Buying a property to rehabilitate and transform it into a luxury home is an increasingly popular practice. Investing in an old house as a starting point for building a luxury home can be a good strategy.
At the end of the work, you will be able to live in the property or sell it, multiplying your investment. Discover, in this article, the main advantages of investing in a real estate renovation to obtain a premium segment home .
3 Care to take when choosing an old house to rehabilitate
Choosing to buy an old property to renovate can be an excellent bet, but there are important points to consider to avoid making a bad investment.
1. Find out about the year the house was built
In the first phase of prospecting, this point is important. Knowing the date of construction will give you an idea of the methods and materials that may have been used. This data is useful for calculating everything you will have to spend on renovation.
2. Check the structure, facade and roof
When the time comes to visit the house, you should pay close attention to the structural details. Analyze all available information about the foundations, especially regarding their state of conservation.
Also pay attention to the facades and roof. If you identify signs of rust, cracks or other damage, write everything down so you can better calculate repair costs.
3. Carefully analyze the elements to be restored inside the home
Ask the real estate agent about the condition of the property’s networks, that is, plumbing, electricity and sewage. Gather all the information on technical inspections or interventions that have been carried out over the years.
Inside the house, check the condition of the floors, ceilings, doors and windows. Also look for interesting architectural features that you want to preserve. This assessment will help you get a concrete idea of everything that will have to be done to turn the property into a luxury home .
4 Advantages of converting an old property into a luxury home
At a time when demand for luxury properties is high and supply is scarce, rehabilitation for sale (or for housing) is on the rise in Portugal. Renovating can be an advantageous solution to transform a property into a luxury home . Find out why:
1. Lower purchase price
The older a house is and the more work it needs, the lower the purchase price will be. The value of a home decreases whenever there are repairs to be made. Do the math carefully on the investment required to convert the property into a luxury home and make your proposal to the real estate consultant.
2. Good location
Typically, old properties are located in central areas of cities, close to commerce and main services. At a time when the possibility of building in these locations is very limited, or almost non-existent, this factor is positive for future sales.
3. Spacious rooms and outdoor spaces
In more modern properties, areas tend to be smaller, contrary to what happened in the construction of old houses. In this type of property, the spaces were designed for large families. Thus, the living and dining rooms were considerable enough to host large gatherings.
Furthermore, most old houses have a small garden at the entrance, or a green space at the back. All these points are currently highly valued in the luxury real estate market .
4. Attracting international investment
Foreign investors appreciate buying luxury properties that are ready to live in and that have unique characteristics. This is one of the reasons that attracts them to buy a house in Portugal .
A property with old and elegant architectural features, but offering all the amenities of modern times and premium- level finishes is very appealing. Take advantage of this market differentiation factor when promoting your luxury home after renovation.
By rehabilitating an old property to convert it into a luxury home, you will be able to recover your investment with good profit margins. On the other hand, you are contributing to the appreciation of the city where you will invest through real estate renovation .
If you like the idea of investing in the restoration of a building with a view to creating a luxury home, visit the DS PRIVATE blog and learn about our areas of activity in this premium segment .
