If there is one area where most new investors fall down it is probably professional advice. many novice investors, quite rightly, try to keep a tight control on finance and expenditure on projects and it is sometimes tempting to do without
* the full structural survey costing £1000 or
* do the plans themselves saving money on architects fees or
* find their own mortgage without paying comission to a mortgage broker
All the above items have (and will) cost investors losses of many times the cost of the small initial savings, in fact many have gone bankrupt simply from not taking professional advice when it is required. Some have gambled on paying for professionals and won – but many more have lost, if you want to make money by gambling then property investment probably is not the best choice!
At the minimum, when buying a property the mortgage lender will require a “valuation survey”, this is not a full structural survey merely a rough idea of the valuation of the property designed to protect the lender (should they ultimately have to reposses) not the borrower, that the mortgage lenders make you pay for – nice twist! Many buyers go no further than this when buying property and its fair to say that in a newer property with no obvious problems this can sometimes be a gamble worth taking as anything major would be noticed by surveyor even on a valuation survey. However on an older property/or any property where you intend to do any major refurbishment, building works or extensions/conversions, a strucural survey is a must. A full structural survey is much more expensive than the compulsary valuation but could save a lot of money in the long run.
Architects and Planning Consultants
A good architect or consultant is required for all renovation and conversion jobs, the fees are worth it just for the knowledge of local planning officers and regulations, the potential resale price of the project and the peace of mind that the expensive building works you are going to pay for will comply fully. Also some consultants can offer a fully inclusive service where they can deal with the hiring and firing of all sub contractors required to complete works, saving a lot of hassle, however this service does not come free and you will have to weigh up the costs against potential profits.