Renovating your first property is exciting, but there are plenty of factors to consider to ensure the renovation does not go downhill.
Everything from how much you can afford to spend to how much you should spend will need to be given careful consideration before beginning.
Find the right location
To give your renovation the best chance of improving a property’s value, you need to ensure you are buying in the right area. You need to identify the suburbs where renovations will work and where they won’t work.
But how can you know which area will be best? Focus on a handful of suburbs and become an expert in these areas to get an idea of which would be best to renovate in. Have a look at past sales and rental yields for the past few months and also take into account the population growth and any developments that are planned for the near future. These factors will give you an idea of whether the area is growing or not.
Create a budget
If you have not renovated a property before then it may be hard to budget how much the whole project is going to cost. One of the biggest issues renovators face is overcapitalising and then end up selling the property for a loss.
Budgeting can help avoid this situation. According to Cherie Barber of Renovating for Profit, “a cosmetic renovation should be about 10 per cent of the total cost of a home.”
Really sell the property
This doesn’t just mean advertise online or put a sales sign out the front. In order to really engage potential buyers, you need to show them what they are really getting.
During the open inspection, provide potential buyers with a small welcome pack which gives a list of every feature for each room. For example, in the bathroom you may have under-floor heating and heated towel racks, which they may not have picked up when they walked through. If you have installed special features, then show them off on the day. If potential buyers cannot see what is special about the property, then they may not be as willing to pay your asking price.
The affordable ‘wow’ factor
It is possible to boost your property’s value and add in the ‘wow’ factor without spending a fortune. Painting is just one way to do this. A fresh coat of paint can instantly improve the property’s first impression appeal and help boost the number of potential buyers who decide to inspect the property.
The same goes for bathrooms, if you have tiles which are all in a good condition, but you don’t like the colour, instead of ripping them all out, save a chunk of money just by painting over them.
There is a lot more work involved with renovating a property than just tearing down walls and adding fresh coats of paint. Research and planning should be considered just as important to ensure your renovation is profitable.