Though business relationships might have been strained in the wake of Brexit, that doesn’t mean interested parties can’t renovate projects overseas. In fact, the UK government has offered a pledge where EU citizens who resided in the UK prior to Brexit have the right to move away and return without penalty. This means British people who live in the EU have the right to travel back and forth freely. This is promising for those who aspire to renovate projects abroad, but can be difficult considering the socioeconomic differences across the border.
By Ella Hendrix
There are limitations when moving abroad, consolidated by the perception that people’s overseas property interests have been forgotten. Problems are also presented by the rurality of areas, resulting in a lack of power available - though there are now businesses that provide products that can counteract these issues, like water tanks
and petrol dispensers. This will ease some of the difficulties associated with the process, while providing functional practicality.
If you’re curious about renovating a project overseas, you’re probably seeking advice on how to best proceed. If so you’ve come to the right place, because this article will offer some top tips, serving as the ultimate guide to fulfilling your requirements.
A successful overseas renovation is highly dependent on location. This should be the first thing you look at prior to venturing out to you country and location of choice, especially since location is the one variable that can’t be changed. As an essential aspect of any renovation project, prospective buyers/renters will appreciate a location that’s near shops, cafés, and other appealing amenities. You’re much more likely to have success if you can develop a property that offers convenience.
Check the structural basics
The house should be structurally solid, because structural issues can wreak havoc later on. Problems with the foundation of a building should ring alarm bells, and though you can cover up the cracks initially, what about the long term implications?
With structural faults, the valuation of your property will be lower, and it will continue to devalue over time. If you buy a property and later realize you have to spend considerably to improve the condition of building, this is a huge disadvantage.
Identify your target buyer/renter
If you’re investing in a property for personal use, this is less relevant, however since you’ll probably rent it out at some stage, this is a critical consideration. You should do your best to visualize your resale buyer, and engage in works based on what’s suitable for them. With your target customer
in mind, you can plan renovation works accordingly. For example, if you determine your resale buyer is likely to be a retiree, you’ll probably make different decisions than if you’re reselling to a family. This influences both the location you pick, and most importantly your work schedule.
Set a target budget relative to the current market
It’s essential to set a budget that aligns with the value you can get for the property, relative to the market of the region you’re renovating in. Once your restoration project is complete, it’s important you can receive enough money from buyers to justify a profitable venture. For example, if you seek a profit margin of 50%, buy a house for $50,000, and invest another $50,000, your target market must be capable of purchasing the property for $150,000, or at least be able to pay enough rent to cover your costs. Your total investment should be at least 20% less than your expected resale price, meaning you could immediately sell your property for profit upon completion.
Remember that any international payments will be subject to moving exchange rates
. Seek guidance from a currency specialist
when budgeting, to ensure you know the exact costs in all currencies involved.
Invest in items offering returns
It’s worth spending on items that are worth more at the point of resale than you paid for them, including modern kitchens, counters, and updated bathrooms. Avoid costs you’re unlikely to recover, including expenditure on specialty hardware, high-end cabinetry, and bookcases. Keep track of your indulgences to avoid eating into your profit margin.
Go local for products and materials
Chances are, the area you’re renovating in offers cheaper materials than your country of origin. If so, go local for materials
as much as possible. This will keep costs down, and ultimately improve your bottom line. You may gain access to brick, ceramic tiles, and wood at affordable prices, but be certain you're familiar with how business is conducted there before you dive in. You’ll learn lots on your journey, learning affordable methods and techniques for achieving success.
We hope you have found this article informative, and are one step closer to achieving your renovation dreams. If you have any questions, or would like to contribute to the conversation, please get in touch
[Cover image Ryanair Image Gallery 2018.]