5 Tips for Renovating for a Profit
If you have an investment property or your own home, the sensible way to add value to your property is through renovating for profit.
Keeping up to date with trends and having a property that looks fresh will appeal to prospective buyers. Renovating will add value and generate a profit, if you stick to your plan and your budget. Renovating a property can prove to be profitable, no matter what the current market is like.
Have a budget
If your budget is tight, just a simple painting update to the colour scheme can make a surprising transformation. The renovating for profit rule is to stick to a budget of 10% of the current value of the property. This means that if the value of your property as is, is $300,000, do not spend any more than $30,000.
Have a visual representation
You don’t need a detailed drawn plan, but a visual plan will help to keep you focused and on track. Draw sketches and plans yourself of how you want the end result to look. Have a separate page for each room and make copious notes of absolutely every thought and idea you have. It is easy then to eliminate things that aren’t practical or possible.
Create a first impression
Creating a memorable first impression will get buyers through the door. All your internal renovations will do no good if buyers judge your property by their first impression. Make sure the exterior is refreshed with a lick of paint or render to modernise the look of your property. Tidy up the garden, get rid of or prune unsightly plants and do a little landscaping. Make sure the fence is neat and not run down and attend to the car parking area.
Update the kitchen and bathroom
Renovating the kitchen, bathroom and laundry can be costly. If the laundry area is large, consider installing a second toilet. If the kitchen is sound structurally and the layout good, perhaps you can get away with replacing the bench tops and modernising the look with new cupboard handles.
Refresh the floor coverings
Many older homes have beautiful timber floors covered with dated carpets and linoleum. Have a peek at what’s hiding underneath and sanding and polishing good timber or installing a floating floor can make your property look fresh, light and spacious.
Renovating for profit can be a very emotional time and is a project that will require discipline. No rushed or impulsive decisions should ever be made. The end result can prove extremely rewarding and ultimately, the stress will be worthwhile. Stick to your budget and plan with precision. To finance your renovation project, look at different home loans to see where you can get the best deal. If you wish to enter the renovating for profit property market, check out BOQ Clear Path Home Loan which may be a flexible way of financing your renovation dream.