One in 10 home buyers in the UK have bought a property to renovate with most intending to make a profit from their endeavours, new research shows.
However, half found the work was harder than they expected although two thirds said they would be prepared to do it again, according to the survey by loan provider Ocean Finance.
The research also shows that the average profit renovators have made or expect to make for their efforts is between £20,001 and £30,000. This was calculated by subtracting the purchase price of the property and the cost of the renovation work from the value of the house now.
While this much money is no small change, some home renovators are expecting to make much more. Some 7.8% of these respondents claimed they had either pocketed or hoped to make a profit of more than £100,000.
While the majority, 78%, of the people who have taken on a renovation project have completed it, some 22% admitted it was still underway.
Many respondents also revealed that the project had not been as easy to complete as they were expecting. In fact, nearly half, 46%, of home renovators admitted the work involved had been harder than they anticipated.
However, despite this the end result may have been worth it for most, as 63% of people who had taken on a property renovation scheme said they would do it all again.
People aged between 25 and 34 years old were found to be the most likely to have invested in a property in need of improvement, with 19% of this age group revealing they have done so. This might be because this is the age when people are thinking about taking their first steps on the property ladder, and buying somewhere that needs a facelift could save them some money.
Londoners were also the most likely to take on a renovation project at 20%. With house prices in the capital so much higher than the average across the rest of the UK, buying a house or flat that needs doing up might save residents money.
‘Taking on a renovation project can be a daunting prospect, but not only could it help you bag your dream home for a bargain price and you may end up making a profit too,’ said Ian Williams, Ocean Finance spokesman.
‘Of course, people should always make sure they carefully budget so that they don’t end up spending more than they can afford on doing up the property, and that they don’t take on a project they can’t manage,’ he pointed out.
‘House prices can go up and down, as can mortgage rates, and this may have an impact on the project’s budget but if all goes well, when the work is finished not only will they be left with a sense of achievement, but hopefully a healthy profit as well,’ he added.
source PropertyWire