Ways to increase sales and profitability in United Kingdom

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so you bought a property at a great price but now how do you add even more value to get the best return on your investment [Music] so really common strategy in investment in property investment is buy refurbished refinance or buy to their property and actually yes it is true when people say you make your money when you buy but actually number one that's not quite true number two you make most of your money in the long term through capital gains but that doesn't mean we can't immediately benefit from it today number one is development and development can come in quite a lot of ways dependent on the areas that you're in so the most obvious is up down back down left right wherever it is development within the property so you could go up into the loft that's often increasing about 30 value to the property or you could go down if you've got seller space you just need to get some tanking or some damp proofing down there or indeed you can go to the side or at the back of the property but other ways of adding value depending on where you are and the layout of the property is you could turn a house into two flats i've seen this done really well in higher value areas being 300 000 or more or indeed three-story properties even in lower value areas 150 to 200 grand and splitting it into three flats very easily just by putting them on their own utilities and having their own council tax and gas supply very easy to do very profitable if you've seen some of these projects i've got a property down in stanford that represents this where it's a nice semi-detached property with two garages a double garage there and now we have got planning where those two garages are knock down the garages and we are building another three bed semi-detached end of terrorist property increasing the overall value of the property to 600 000 from 300 000 making a hundred thousand pound profit and the great rental to add to the portfolio or indeed you could see the one that i've got going on in basildon right now very similar from a development point of view it's got a semi-detached bungalow on it and then it's got a side garden that is big enough to get planning which is still currently going through as soon as i get it it will be on the channel and that is going to be another three bed bungalow that adds again another 300 to 350 000 to the plot value just by acknowledging what land or access is available number two is refurbishment of the property now this will depend on your overall budget but if you've got a lower budget concentrate on either the kitchen or the bathroom that seemed to add around eight percent of the overall ten percent uplift to a property so a property where you spent money on a good kitchen will get around eight percent higher in terms of offers than anywhere else which is absolutely crazy number two is the bathroom and number three is pretty much anywhere else so something just to be thinking about there next is a general makeup of the property so i don't mean like new kitchen and everything like that i mean new carpets throughout and a painting that would be about four or five grand um for a typical property and can add again up to ten percent to the value of a property and number three this is the worst way of adding value historically but looking at the electrics and the gas so getting a cp-12 which is a gas safety certificate and an eicr which is the electrical certificate and that will bring out things where you can improve the property the reason i say historically this doesn't actually improve it much is because you can't actually see it but with all of the environmental awareness that's gone on over the last couple of years i've actually found a lot more people interested in that sort of thing and the environmental impact that they're having number three is the outside what sort of acreage do you have with your property all right maybe not acreage but what space do you have with the property and this really comes in two major ways number one could you put a drive on believe it or not it could add up to five percent to the value and considering a drive including the council getting around can cost only five six grand depending on the area that's a lot of value we're doing it on my mom's property right now and it's going to increase the value of the property by about 50 000 pounds what now there is an area where parking is getting harder and harder but getting a parking space on a drive is worth so much money to a majority of places especially as the available land that we can build on is getting more and more restricted but even if you don't have that tidying up the outside areas something i never used to do but now i do is i allocate between a thousand pounds and fifteen hundred on a buy to let or a flip property just to tidy up put some pebble dash down do does it increase the price that people are willing to pay on the property i'm not so sure about that but it definitely makes it easier for somebody to visualize living in the property making your house their home and what that does is creates a bit of a bidding war effect on the property driving up the end value next is the layout of the property so the layout of the property is really about the room allocations here there's so many times i look at mentees properties we're about to buy about to have a two bed but they don't realize that because of the layout of the rooms and the space you could actually move one of the walls and it would immediately become a three bed and a solid three bed property in burmanzee when i was looking a couple of years ago on this we were talking about half a million pound one bedroom flats where we'd move the bathroom where the front room is and then make another bedroom and do a kitchen diner type situation and that would be the main living area creating a two bed spending about a hundred thousand on it so 600 total and making it a two bed worth 750 000 pounds so not doing a dramatic piece of work on it just by moving that one wall and looking at the layout of the property you create a dramatic different outcome in both the effect size and price of the property number five and this really only relates if you've got a leasehold property is check how long the lease is and the terms around it people miss this out a lot but actually if your lease is below 80 years that's when people start getting a little bit funny about it and actually it'd be very cheap for you likely in comparison to the value of the property to get it extended so what you can do is you can issue something called a section 42 that will start a conversation with your freeholder and you can start negotiating the extension within this as well you can look at the terms of it and so if there are archaic terms like it doubles every 20 years or anything like that in ground rate and service charge that is your time to negotiate more favorable terms on your behalf whilst you're negotiating that extension making the overall property more valuable to a when you refinance it or indeed your end buyer finally within this you can split titles so i mentioned splitting up into individual flats but also if you've got a block of apartments or something like that that has the freehold a lot of people own this with the freehold say it's 10 units and they got it for 90 grand but actually they might be worth 110 000 per flat it costs about a thousand pound for each lease but you spend 10 grand getting them split up then you can sell off the apartments individually retain the freehold and then sell that elsewhere as well suddenly you've made over a hundred thousand pound profit on top of what you already had or indeed you can individually refinance those units again adding value to your bottom line so they are six of the main ways that i found to add value to property if i missed any out apart from buying a good price or waiting let me know in the comments i'd love to add more value to you guys as we're going through if you are new to the channel it would help out tremendously if you want to subscribe and hit the notification bell and on your way to the next video if you could likely tap the like button and i'll see you there