Overview – The Bungalow Strategy
Overview – The Bungalow Strategy
It might come as a shock to you but there is in fact a strategy that is devoted to bungalows. There are many different parts and factors that form this strategy that you need to be aware of.
What is the bungalow strategy?
The first thing to mention is that we live in an ageing population, which means that we have lots of people hitting the retirement age all at once. Therefore, bungalows are a sought-after commodity. Something that you may not know is that actually 30% of our population want to live-in single-story dwellings and the reality is that only 2% of our housing stock is actually bungalows. Therefore, there is a supply and demand situation going on where there is a lot of demand but not much supply.
Typically most people live in a bungalow for around 20 years and during this time they rarely have any maintenance do to them so by the time they come back onto the market they are usually ready for a good refurbish and modernisation and you will notice this when you begin looking at bungalows to buy. This means that there is great opportunity to add some value to the building.
Another thing to mention about bungalows is that they typical come with a good amount of land because they were built at a time where space was less of a commodity. Therefore, this allows you so much opportunity to expand or even put an additional dwelling on the same land. This is what makes the bungalow strategy such a great strategy.
This whole strategy is about securing bungalows that you have got the potential to maybe,
- Add an extension
- Add a dwelling
And really create something that is up to date and modern as the people who buy these bungalows are normally looking for something that is ready and done, something they just move straight into.
Why should you consider this strategy?
One of the great things about this strategy is that it is relatively easy and straight forward. If you have no experience and you know very little about property, this might be a strategy that would be worth considering because you can keep it as simple as you like. For example, you may purchase a bungalow, renovate it, and then sell it.
These types of developments generally have quite quick turn around, you can buy them and in a matter of weeks renovate them ready to sell on, so if you are looking for a project with a more quicker return then this is one of the more speedy models. Although I strongly believe that no model actually gives a quick return. This is also a great strategy for those of you who want a low investment threshold.
Who is this strategy for?
On the one hand this can be a relatively straight forward strategy therefore its great for people just starting out in the property sector. On the other hand, you could choose to turn it into a major development by building extensions on it, title splitting the land, building new dwellings, or even splitting the original bungalow into two separate semi-detached houses.
The options are endless. Therefore, it is also good for those of you who are more established and want a more complex development.
This is also a good strategy for those of you who are a little it more time poor. It is the type of strategy that can be worked over evenings and weekends. So, you can do this strategy whilst you are working full time.
Where can we employ this strategy?
This is a strategy that can be employed anywhere around the UK. However, it all comes down to the need and demand in certain areas. You need to be thinking about what areas have a supply of bungalows. This strategy will also work well in high retirement areas. You might also want to consider areas that are safe and have a community feel because your end buyers are going to be looking for a safe lifestyle.
When should you employ this strategy?
The answer to this question is right now. Currently there is such a strong demand for these homes, and it will provide you with the opportunity to add great amounts of value back into the property space. This could also be a model for those of you who are wanting to take on a buy-to-let property because bungalows are an absolute commodity in terms of today's market. So, if you hold on to these type of properties, they are likely to go up in value. So, remember anything that it sought after or really desired will generally inflate in value compared to something that there is a big supply of.