This is a solid line of business.
The trouble is that everything goes according to the old standard. Buy, renovate, update the interior, tidy up the site and sell. Yes, that's exactly how it should go. The only question is how to renovate, what to fill with, what landscaping to do and how to sell. But the devil is in the details.
What is luxury real esate
If you approach the renovation exactly the same way as the construction of unique villas, then love. Real estate can be turned into a masterpiece. Design is not a price, design is an idea. Ideas are few and far between. A competent approach to decorating creates exactly the same effect as described above.
You just need to have a certain talent, and then the magic will come: the ugly duckling will turn into a beautiful swan.
This is especially true of Spanish interiors, which are often simply absent. Although I think other countries are not much different. We have devoted many articles to this.
Read “How design affects the value of property”
What is luxury real esate
Investment in old villa reconstruction
Many people think that renovation of old houses requires a lot of money. Repairing will also require a large budget and there is no point in investing, because such costs may not pay off. Therefore, most owners follow a well-trodden path. They reduce the value of their properties, often based on the advice of their realtors, in order to sell it faster.
However, this is not the case at all. In Europe, it is becoming a business for investment funds. They scan the market with the sole purpose of finding properties that could be bought as cheaply as possible, make repairs, change them externally.
The only goal is to create a new value for such a real estate and sell it at a good rate of return. Therefore, as a rule, it is such companies that win, and the losers are the property owners who, with a competent approach, could get their property so updated and changed that its market price could be much higher than they expected.
Transforming old villas into an attractive investment is one of the Investment Club's business ideas. For all the seeming simplicity of the issue, it's not all that simple. Of course, with a large budget, you can remodel and decorate any property, but it requires a solid investment and is not suitable for every property.
What is the secret here? The secret is that by applying to this type of business our principle of creating new value for such renovation, we transform this idea, in fact, into an investment project with a high rate of return. How is the value of a property created? Don't be lazy to read the article that explains it in detail. "WHAT IS THE MOST PROFITABLE INVESTMENT IN REAL ESTATE?"
Having made a good profit once, the owner of such a property is unlikely to want to step aside. Most likely, he will continue to be interested in part or all of his money with us.
So what is the secret of success here?
First of all, such a project must belong to the luxury category. The old villa used to be exactly in this category. One of the most important criteria for creating a new value is its location. This will largely determine the sales price on the market, but not only that. Not all properties have an excellent location. However, even then, it can be sold for much higher than what you are originally asking.
Investment Club is a great expert in all these subtleties. It has its know-how: everything we supply for all investment projects, we produce ourselves. What we do not produce, we bring in our partners. They are also producers.
The Investment Club deals only with luxury projects, because this segment has the least competition. We design new properties with a level of design that is almost unavailable today. We are not limited to anything in production. Whatever is invented can be realized.