Planning your renovations
Some areas of the property market have relatively low growth at the moment.
In those areas, there’s a widening gap between demand for property compared to the number of properties available – there is greater latitude for buyers to negotiate on price. Combined, for many home owners these dynamics may influence your decision to not sell now.
If you’re looking for a new home or more space, rather than selling why not look at improving your current property – and, potentially, adding to its value to boot.
Before you seek to renovate it is crucial to have a game plan to ensure the most successful outcome. Here’s five sure fire ways to capitalise on a renovation.
Seek out a professional, such as a licensed builder, structural engineer or a certified plumber, for advice to determine whether there is enough scope in your property to benefit from renovation.
Understand what adds value
Different features hold different value on different properties, so focus on identifying what additions are likely to generate the most interest from prospective buyers for your specific property.
Even though the sums may add up and a profit (should you choose to sell) can be turned, all your hard work can be undone if you don’t plan which areas to direct your funds to.
Make sure you set a budget and stick to it so you don’t over capitalise the property. It’s all too easy to let prices spiral out of control… successful renovators know their limits and know when to stop.
How you choose to finance your renovation can have a lasting impact on how much profit you make, plus the scope of works you’re able to undertake.
There are a number of different scenarios to finance your renovation,
such as refinancing or using equity currently in your home. Give us a call and we can determine the best plan of attack.
Seek advice from the experts
Get a building inspector to take one last look to see if your property is structurally sound and doesn’t have any major problems. Renovations can sometimes reveal significant problems you were unaware of; for this reason be conservative in your estimates and factor additional funds into your budget in preparation for unexpected expenses.
Properties with potential
Not all properties were created equal, with some properties more ideal to renovate than others. Properties with a greater potential
for renovation have:
- A desirable location
- A floor plan and structure that can be altered
- Structural soundness, free of pests
- Room to expand
- Significant scope for work
- Appealing neighbouring properties