Is it Worth Buying Houses in Need of Renovation for Sale?

Sales

Posted in Jan 06 , 2025

If you are going to buy your first house or are just exploring new areas for property investment at the moment, one question always comes to mind: Is it worth buying houses in need of renovation ? You may wonder why these properties, as they will require a lot of work and effort to reshape. But if you look at the bigger picture, these properties offer opportunities that could be game-changers for the London housing market. How? We have covered everything in detail to explore the benefits, challenges, and ways to purchase renovated homes. It’s worth the read!

The Benefits of Buying Houses in Need of Renovation

Let’s start with some of the major advantages of investing in houses for sale that need renovation.

1. Lower Initial Costs

The biggest upside is that these houses are relatively lower priced than normal houses in the market. Most of the time, these properties are not valued for their condition, giving landlords a good opportunity to invest and create ROI.

2. Potential to Customise

If a landlord wishes to reshape the property, buying a renovated one offers the best opportunity to customise as needed. They can build their own modern rented unit for multiple families or make it specific for a single large family. The freedom to design based on the market requirements is always there.

3. Get the Best Return on Investment (ROI)

Buying, reshaping, and selling the renovated property is always profitable work. The condition and features you install will also maximise the value and income potential it will gain in the market whilst generating ROI. Let’s take an example: If a house was bought in Mitcham for about £450,000, then after the post-renovation, the value of the property should increase above £600,000, depending partially on the quality and the improvements made in the remodelled home.

4. Demand for High Quality Areas

Areas like Wimbledon, Morden, Colliers Wood and Mitcham always rise in price, and the demand for high-quality property here is a dream. Suppose landlords purchase a renovated property in such areas. In that case, they can build it as per the preference of tenants, which may include a low-energy consumption home with the finest quality interiors. This strategy works in London for people who question whether it is worth buying houses that need renovation for sale.

The Challenges of Buying and Renovating Houses

Whilst the benefits of buying are appealing, the landlords must also consider some of the challenges that can arise when you purchase. Here are some points to help you evaluate the challenges you anticipate during the process.

1. The Condition of Property

The renovated houses are different when it comes to condition. You can expect very basic updates to a major area repair required. Conducting a thorough survey from a renowned estate agent like Cribs Estates is important to ensure any potential area damage or dampness in the plumbing structure.

2. The Cost of Renovation

Let’s discuss the most crucial factor in this process: the budget. It can go towards the sky anytime due to an unforeseen repair. To give you an example, the cost of giving an upgrade to a kitchen may be somewhere between £9,000-£10,000, and to go for a complete house refurbishment will cost around £70,000 as per the size and scope of the property and timeframe needed.

3. Planning Permissions

In some cases planning permission is needed before the start of renovation, especially in places like conversations or listed buildings. Landlords are responsible for determining the local council's regulations and timelines for completing the project.

4. Government Regulations Compliance

As per the government, the properties listed for renovation must follow strict rules written to meet the finest standards. These include:

Properties must meet a minimum EPC rating of “E.”
Structural changes must comply with all defined safety standards.
Quick-fire alarms with escape routes for rental properties must be installed in case of any HMO properties
Gas safety regulations
Get the latest updates for EICR reports for electricity
PAT testing in case of HMO’s

5. The Time and Effort Needed

As a landlord, you must invest much time and effort caring for various aspects of the renovated house. We are discussing managing contracts, materials, project completion milestones and deadlines, and the budget.

How Cribs Estates Help Landlords?

Cribs Estates Ltd has been in the market for more then 15 years and specialises in managing the landlords investments in this UK property property market. We are experts in locating all the houses that need renovation and can be bought easily. Here’s why we are the most trustworthy and transparent in our work:

1. Property Listings As Per Budget

We have the most broad list of properties available for your review in the most popular areas, like Wimbledon and Mitcham. Our experts identify the most appealing properties that fit your budget and goals. Whether you require a family home, a small-level upgrade, or a large-level refurbishment, our team is ready to help.

2. Real Market Insights

To win the best deal, you need to have the latest information in the market. Cribs Estates has all the local listings and insights to help landlords make informed decisions, like knowing the maximum rental returns on the houses brought from renovation sales. Also, we have a complete comparison list of all the areas to ensure your investment is never on the losing side.

3. Free Property Valuations

Experience instant free online valuations of your property. Just fill out the form on the website and get the fastest free valuation for your renovated house. We have the most reliable factors to determine the cost and even the potential to upgrade that will affect the market value of your property.

4. Regulations and Planning Assistance

Getting permissions and compliance is always daunting if you don’t have a team beside you. Cribs Estates will always make sure your renovated house meets the criteria set by the local council and government.

5. End-to-End Property Management

From the listing, renter screening, repair and maintenance, and rent collection, we are your trusted partners for peace of mind.

Is It Worth It? The Verdict

Is it Worth Buying Houses in Need of Renovation for Sale? Yes! Buying these homes is worth the investment, considering their potential for greater ROI. You will need to partner up with Cribs Estates to ensure the smooth operation of your property.

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