucky and up to 12 months plus pending on the individual plans. Therefore to aim your property at this type of buyer, it has to be light, bright, clean, staged and rentable or at least habitable until they can renovate.

In scenario two, the investor/developer has similar needs. They must ensure that any property will generate revenue, so it must be rentable until their development planning is approved. They will have built the expected rental return into their financial calculations for the bank. In fact with an investment loan, the current market rental appraisal is an important figure when seeking mortgage approval.

Therefore investors also want the property light, bright, clean and staged so they can compete to attract tenants immediately.

So in conclusion, the answer to that common question is that the only home that doesn’t require an initial assessment and a makeover plan, no matter how big or small a project, is a home that is unsafe and condemned.

Papillon Styling & Renovations.

Transforming Property. Changing Lives.