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Is renovating a property your dream?
You may love nothing more than sitting down with a cup of tea in front of a property programme in which brave Brits buy a house in need of a major facelift and then give it a makeover in the hope of creating a dream home and making a profit. However, is this something you would ever consider doing yourself?
Well, it may surprise you to learn that one in ten of us have done exactly this.
A nation of property lovers
The UK is often regarded as a nation of property lovers, and the number of TV shows about homes would seem to support this. However, some people are not content with just being viewers, but want to get stuck in and have a go themselves.
New research* conducted for us found that more than one in ten people have invested in a house they saw as a renovation project. Of these, the majority had completed the work, while one in five were still at it.
Dream homes and hearty profits
One reason to take on a job like this might be to create the dream home that you couldn’t afford if it was being sold in that state. The survey found that people aged between 25 and 34 years old – usually the age group most likely to be considering taking their first steps on the housing ladder – were the most inclined to invest in a renovation project.
Similarly, Londoners were the residents most likely to consider a fixer-upper. It is well known that the average house prices in the capital far exceed those elsewhere in the country, which could be why more people here are willing to buy a house that needs work doing to it. That way, they might be able to bag somewhere in their favourite postcode or with the number of bedrooms they want for less money and then spend time getting it to where they want it.
As well as creating a dream home, the possibility of making a profit from it could also drive people’s interest in renovation projects. In fact, the average profit the survey’s renovators expected to make – or had already made – after the amount they spent on the property and the renovations was subtracted came to between £20,000 and £30,000. That’s no small change!
When hard work pays off
So, there’s certainly advantages to be had by renovating a property – but that’s not to say it doesn’t involve a lot of hard work. Nearly half of the renovators who took part in the survey admitted the project had been harder than they were expecting, and only one in five said it was easier.
However, in spite of this two-thirds of these respondents said they would invest in a renovation project all over again.
Do it yourself
Of course, you don’t just have to buy a new home in need of improvement to make it your dream property. You could simply focus your renovation efforts on your existing home.
If it lacks the bedrooms you want, a loft conversion might be the answer. If you want more family space, you could convert the cellar, or even the garage. Projects like these could help you make the most of your home, and it might increase the value too – resulting in a profit for you.
If renovating your home – or a new one – is something that appeals to you, be certain to carefully work out a budget first. You don’t want to get halfway through the project and realise you’ve run out of money. You should also think about whether you have the time to take on such a big job, so you avoid being one of the 46% of renovators who were surprised at how hard the work was.
At Ocean Finance, we could help you find a home improvement loan that might help cover the cost of what you have planned. Find out more here.
THINK CAREFULLY BEFORE SECURING OTHER DEBT AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
*OnePoll questioned a nationally representative sample of 2,000 adults aged 18 and over between 2nd May and 12th May 2014.