Property expert warns renovation projects can lose thousands if one thing is missed

Buying a house to renovate and then sell on can be a lucrative money-maker, but projects can sometimes go off the rails.

According to property investment expert Terry Fisher from Sold.co.uk, there’s one critical component that every renovator needs.

“Property flipping refers to buying a house or flat, renovating it to increase its value and then selling it on for a profit - usually in a fairly short amount of time,” he said.

“If you have the means to pay a deposit, mortgage and renovation costs, then you can certainly look at starting a property portfolio.

“But there’s one thing you need, whether you’re a beginner or a seasoned developer, and that’s contingency. You need to have some budget squirreled away in case anything goes wrong.

“Projects without contingency have seen people lose thousands of pounds, including those who had a portfolio of properties they have done up and sold for a profit.”

A contingency plan acts as a financial buffer, ensuring investors are prepared for inevitable surprises that come with buying, doing up and selling a property.

Terry recommends setting aside 10 to 15 per cent of the total renovation budget to cover unforeseen costs.

He added: “Many people focus solely on the purchase price and expected renovation costs, but fail to prepare for the unexpected.

“Without a solid contingency plan, projects can hit a brick wall. From hidden structural issues to delays in planning permissions to issues like Japanese knotweed which might be hidden during certain seasons - unforeseen expenses can snowball.”

A proactive approach is the key to a fruitful property investment and can be more important than the appeal of the final project.

“Location is crucial when it comes to investing in real estate, as is the quality of the work, but the key to a successful property flip is smart risk management,” explained Terry.

“Those who take time to plan for the unexpected will ultimately come out on top.

“Have a strategy and prepare for setbacks before picking your colour palette or knocking down walls for an open-plan kitchen and living room.

“Property can be a rewarding investment but it requires careful planning and a willingness to adapt to challenges.

“The success in your venture lies not only in the renovation itself but in your ability to navigate risks and safeguard investments.”