Buy to renovate, good idea or bad?

Many of our clients have purchased a property in order to renovate and sell it on, with the idea of making a profit. Any property that is worth investing in tends to sell very fast, as they benefit from certain features that make them stand out and will help sell it on.

What to look out for

One of the key factors is location (as with any property). If the property is in a desirable location, you already have a good chance of selling it in the future. Certain urbanisations that were built in the 70’s, for example, are very well positioned.

Next to Cristo Beach and Estepona port you have Kai Alde, popular for its stunning views, tennis court and Olympic swimming pool. These properties are within walking distance to amenities and would work very well as rentals or holiday homes.

In Estepona old town there are also many houses that need renovation. However, you need to make sure that it’s big enough, has some outdoor space if possible and benefits from natural light. There are also building restrictions which you need to know about. We recommend using a local architect to survey the property beforehand.

The beautiful streets of the village still attract buyers and holidaymakers and if you do your research you may well find a diamond in the rough. If you have never bought in Spain before, make sure to research the costs involved and factor these into your budget before looking.

The process

Once you find the property you wish to purchase, it’s a good idea to take a reputable local builder along with you. They can give you a very good idea of the possibilities and costs involved.

Try to add value where possible. We have seen some renovated apartments with stunning views that have had the balcony enclosed! A potential buyer (or holidaymaker) would most probably want to sit outside in the sun rather than inside in the living room.

Outdoor space, bright interiors, open layouts and easy maintenance are key factors to consider. Open plan kitchens are very popular now and can significantly change the space and feel of a property. When furnishing, keep it simple, neutral and modern.

If you don’t have contacts for local tradesmen, you can ask your estate agent to recommend a building company or even ask the local Facebook community. Many people are happy to share their experiences. Get several quotes and remember to apply for a building licence from the Town Hall before starting any work.

Keep your invoices, as you may be able to offset these costs.

Put it on the market

Once your property is ready to go on the market, contact your estate agent to obtain a realistic valuation. While you will consider your overall renovation costs, the price must still reflect the current market.

A realistic valuation will give you the best chance of selling quickly and achieving a good return on investment.

Another option many of our clients choose is to rent the property through Airbnb. Rental demand in the area is strong, both for short and long term lets. If you are not living in Spain, a local maintenance company can help manage cleaning, guest arrivals and property maintenance.

After more than 20 years selling property in Estepona and the surrounding areas, we have built an extensive client network, many through recommendations and repeat clients.

We have the experience and local contacts to guide you in the right direction if you are considering taking on a renovation project. This year alone we have sold more than twelve properties in need of renovation, and our buyers are now busy transforming them into beautiful homes.

Featured image: the before and after of the kitchen one of our clients renovated.