Buy to Sell Property Guide

Buy to Sell Property

Buying a property to refurbish and sell with the expectation of making a profit is becoming an increasingly popular form of investment and potentially more secure in an uncertain stock market.

Due to lack of surplus funds many novice or small-time investors typically have to live in the property they plan to resell and so this can cause some problems particularly if they get too emotionally attached to the property. Only the more serious speculators (often builders) are in a position to take on dilapidated or run-down properties and refurbish them for resale with the properties remaining unoccupied until they are sold.

 

If you plan to live in the property yourself, remember to keep the buyers' needs in mind when making any improvements and don't overspend. You are in this to make a profit. For example, don't improve areas of the house which don't need improving, don't overspend on fixtures and fittings and keep the decoration simple.

The good news for owner-occupiers is that the value of the average property is continuing to rise and owner-occupiers are not liable to pay any tax on the profit they make from the sale of a property (owners of buy-to-let properties are liable for capital gains tax). For more information about tax on property investments, see our tax guide. www.investments.co.uk/property/tax_guide

If you decide to a buy a property which needs a lot of work done on it, remember to calculate the additional funds you will need to carry out the work. Paying someone else to do the work for you can be expensive, but if you do not have the skills this will be your best option if you want the work to be of a high standard. Potential buyers will be put off by shoddy work and it may affect the selling price (and your profit margin).

For advice about arranging a second mortgage visit us at www.mortgages.co.uk/buy-to-let

 

UK Investments - Financial, Property & Other Investments - 1998-2008

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