Pros and Cons of Renovating a House

Visit Our Website

Renovating or remodeling a building maybe to give the house a facelift it desire or to attract good rental rates and less time in the market. If the purpose of renovating a house is to sell immediately, be sure not to spend more than you can sell the property for. Always try to stay within your budget while keeping the house beautiful and inviting. Also be careful not to bring in too much of your own personal style/features as prospective buyers may not share your views.

Pros of Renovation

You will be able to get a property at choice location: Areas that are fully developed will have some houses for sale that are good for renovation either for rental purposes or for outright sale.
You may get a good price for a building that just needs renovation to bring it to an inviting taste for tenants or buyer without having to spend too much money: The cost of buying plus renovation may be far less than building a house from scratch.
It increases the property value: Using plaster of Paris (P.O.P) on the wall, ceilings design or other structures and changing out the windows, doors, kitchen cabinets, redesigning the compound with interlocking stones, new gate and using fresh new paints on the house will completely add value to the property.
You can decide on the finishing: You can decide on the finishing looks of the interior by using quality tiles, doors, windows, cabinets, electrical fittings, plumbing fixtures and beautiful paints.
Less time may be used for renovation and getting the property to rental or sales market: If the purpose of renovation is for sale or rent, buying an existing building and renovating may get the property to market faster.
Reduces maintenance cost: Most of the maintenance associate with old buildings are likely to be issues with plumbing, door handles, electrical fittings etc. Addressing these issues increases functionality and beauty of the property while also increasing its value.

Cons of Renovation

You may end up spending more than budgeted: This may be as a result of complete revamping of the roof and unforeseen plumbing or electrical issues. It can also be a result of little remodeling work that became enormous due to structural integrity issues or compound drainage issues that are hard to resolve if the pre-existing building is below the road level.
Hidden issues with the building: It may take longer than expected to get the renovation work done due to unforeseen plumbing, electrical or structural integrity issues.
You may not be able to get the interior and/or exterior looks you want: Some architectural layouts are hard to change due to structural constrains. In such a case you are stuck with the design of the living space and/or the architectural design.
You may not be able to get the numbers of apartments and this may affect the return on investment: The space in the apartment may be extremely large and has no significant effect on the rental rate.
Longer time to eject tenants: Sometimes it may take longer time than anticipated to eject tenants from the house, if you purchase the house with tenants in them.

Disclaimer

Any views or opinions represented in this blog belong solely to the blog writer/owner and do not represent those of people, institutions or organizations that the writer/owner may or may not be associated with in professional or personal capacity, unless explicitly stated.

Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual. All content provided on this blog is for informational purposes only. The writer/owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

The writer/owner will not be liable for any errors or omissions in this information nor for the availability of this information. The writer/owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Comments are welcome. However, the blog writer/owner reserves the right to edit or delete any comments submitted to this blog without notice due to:

- Comments deemed to be spam or questionable spam.

- Comments including profanity.

- Comments containing language or concepts that could be deemed offensive.

- Comments containing hate speech, credible threats, or direct attacks on an individual or group.

The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at any time.

Comments

Merits and Demerits of Building a House from Scratch

Visit Our Website Building a house from scratch for rental purposes or outright sale has its merits and demerits as compared to renovating an existing building. Merits You can have an input on the architectural design of the house. You can decide how the external view and the interior of the house should look like. Creating an area with good and easy to move around living space can make the apartment appealing to tenants. You can decide the budget for the project. Based on your estimated selling price for the proposed property, you can decide on the budget you want to put into the investment to give you a reasonable profit margin. You can decide the number of bedrooms for each apartment. Most times with a good survey of the vicinity you will be able to tell what kind of apartment will rent faster and give higher returns. Example the difference between 1-bedroom apartment and 2- bedroom apartment or 2- bedroom apartment and 3- bedroom apartment may not be ...

The advantage of competitive rental rates and strategy

Visit our website In general, people prefer a good community from where they can set out for work in the morning and return home after a long day at work without any problem. A community where they will have comfort and security thus be able to spend time with their kids, family and friends. This same community should have all the necessary social amenities that will enhance a good quality of life within convenient reach. In the developing world, rental rates are determined by the location, demand, condition of the apartment, size (outdoor space, living space and numbers of bedrooms and bathrooms) ,social amenities (like good roads, drainage, schools, playgrounds, shopping destinations, health services, entertainment venues and convenient access to transportation and regular electricity). Note that the finishing fixtures used in the house may or may not add value . For example, a house located in a beautiful estate in a community with excellent social amenities and good...

Real Estate Investments : The rental property advantage

Visit Our Website Some property developers or real estate investors may prefer to sell or flip houses than to keep the house/property and rent or lease out. They may argue that due to the misuse of rented properties by tenants, delayed payment of rent, hassles involved in collecting rent and difficulties in evicting bad tenants, they adopt the strategy to build and sell. This way, such investors get back their capital and make some profit in the short-term. However, for long-term investment purposes, building a house to sell or to buy then renovate and sell might not be an investor’s best option. In this post, we at Variance Posh Ltd. will explain why rental properties can help achieve the dreams of financial independence. Why rental investments are better in the long term The property owner has a lot to gain from renting/leasing out especially if the property is situated in a good neighborhood. The real estate investor can get good rents monthly/yearl...

What I Wish I Knew Before Investing In Rental Properties

Visit our website Most often than not, a lot of people seeking investments in rental properties are being discouraged due to the hassles involved in collecting rent from tenants. Some tenants are also known to have a poor maintenance culture and as such, leave the house in a deplorable state after moving out. Such tenants have failed to recognize that a lot of work, time and money went into getting the property to the enticing finished state that attracted them to rent the property in the first place. It should be noted that not all tenants are like this, but the disturbing truth is that many are. Despite this disturbing reality of rent collection hassles and misuse of rental properties by some tenants, there are a lot of ways to minimize this: 1. Never be in too much hurry to rent out your property Some property owners are in a hurry to rent out their apartments or commercial spaces, so do not carry out proper investigation on the prospect...

Liquidity of Real Estate and What You Should Consider

Visit our Website It is very important for an investor to consider expected yield and liquidity before investing in a real estate asset (land, buildings and estates). Any asset that can be ex-changed for money has a certain level of liquidity. During your ownership of real estate, the yield (rent) creates revenue and cash flow. However, your ability to sell your real estate at a reasonable price and in a timely manner is determined by liquidity. So what is liquidity? Liquidity describes the ease at which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Money or cash is considered the most liquid asset because of the ease of exchanging it for other goods or services, while real estate, securities, fine art and collectibles are all relatively illiquid. Typical order of asset liquidity are currency, securities (stocks, bonds and treasury bills),Precious metals (Gold, Silver, Palladium, platinum etc.), real estate and A...

Important considerations before you invest a loan or personal savings in rental properties

Visit our website Are you thinking of investing in rental properties? If yes, congratulations, carefully planned and managed rental properties investment can be quite profitable in the long term while also allowing the investor to build wealth on the journey to financial freedom. Generally speaking, investments can be done with personal savings or loan. A loan can facilitate the ability to invest in real estate and make good profits; however, an investor has to be extremely careful before taking out loans to finance an investment in rental properties. This is because an inability to meet up with loan payments can quickly wipe out investments and leave an investor with debts and financial troubles. Here are some critical things to consider before investing personal savings or loan on a rental property: 1. Negotiate good deals on land/property purchases (buy at a price below current “fair market value”), this way, you already made a profit on the day you close-out the real e...

Investing in real estate properties: Successful startup and growth strategies

Visit our website In general, those who embark on life endeavors with a good strategy have the odds stacked in their favor to succeed. When starting off as a real estate investor (full time or as a side hustle), a good strategy or road map is outlined below: Stage 1 : Startup Stage 2 : Growth Stage 3 : Financial Freedom Stage 1: Startup You can start with your personal savings or with a loan. Note that you need to be careful about starting a business or real estate investment with loans. Discuss with your financial planner/adviser before making the decision to invest a loan on rental property. There are 3 options for stage 1: a. Purchase a piece of land and resell for a profit. Reinvest the original capital and profit. Search for good deals on land/property purchases (buy at a price below current “fair market value”), this way, you make some profit on the day you close-out the real estate purchase. b. Purchase a piece of land an...

Make Your Money Work For You

Visit Our Website In real estate investments, there are several options for investors. They can invest in land speculation, build and rent, build and sell, flip homes, or buy and hold. If your goal as a real estate investor is to continually invest your capital with the hope of making a 10% to 20% profit on each sale per year, you may have to consider building a house and renting it out. When you rent out your house, there is a high probability that you stand a chance of making at least 10% on investment if development is well supervised to minimize construction wastage and unnecessary spending . If your property is a multi-tenanted building, you may earn more than 15% per annum of your capital. The build and rent option surpasses other real estate options if the house is a lucrative rental with good tenants that causes minimal damages to the house, excellent rental rates, and payment on time. This means you can eat your cake and have it. By renting out your house ra...

The Relevance of a High Oversite Concrete/Foundation of a House

Visit Our Website Oversite concrete (often referred to as German floor by the laymen) is a layer of concrete used to seal the earth under the ground floor of a house. Before pegging and digging the foundation of the proposed building. The first thing is to determine how high the oversite concrete of the house should be raised above the natural ground level. Note that there will be many different levels on a sloped land. It is very important to check the topography of the area. More important is the level of the land with respect to the road. If the road is tarred, use it as a reference for determining how high to fill the land when the building is completed for proper grading of the yard for surface drainage. But if the road is not tarred, endeavor to put into consideration how high in the future you think the road will be filled or excavated during construction and use that as a guide or reference. Having a good knowledge of how high the land should be filled to ena...

Selection tips before you purchase the land site for building a rental property

Visit our website Some areas have lands that are highly over priced but the rent does not measure up. Investing in such an area will take longer time to recoup investment. The property will not also gain so much value after some years. Don’t invest in areas where you know your property will suffer rent void, give lower rental rate and/or get low property value appreciation. Below are some things to consider before buying a land for rental purposes. 1. Compare land price to rental rate : A good investor should be able to compare rental rates to land prices in different areas. This will give them an idea of where best to invest and get good returns. The bulk of the difference in the cost of similar real estate properties in different areas is usually the difference in cost of bare land in the different areas. In most cases, cost of labor and materials of the building structure is similar in a particular locality. Sometimes it is better to acquire a p...

Variance Posh Real Estate Developers

Search This Blog