Buying a house is a big deal, especially for investors! But even the experts can make costly mistakes. The Telegraph spoke to some of the biggest names in property and they shared their most expensive blunders, so you can learn from their mistakes.
Listed Building Woes: “Don’t Fall in Love!”
Property investor TJ Atkinson thought he’d found his dream home in a quirky listed property in Kent. He planned to turn it into his forever home, but he quickly learned that listed buildings come with a whole lot of red tape and a hefty price tag.
He had to wait for multiple rounds of planning permission approvals and his initial architect had no experience with listed buildings. The restrictions meant his plans had to change, and the cost skyrocketed.
“I didn’t fully understand the small, intricate requirements,” he explains. “The specialist materials and labor pushed the cost to nearly £200,000, instead of the usual £50,000-£60,000.”
Lesson learned? Leave listed buildings to the experts! Planning requirements are complex, and it’s easy to lose money on these projects. Don’t get emotionally attached to a property – always look at it through an investment lens.
The Builder Who Walked Off With The Job
TJ also learned a costly lesson with a loft extension in Erith, Kent. He paid his builder 50% upfront, and when the sub-contractor asked for another 25%, TJ refused. The builder walked off the job, leaving the taps running and the house flooded!
Lesson learned? Get a contract with your builder, check out their previous work, and talk to previous clients (without the builder present). And don’t pay more than 25% upfront!
“The Cops Called!” A Buy-to-Let Horror Story
Jon McCrory thought he’d found a bargain in a £70,000 house in Salford. He didn’t know the area, and the property was an hour away, making renovations a real pain.
He soon found out that the area was a bit rough. One day, the police called to tell him that his tenants were running a cannabis farm! The house was trashed and he had to sell it.
Lesson learned? Buy close to home, research the area, meet your tenants in person, and do regular checks on the property.
The Grade II Listed Surprise
Property developer Arsh Ellahi thought he was onto a winner when he found a building in Wolverhampton that had been stripped back to the bricks. He planned to convert it into apartments, but he was caught out by a hidden surprise: the building was Grade II Listed.
He had to reinstate the original wooden windows, which cost five times more than the UPVC replacements he’d ordered.
Lesson learned? Check with the local authority before starting work. Just because your neighbor was able to make changes doesn’t mean you can too.
Hidden Drainage Disaster
Emma Morby is a seasoned property developer who bought a barn conversion in North Devon. She didn’t have time for a land inspection, and it came back to bite her.
The land wouldn’t drain properly due to the clay soil. She had to wait until summer to get the drainage sorted, and it cost a lot more than expected.
Lesson learned? Get a land survey (GIS survey) and a percolation test. These tests will tell you how well the land drains, and help you avoid unexpected costs.
By learning from these property experts’ costly mistakes, you can avoid similar blunders and protect your investment.