Why upgrading an investment property has hidden risks

November 3, 2008 by Mark Pollak

Hello and welcome to our blog. It's good to see you.

With the credit crunch continuing to bite, a few property investment professionals might turn to upgrading their assets rather than selling them. With prices in many western markets on the slide, some owners could look to improve homes and so support or even increase values when the time does come to put them up for sale.

A recent study by the insurance company LV= has suggested around one million UK houses are now being redeveloped rather than put on the market.

Careful who you hire to do the work though – that flash new kitchen might well belong to someone else.

An American man was recently booked with possession of stolen property for allegedly trying to renovate someone’s home with items taken in at least three burglaries.

Among improvements to the house, which was set to be lived in by his girlfriend, were $10,000 worth of cabinets removed from walls and carpeting cut from floors of other homes, said the St Bernard Parish Sheriff’s Office, Chalmette, Los Angeles.

‘Girlfriend has not moved in’

Jason Hartwick, 29, of 2401 Despeaux Drive, said he bought the items from other people, police said. Officers added the cabinets were actually removed from a home before being installed in the second property, which the girlfriend has apparently not since moved into.

Recognise this kitchen sir?

Hartwick was only put in the frame after the owner of the stolen cabinets had them tailor made at a store and asked officials at the shop to notify him if anyone came in looking for trim and accessories if they happened to be put into another kitchen.

Low and behold, someone from the store called and said someone had been in asking about further work for the same style of cabinets.

[tags]real estate,real estate investing,property,property investment[/tags]