Safe As Houses?

We may be in uncertain times, but there are still ways to make pounds from property says Colleen De Spaey from Bespoke Living

In the current climate of Brexit uncertainty, property no longer seems the easy investment choice it once was. With the London property market stagnating and the EU departure deadline looming, even here in West London many buyers and indeed sellers are sitting tight, waiting to find out more about the future of the UK before moving or investing further.

There are still, however, many ways to keep making money from the property market, your own home, or via investments... without feeling like you're taking too much of a risk.

WORK WITH WHAT YOU'VE GOT

The first option isn't a surprise: renovating or updating your own home immediately adds value to your property.

Walk along almost any residential street in Chiswick and you'll see several basements builds, loft extensions, or full home renovations. And there's good reason for it. Simply updating a tired kitchen or adding a chic modern bathroom can immediately add far more value to your property than the cost of the building work. And for lofts or basements, a medium sized extension of around 25 square metres can add up to £170K value in London, where space is at a premium. Of course if you choose not to move, you get to enjoy all that additional space, too.

The increase in your property's value means if you now want to use your property to invest, but don't want to sell it, you could remortgage for a higher cost-to-value ratio and increase your investment amount. If you're leasing your property, it raises your rental price. So if you can, any additions - even just a new bathroom or kitchen (or even just a lick of paint!) - will always pay off.

SET THE SCENE

If you are thinking of selling, but don't have the money for a full renovation or repaint, consider using a Staging company, or a renovation company used to staging homes.

A staged home can sell for up to 8% more than an unstaged home. A recent set of Georgian Almshouses in West London sold like hot cakes, not only because of the lovely location but also the high quality of the staging. The properties themselves had minimal storage space, but with a clever use of "fun-sized" furnishings (not quite a double bed, not quite a double sofa!) the interiors were made to look far more spacious and desirable than with standard sized furnishings.

A good staging company will help you with the best deals to put your own things safely into storage, too - meaning far less hassle if you're moving when the exchange finally happens. Like Interior Designers, they know how to work with the natural light in your property, awkward angles, and pokey corners. They work to bring in light, a sense of greater space, and gorgeous lifestyle decor, creating an appealing space your buyers - or renters - will want to emulate. If you're still living in your property, you can keep a capsule wardrobe and essential appliances with you and still live perfectly happily in a staged area, while the bulk of the stressful packing has already been finished and safely stored. Phew.

COLLABORATE WITH RENOVATORS

For many, investing in property itself seems an impossibility, as adding value through large renovation projects can seem far too big a task to take on with little or no experience. So look to collaborating with property developers who LOVE to get their hands - literally - dirty taking on building and renovation projects (and have an excellent track record in doing so!)

These days, there are many property developers, small renovations companies, and even estate agents looking for people who want to invest but have neither the time nor know-how to do it themselves.

Collaborators won't want to overspend your money, as it decreases the return for both of you. You'll also have the benefit of their expertise, as they know what properties will create the most value with the least risk. And you can always specify a "quick flip" to invest in rather than a whole house renovation, if you want to minimise your risk at first. This can be a match made in heaven; if you've done your homework - and signed carefully drawn agreements - the good news for you is you get to leave all the stress of the build or redecoration to the experts, and simply divide the profit between you both at the end.???

RENT OUT A ROOM

And finally, if you don't have the money to renovate or invest in a property, you could consider letting a room. Once seen as the preserve of students and younger professionals, many property owners of all ages are now enjoying the relief of meeting mortgages and bills (and even having pocket money left over) through using a spare room for a permanent lodger.

Look up the many B&B websites in London and the numbers of rooms on offer are astounding, with multiple owners across London signing up to rent out their spaces. But a longer term lodger is often easier. You won't have to clean constantly between one or two nights here and there, and although they will always potentially be around, with the right preparation - and the right lodger! - you can live very happily and peacefully in the same property without losing a sense of privacy. With social media, too, it's highly likely you'll find a friend of a friend you already have some connection with needing a space, too, for added peace of mind.

Of course, it helps to create a space they will want to hang out in. Perhaps have a compact DVD/Blu-Ray player and small flat screen TV, with something they can use as a desk, if they like to stay in in the evenings (but don't watch the same shows as you!) Soundproofing around doors will help a lot, too - you don't want to wake each other up for the odd WC visit in the night! Check for drafts in their windows, so the heating isn't fought over. And make sure you have an extractor fan in the bathroom (and kitchen, if you can) as there will be double the steam from your shower, kettle and boiling pots!

With preparation, taking in a lodger can be another win-win, and take a lot of financial stress off your shoulders. And perhaps best of all... if you have pets and want to take a trip, you already have a pet sitter in place!

colleen@bespokelivingchiswick.com

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November 1, 2019