Renovating for profit isn’t about painting a wall and watching the returns roll in. It’s about carefully adding real value over the long haul.
Here are six tips to set you up for success.
1. Get studying
Take the emotion out of the equation and learn what improvements are most likely to add value for your style of home, your suburb, in the current market. Changes that don’t fit won’t fly, no matter fancy they are.
2. It’s not about you
Leave your own tastes at the door. If you want to make money you need to be thinking about your target audience and keep design choices neutral, not personal.
3. Budget like a hawk
Blowing out your renovation budget can breed cash flow issues, unhappy suppliers, not to mention kill morale and raise blood pressure.
A professional valuer can help you estimate costs and craft a disciplined budget. Aim to double what you spend as your end game, and always add buffer for those unpredictable hiccups.
4. Simple can work wonders
There’s plenty small, low-cost improvements that could make a huge difference to your property’s value. Fresh paint, new light fittings, new bathroom fixtures, door and window handles can all help a place command more for rent or sale.
5. Agents are your friend
Sometimes agents will chat to a network of prospective buyers before they list properties. Connect with agents in the areas you’re looking to renovate for profit, and share your goals so they can hit you up with a winner before the competition.
6. Build a team of workers
Cleaners, painters, electricians, plumbers, roofers; relying on professionals is usually essential to transform a property safely and soundly. Invest in a competent team you trust and have rapport with. Grievances and misunderstandings cost time and money.
7. Add space
Aussies have the biggest houses in the world and love room to move! Enlarging or adding rooms is a popular way to create atmosphere and appeal. If you’ve already got larger areas, consider creating multiple rooms from them, especially if it increases bathrooms or bedrooms.
Article by: Vanessa Paech