During the property ‘boom’, there wasn’t much of a difference in property values between modernised and un-modernised houses. But during the current financial situation it is much different according to Savills, the property experts.
In a report recently, Savills said that neglected properties are selling at 10%-35% less than fully modernised homes. This difference is great for those looking for a good property investment.
With these savings available, the extra cash flow can easily be used to do the properties up and bring them up to the equal standard of the modernised properties.
Therefore if you are clever with your property investment choices, you could increase your cash backs and still save on renovations.
These types of properties, however, are limited to cash-rich investors who have the initial funds to put into doing the work. But with some expectations of a further fall in property prices, investing in neglected properties could be the new way to expand your property portfolio.