There are many things to consider when deciding to sell a home; when is the best time to sell? Should another house be bought first? And perhaps most importantly, how can the profit from the property be maximised?
The buy-to-let business in the UK is booming, with more and more people seeking to make their money from shrewd investment in real estate. There is no doubt that there is a lot of money to be made from this, but it may be worth looking closer to home in terms of investment opportunities. If the plan is to sell-up and move on within a few years, it’s worth considering what improvements can be made to the house that will increase its value.
For example, many homeowners choose to build an extension, whether it is for a conservatory, study or simply to have more living space. Planning permission is not always required if the planned extension is under a certain size but there are rules that must be followed so it’s imperative to check on this before starting the process.
There is also the issue of funding the venture. Whilst building an extension can add a considerable amount to the value of a property, it will be worth checking how much value it will add and compare it to how much the work will cost to carry out, to see if it will be cost effective.
One option to fund the extension is to re-mortgage your home. This enables the release of equity in the house that can then be used for anything from home improvements to a new car. There are normally costs attached to re-mortgaging but, again, how cost effective this will be depends on the value that any home improvements will add to the property.
Another option is to take out a bank loan. A typical homeowner loan from a bank would allow for anywhere between £5000 and £100,000 to be borrowed - up to 125% of the value of the house, minus the existing mortgage balance.
This is a good way of gaining access to cash instantly to invest in the property, which in the long-run would add considerable value to it. Plus there are also personal loans, that can be used for anything at all including home renovations. So it’s definitely worth checking the various funding options to compare loans and see which is most suitable.
With more and more people looking to buy-to-let as a means to make money, it’s becoming increasingly difficult to find that bargain investment, so consider looking closer to home to maximise the value of your property.
About the Author: Paul McIndoe is an online, freelance journalist. He lives in Edinburgh with his two dogs.
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