Restoring or Renovating a Period Property

At one time, period properties requiring renovation or restoration could be snapped up at bargain prices - particularly in rural areas. Unfortunately, the majority have now been restored and the ones that do remain are by no means cheap. Such is the interest in rescuing old, run-down houses and restoring them to their former glory that even building that are almost in ruins still tend to far exceed their asking price.

Assessing the Costs

If you are considering buying an older property with a view to restoring it, do bear in mind that this may cost much more than building a new house, especially if you do it properly using reclaimed materials. Before buying, it is essential to obtain a full structural survey and work out an accurate estimate of the costs.

Although many people think that doing up an old house is a cheap way of buying a property, renovation costs can be very high and are invariably higher than you may plan for - a major restoration rarely comes in on budget.

One of the most common mistakes that people make when buying a restoration property is to pay too much for it and to underestimate the cost of the work required.

Six Steps for Successful Budgeting

1. Make sure that you know exactly what you plan to do before starting work.
2. Arrange for a number of builders to inspect the property and provide quotations.
3. Find out how much each job will add to the value of the property so that you don't waste money doing work that adds little or no value.
4. Multiply the final quotation by 25% to budget for unforeseen problems.
5. Obtain an accurate valuation of what the restored property will be worth.
6. Make sure that you don't pay more for the property than the estimated value after restoration minus the cost of renovation. You will also need to take into account your contingency funds, the fees associated with buying and selling, and any taxes that may be applicable.