Article on cheap Property 3 Pitfalls of refurbishing cheap Property overseas Old farmhouse Property for sale 25,000 euros: can this be really true? How many times have you seen a property advertised for such a low price on the Internet? The answer is often. Almost every agent has one for sale. Is it a lost leader or a sprat to catch a mackerel? In some instances it might be but generally there are such properties available. The real issue is, in what condition are they and how much will it cost to refurbish them to a standard where you could happily live or place it with confidence onto the market. Let us consider a few facts which I have gathered in recent years, irrespective of which country you might wish to consider, the rules and regulations may change in each domain but the basic principles are the same to prevent you buying a "Pig in a poke". Firstly, when looking at a property at such a low price there has to be a downside. How great is this downside? If it is a ruin then you probably will need planning permission to rebuild it to your specifications unless you restore it exactly and I mean exactly as it was. In the case of the latter suggestion if the ruin predates say 1960 then it is unlikely that there will be indoor bathrooms and that the bedrooms will be tiny. In which case restoring the original, how ever charming the idea, will not necessarily meet the expected standards enabling you to gain any value.Therefore planning permission to extend and expand the original habitation is required. In some cases retrospective licenses are feasible but carry a certain risk, as should you have not kept to particular local practices the permission may not be forthcoming, the fees are unknown and in some cases you might be told to knock it down! For example knocking down the ruin of a quaint old farmers cottage and replacing it with "Southfork", is not a great idea if you do not have permission to do so. Before you knock anything down be aware. Once demolished, you may not be able to replace it with anything! Then you will just be the proud owner of piece of land but not a plot Always leave one wall standing, preferably a back wall which you may need to incorporate into the new design. The best scenario is to apply to the local authority by using a local architect with a good reputation. One who lives in the local community and knows the individuals at the Town Hall personally is the best candidate. Downside-time frame. This could be anything from 2-9 months! Now lets consider main services. Many of these cheap properties do not have water or light, let alone internet access or main drains. The new generation of bio-disc septic tanks enables you to get over that problem easily. Internet access maybe something your clients wish to escape from or, have enough mobile technology to satisfy their demands. However water from a well is fine if you can make it work with an electric pump.A bucket on a rope may seem a quaint idea, but not in practice should you need a shower and fast! Without electricity modern life becomes a little unbearable! This is the first lesson to learn in this scenario, how can I get a power supply into my property? Do not listen to the agent when he points to a pylon carrying electricity in the valley below. It can cost 10-20,000 thousand in most currencies to bring it to your gate. As a result you should double the price of your purchase as an estimate to bring in services. If you then consider it might take a few weeks to accomplish, then think again. You could be waiting years not months. Refurbishment may well be what you are looking for, rebuilding, maybe not. Ideally pay a little more and do less. Pay a little more and take less risk, especially in a foreign country. Do not judge by your own standards or assume anywhere in the EU or a potential country coming into the EU, will be easy, it will not. Pay a little more and then you can easily estimate the refurb price. After all you should by now know the cost of doing new kitchens and bathrooms, and if you dont, then either find out now or give up this dream before it hurts you. Having armed yourself with this information you can quickly and easily evaluate your purchase, as this is the major cost involved in updating tired accommodation. Again examine the power situation. How old are the existing fittings? A re-wiring operation may cost a lot unless you find the right professional at the correct level of pricing. Just test them out, if there is a micro-wave available take it along and plug it in. the initial surge from this unit will normally be a good tester to the trip (If one exists!), especially when other available appliances are also switched on! Perhaps an electricity bill might indicate how large the incoming supply actually is, as without a 5.5 supply you will not be running many appliances before you hit big trouble.(7.5 is ideal) Now you have the major problems solved look at the market place. Go to another agent and find out the comparable cost of a refurbished unit in close proximity to yours. Make sure the difference between the purchase price of your potential property plus the estimated cost of refurbishment still leaves a discernable margin for your profit or your time. Hugo Raymond@mypropertypal.com |
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