How to maximise the value of your luxury property purchase

We are often asked if there is a secret to successful luxury property investment. The short answer is, there is no secret – but every exceptional residence begins with meticulous planning. From understanding the costs involved and realistically assessing the timescale, to appreciating the scale of project, read on for our guide to maximising the value of your property investment.

Where do I start?

Investing in property is very much like starting a business – you need to put a detailed plan in place. Before you buy, it’s important to understand your objectives and your vision, and create a plan to assess the quality of the investment. This is the point at which we would conduct a feasibility study to address the project risk, taking into the account the setting, location, planning risk, added potential, costs and timing. These are the key parameters that should be defined at the start of every project to establish whether it is a good investment or not. And if you’re not based locally, or don’t have the time to attend to all of this, you need a partner working for you and looking after your interests.

What are the key ways to add value?

Firstly, create more internal space. If you can extend out, create a basement or add a floor, you’ll add value. Secondly, improve the space and function of the property. Thirdly, you should look to add emotional value that will resonate with the future buyers. With competition rising in burgeoning property markets like London, interior design is becoming increasingly important in order to create a property that will stand out. Not only will it add value, but it will also sell more quickly. It’s all about wow factor!

What are the main costs involved?

You need to understand from the outset where the money is going to be spent so you can ensure you make it back on completion of the project. The project plan should include all pre-construction costs – consultants, planning applications, the survey, financial costs, inflation and construction risk. It should also detail the costs for the actual works, the structure, partitions and the internal finishes. Understanding the variation in value between different products and where you should spend money to maximise your return is key for a successful investment. So, having the input of an expert is worthwhile at this point. We provide our clients with a bronze, silver and gold option for fixture and finish so they can see exactly how additional cost impacts on the quality of the item and make an informed decision at the planning stage.

How can I keep the budget under control?

Good planning and detailed budgeting are key. As such, ensure that you have identified the risk and implemented measures to reduce and minimise those risks. For example, on a renovation project, it’s key to strip out as early as possible to understand the existing structure of the property. By waiting too long, you run the risk of having to redesign your project to adjust to the actual structure you’re working with. And this can have a far-reaching effect on your budget. Delays in the process can have a substantial impact on your costs, so make sure you have allowed for potential risk in your initial budget.

Once the design has been approved and a contractor is on site, avoid making any changes. Not only will it delay your project, but it will cost you money and can affect the overall quality of the finished result. Each project we oversee might have between 30 and 50 specialist installers and craftsmen working on it. Disturbing the sequence of their work will impact on costs and timescale. Hence, it’s better to invest time at the start of the project in planning, rather than making changes on site where you will be paying a weekly cost for your main contractor’s staff and the site installation.

Any final advice?

Never underestimate the importance of the pre-construction phase of your project and taking time to plan exactly what you want to achieve. This is where the value of benefitting from the services of the right advisors cannot be underestimated. They will be able to provide a professional feasibility study for your project, which will identify any risks and planning challenges, as well as assessing the value-added potential of the investment. It will also work out the construction budget, map out the timelines and calculate the return on equity. At this point, you will be able to begin the journey to maximising the value of your property investment.

At Rive Gauche our service is holistic – we can manage your project from concept, when we will conduct a feasibility study assess the investment’s potential, to completion. The combined efforts of our expert in-house team and hand-picked trusted advisors are dedicated to achieving a high return on your investment; so, if you’re ready to discuss your project, do get in touch with Nicolas Roux.