Building a home to rent, sell or live in yourself is a popular way of making money in the property market. Buying a derelict building or patch of land and building a new house on it has many advantages, the financial ones often being the main reason why people decide to tackle the project. There’s also the fact that you can tailor the home to your needs, you can build exactly what rooms you want and where. Some people struggle to find houses on the property market that meet all of their requirements and so building their own would be more appropriate.
Although many people have successfully built their own homes or entered the field of property development, there are many horror stories floating around in which people have made huge losses on their property projects. In order to ensure you become a story of success, here are a few potential stumbling blocks to plan for and prevent them running your project off the road.
Many people choose to DIY projects in order to keep costs down, which is a necessary element of property development in order to make a profit. But taking on professional jobs which you have no skill or expertise in could spell disaster and undo all your other hard work. You need to be aware that there are laws surrounding building regulations and the safety of your home. If you’ve done an electrical job yourself you may not be able to rent or sell the house if it’s unsafe. Getting the work re-done can be costly, imagine having to have a new house entirely re-wired before seeing any financial benefit?
If you know in your heart that a certain DIY task you’re attempting is out of your realms of knowledge then call in a contractor to do the work for you. Receive quotes from a few different contractors and don’t be afraid to haggle, you need to set a price which is fair to both parties.
It’s not just the building of your home you need to take into account, but also the land beneath it. Although foundations are out of sight they’re certainly not something to be forgotten! If your foundations are unstable, your new or restored house could suffer from subsidence which is a terminal illness for many buildings!
Always get the land surveyed before building on it, ensure that the foundations are stable enough. If they aren’t you may have to reinforce the foundations before building on them. Failure to do this could spell financial ruin as you end up with your new investment being no more than a pile of bricks…
This seems a strange one; surely budgeting accurately will make your project more organised and therefore more successful? Whilst budgeting precisely and being in control of your project is incredibly important, you need to have room for financial movement. In many property development projects unforeseen problems can arise that you couldn’t have possibly accounted for in your plan. If you don’t have the money available to fix these problems your project will grind to a sudden halt.
Make sure you have an overflow budget to delve into for maintenance and repair issues you might not think of when drafting your initial plan. This should ensure your project runs smoothly rather than having to be put on hold to pay for repairs – remember time is money.
Building a house can be extremely rewarding, both financially and emotionally. When things go wrong however, it has the ability to lose you a lot of cash. Property development is a risky business, but the more in-depth your planning is the more successful your project should be.
This guest post was written by Stephanie Staszko on behalf of kitchen taps retailer Tapshop321. Steph’s always writing posts related to home improvement and interior design, visit her Twitter @StephStaz to keep up-to-date with her latest posts!