Who, if anyone, is doing well in the current downturn in the real estate market?
Tony Clarke, MD of Rawson Properties, said that those equipped to undertake fast turnaround refurbishments are cashing in right now in a big way.
'What we are seeing now,' said Clarke, 'is refurbishment investors moving in, buying homes at a very good price, doing them up and then reselling at 10 to 15% profit in a month or two. It is a great way to make money if you can do it'
The secret, said Clarke, is to work fast and avoid overspending on the finishes and features.
'You have to look at what other similar homes in the area are selling for and make sure your price is lower or competitive. You have, too, to ensure that your price significantly beats the replacement cost'
This, said Clarke, probably means that such features as travertine tiles, marble countertops, cherry wood cupboards and laminated flooring and the like will have to be cut out '“ 'but you can still create an attractive house with less expensive materials'.
Refurb investors, said Clarke, often allow the previous hard-up owner to stay on in the home paying a market-related rent while the work goes ahead. This, he said, works to everyones advantage '“ it ensures that the house is protected, it allows the owner time to find alternative accommodation and it usually means the seller is able to get a better price than he could if the home was repossessed.
