Some people renovate to sell, others renovate to improve their current home. The rewards are usually 2 things – money or satisfaction (or a mix of both!).
Renovating a home can be a very stressful experience and it can be messy and painful if you aren’t sure where to start.
Here’s 5 tips to consider before you dive in to that renovation –
1. Study hard
It’s tough to stay unemotional when renovating a home for profit. The first thing you’ll need to do is learn about which improvements will add value based on the size, current market and who is likely to buy the home. Study the current suburb you’re in. It’s important to visit open homes, stalk the real estate pages and become familiar with which aspects are selling. History, previous sales and the demand for your property are key points.
2. Budgeting
It’s so important to stick to your budget and you need to be so diligent about it. Blowing your budget will be the biggest stress you’ll be dealing with. The aim should be to double what you spend on a reno at the end. So if you spend $50,000, you’d be hoping to make $100,000 in profit. If you eat in to your budget, you’ll be eating in to your profits. Always add a little buffer money though along the way for incidentals. Don’t forget you need to factor in any loan money, agent fees and taxes if reselling.
3. Simple is best
Instead of huge elaborate plans, can you stick to the basics? Like new paint, a new front door, light fittings, some new floors and maybe additional storage. If you’re renovating to rent out, then smaller improvements will be better. The bigger the reno the more money, the more tradies and the bigger the headache. Big renovations are always more suited to those who’ve had previous experience. If you’re new to the game you’d be best to start small.
4. Tradies or builder?
Will you be hiring a foreman or builder to oversee the entire project? Will you be coordinating everything yourself? Or even completing a lot of the work DIY style? If you do take on the project yourself you’ll have more control over the timings and budget, but if you do need to source some professionals the best way to do this is through recommendations. If you have a builder you’ll be sure to get some kind of insurance. Make sure your contractors/tradespeople have their own insurance cover in order too.
5. Make sure it’s finished
Never put a property on the market which still needs work done. If outdoor areas, bathrooms, flooring or extensions aren’t finished potential buyers will look unfavourably upon this. It just means more work for people who make not be in a position to take that on.
Good luck! ♥ KC.
