Making buy-to-let properties more valuable
There are multiple options with investment property. Investors might choose to:
- Refurbish the property and sell it on immediately.
- Renovate the property and sell it in the future, renting out in the meantime.
- Modernise the property and retrain it as a rental investment.
- Reside in the property and renovate it at the same time.
One of the essential factors in choosing a refurbishment design is in catering to customer preferences. A modern layout and design will make a property easier to sell and thus more valuable and simpler to rent out at premium rates.
This often depends on the purpose of the property - for example, a student accommodation might be refurbished to make it an ideal rental property since any subsequent purchase is very likely to be on a let to buy mortgages basis.
It is also important to budget carefully for the modernisation works to avoid spending more on an investment property than it is anticipated to be worth.
Adding the most value to buy-to-let investments
Some landlords opt to add an extension or convert the attic in an investment property. This is a way to add significant value, since creating an extension can create additional bedrooms, larger living space, and other bathrooms.
Property investment - profitable strategies
The reason that buy-to-let refurbishment mortgages have become much more popular is that with rising property prices, landlords have found it increasingly challenging to enjoy the high yield returns they have been used to.
Swift property turnarounds and quick refurbishments can provide an immediate profit. More extension renovations and adding conversions can significantly increase the value and saleability of a property, being a lucrative asset to an investment property portfolio.
Buy-to-let mortgage remains a strong investment sector, but taking a smart view as to the long-term performance of the market and where the budget can be spent to maximise the value of a property is essential.
As these mortgages become more competitive and more widely available, we anticipate that the success of the buy-to-let refurbishment market will continue to grow.
Revolution Finance Brokers are a specialist mortgage broker, negotiating bespoke deals on behalf of private, commercial, and business clients.
For independent advice about achieving the most attractive mortgage deals for your investments, give us a call on 0330 304 3040 or drop us an email at [email protected].
