Renovating a House: How to Turn Properties into Great Opportunities

The main advantages of rehabilitating old houses include preserving the original history and architecture of a city, reusing old materials that contribute to a more sustainable project, and transforming an old house into a unique property with its own identity.

The team of professionals at Engel & Völkers, with vast experience in the Portuguese market, can provide an initial evaluation of the property, helping you determine its real value both before and after renovation. This detailed analysis is essential for understanding the true potential for resale and ensuring that the investment will be profitable.

Additionally, Engel & Völkers is the perfect choice to handle the sale process of your home, with a consolidated network and a specialized team ready to maximize your investment returns.

However, to turn a renovation into an opportunity, you must be aware of the challenges and how to overcome them. The main challenges are cost and time, which can be affected by unexpected issues during construction.

Tips to Turn Old Houses into Great Opportunities

1. Starting Point: Initial Visit and Evaluation

First and foremost, an architect must visit the property for an evaluation. This professional will analyze the essential construction features of the property and outline the project.

Whether you’re buying a house to renovate or want to renovate a property you already own, it’s important to have a specialized technician visit the property from the outset.

This is the only way to realistically plan and budget the entire process, as well as to determine whether the project is feasible.

1. Pay Attention to Renovation Restrictions

Old homes ready for restoration are usually located in historical centers, which have their own rules. Be sure to inform yourself about the specific limitations for each area and validate all necessary administrative permits.

1. Hire an Experienced Construction Company

The challenge of renovating old houses can turn into a headache if you don’t entrust the work to an experienced construction company. Saving money at this stage can lead to future issues, so invest wisely to ensure a successful renovation and business opportunity.

1. Take Advantage of Rehabilitation Support Programs

There are financial products in the market specifically for renovating old houses, as well as the European Fund IFRRU2020 (Financial Instrument for Urban Rehabilitation and Revitalization).

This fund covers the complete rehabilitation of buildings over 30 years old, interventions in social housing and public spaces, and the rehabilitation of abandoned areas.

These incentives are designed to encourage and make urban center rehabilitation a great business opportunity, breathing new life into often-abandoned buildings.

1. Hire a Multidisciplinary Team

This project only becomes financially valuable if you select the right people to help. You can either assign the entire project to an architecture or design firm, or hire various professionals individually.

Coordinate the professionals and understand who needs to act first. For example, you don’t need a carpenter until an electrician has completed their work.

1. Load-Bearing Walls and Original Layout

It's essential to analyze the materials used in the walls and identify which ones can be removed to create a new layout for the apartment or house. Modern needs are very different from when these houses were originally built, so interior demolition is often necessary when renovating old houses.

This spatial reorganization is crucial to prevent structural damage caused by the renovation process.

1. Reuse Old Materials

To create a renovation that positively transforms your property while also saving money, it’s important to identify which decorative items can be preserved and restored. This allows you to incorporate furniture and unique pieces into a modern design.

1. Invest in Interior Design

To fully optimize the renovation, it's important to consult an interior designer at some point in the process. These professionals are well-versed in current and future trends and can provide invaluable advice for turning the old into something new.

Renovation Project Ideas

To help you turn your renovation project into a great opportunity, here are some ideas for your project:

• Preserve the historical elements of the building, especially windows, doors, and finishes.

• Reuse old materials and make it a sustainable project.

• Add modern spaces to the house layout that weren’t considered at the time of construction, such as kitchens, offices, and leisure areas.

• Transform central spaces like the kitchen into larger, well-lit areas. For example, you can combine the kitchen with the living room.

• Invest in modern spaces like open-plan kitchens (kitchen/living room combos), walk-in closets, and spacious bathrooms.

• Change the colors and patterns on the walls.

• Create gardens, such as using sunrooms to build winter gardens.

• Adjust the lighting to highlight certain architectural elements.

This article touches on only the initial and broad points to consider when deciding to buy a property for renovation, or when deciding it’s time to renovate your family home.

By following these steps and working with the best real estate professionals while balancing expectations with delays and unforeseen costs (which are unavoidable in such projects), you’ll be ready to turn the renovation into a business opportunity—or simply enjoy the property as your new home.

We also recommend, at the start of the process, consulting with an Engel & Völkers real estate advisor to determine whether the renovation is a sound investment and, if so, how to begin the project in the best way possible.