How do you budget for a property development project? There are a few figures that need to be considered:
For a rough estimate of your overall costs, you can try using an online home renovations calculator - but remember this is an estimate, and the total cost could be considerably more or less.
We can sometimes get wrapped up in the project ourselves and start to impose our own personal feelings on the property. Buying fittings that perhaps we would like, but we need to remember is that our tastes may not be the customer's too. And if you’re buying fancy light fittings or fancy taps, kitchen fittings or appliances that you might like you may very well be spending money that is unnecessary because whoever buys the property is going to come in and put their own stamp on the property anyway.
Lastly, you need to be aware of accounting for the value of property increasing. The property value could increase or even decrease over time. And while you’re developing your property prices may very well go up, they might slow, or they may very well go down. The last thing you need to do is be stuck with a figure in your mind of what you’re going to realise from the property that isn’t realised. So just account for the value you add to the property. And this of course is more important for you’re using the profits from your development to purchase other properties because you may end up having to buy higher, as well as selling higher.
For more information on the cover Towergate can provide for your unoccupied property, visit our unoccupied home insurance webpage or call one of our specialist advisers on 0344 892 1750.
Date: October 08, 2019
Category: Home and Property