Property News
“Buying an Unmodernised Property”
There are about a dozen property-related programmes on TV every week. Some of these track the progress of a wreck to a finished home, or at least highlight a property’s potential.
We have certainly noticed an increase in the number of enquiries from people specifically wishing to buy a run down property, and this has had a positive effect on the price we have been achieving for such properties.
However, a word of caution here to buyers of unmodernised homes. Firstly, be careful not to get sucked into a scarcity-induced frenzy – particularly if you are buying at auction. Such buyers often find out too late that they have paid way over the odds for a property. Additionally, do account for a large contingency fund - some say 40% or more over your renovation budget, as there are usually several unforeseen and unavoidable expenses. It would be a shame to spend the money you have earmarked for your beautiful new granite kitchen worktops on replacing the rotten window frames discovered during the work. Many renovation jobs end up far from “finished” as the owner simply runs out of funds towards the end of the project.
This is the reason why you should not buy a property to do up for profit unless you know what you are doing. In terms of value, a rule of thumb would be that it should cost no more than the likely value of the finished home, less the cost of renovation and say 30% contingency. The “profit” should be the pleasure of knowing the house will eventually be exactly as you want it to be. Also, don’t underestimate the hassle, heartache, time, interest and opportunity cost of your own personal involvement in the project.
Peter Ryder
Managing Director
Thorntons Property
News Index
- April 2018
- 16 “Buying an Unmodernised Property”
- March 2018
- 19 “Will the Internet Replace Estate Agents?”
- February 2018
- 26 “Quick Tips to Maximise your Sale”5 “Identity Caution When Moving House”
- January 2018
- 22 “How Long Has It Been On The Market?”8 “Valuation Versus Value”
- December 2017
- 28 “How Many Should We See?”4 “Optimising Your Saleability”
- November 2017
- 20 “This year - Don’t wait till Spring!”13 “Defects And Disputes – Should I Disclose Them?”2 The first interest rate rise in a decade
- October 2017
- 16 “Selling Tips for Autumn”1 “Might Sell, Might Not!”
- September 2017
- 25 “Prepare to Paint”16 “Ask the Expert!”
- August 2017
- 13 “Making Moving Easier”
- July 2017
- 31 “Working from Home”24 “Something to Shout About” 16 “The Kitchen is the Heart of the Home”
- June 2017
- 26 “Improvements – Are They Worth It?”21 “Location, Location”10 Agents’ Skills in Demand
- May 2017
- 22 “Deciding on Price” (Part Two)10 “Deciding On Price” (Part One)
- April 2017
- 24 “Advertising for Results” 17 “Should We Accept The Offer?”11 “Put your back into it”1 “Who’s Choosing Your Home?”
- March 2017
- 20 “Hit The Road”13 “Catch 22 –Should I Sell First or Buy?”6 “Working In Partnership with your Estate Agent”
- February 2017
- 27 FEB REPORT - “Slow Growth with Strong Demand”20 “Why Overpricing May Leave You Out Of Pocket”13 “Cupid the Estate Agent?”7 “How Long Has It Been On The Market?”
- January 2017
- 29 Market report – January 201717 “Valuation Versus Value”8 “How Many Should We See?”
- December 2016
- 17 “Should Your House Have Sold By Now?”5 “Removal Planning”
- November 2016
- 27 “A Winter’s Sale?”21 “Distorted Opinions?”14 “The Advertising Myth”7 “A Move by Christmas?”
- October 2016
- 31 “Finding the Right Property”17 “Relative Values”
- September 2016
- 26 “It’s Not Just About Selling”19 A Proactive Approach Essential5 Avoid Virtual Tours
- August 2016
- 29 How Serious is my Buyer?22 Clutter Costs !15 The Feelgood Factor8 The Agent you Prefer - at the Right Price
- July 2016
- 30 First Impressions25 Choosing Your Solicitor18 Should I Sell During the Summer Holidays?1 What does Brexit mean for the Scottish property market
- June 2016
- 17 Top tips for viewing properties like a pro17 5 methods for improving your kerb appeal17 Tips for saving for a deposit
- May 2016
- 30 Property perfect move for Natalie
- January 2016
- 29 Thorntons Top after ESPC Mystery Shop
- December 2015
- 22 Increased buyer demand will drive house prices up during 201620 Property solicitor gives local food bank a boost15 Second home levy will boost Dundee property market
- November 2015
- 11 Unique opportunity to buy a stunning new home in an award-winning development in St Andrews
- September 2015
- 16 Tayside property specialists lead the way in boom time