Guest blog: 10 renovation tips for profit from Money Buddy

By the resi financial blog team, 28 April 2014

10 renovation tips for profit

10 Renovation Tips to create profit, written by Andrew Holz, of www.moneybuddy.com.au


Renovating your property can be a fantastic way to increase your rental income or make a substantial profit. The housing market is growing significantly, and rents and house prices in major cities are increasing greatly. Homeowners certainly have favourable market conditions, if they are considering selling, at least in the major cities. Smart investors that renovate efficiently and in a cost-effective way will reap the rewards of high profit come sale time.

Keeping costs down is the key, creating a tight budget and a concrete plan is also essential to renovation success. Here are 10 important tips to maximize profit during your next renovation project:

1) Be ready with plans and schedules before you bring professionals in. This is hugely important because real estate agents, builders and tradesmen are expensive and you do not want to be paying them while you change your mind or argue over designs. Have a clear sketch or diagram of your designs ready to show the professionals.

2) Research your housing market and study your area. Knowing what sells well in your area allows renovators to tailor their designs and ideas to things that the public want, and are willing to pay big money for. Open planned living is hugely popular among some prospective buyers, as is the home office. Including these in your renovations could result in more interest from buyers, driving up the price. A good way to research a housing market is to attend auctions and open houses in your area and record which houses sell for high prices and the features that the public are interested in.

3) Talk to friends who have renovated before. Seeking advice from friends, family or neighbours who have been through the process before will provide first hand knowledge on important aspects of renovating.  Finding hardworking, quality tradesmen, who possess prior knowledge on specific types of renovation, can save time and money. Previous renovators can share their mistakes and successes and give first-time renovators insight into what is ahead of them during the process.

4) Don’t be scared to keep things you already have. Before you race in and start demolishing everything, take a good measure of enticing features the house already has. Live in the house for a while before starting the renovation project so you can refine your ideas, and come to a decision on a design that feels natural for the house. This also gives renovators time to consolidate their finances and make the budget as tight as possible.

5) To boost your home’s resale value, keep watch on current renovating industry trends. Current trends to consider include; indoor/outdoor entertainment areas, home offices and theatres. Energy efficient and water saving designs are also becoming more popular in the current housing market.

6) Taking a quick renovation or building course, prior to renovating could also come in handy if you have the time. TAFE courses or DIY courses run by local hardware stores are a great way to build up knowledge and learn important skills.

7) Use your camera! Make sure you always take your phone camera or digital camera with you on those inspiration seeking shopping trips. This way you can take photos of ideas and products you like and take them home to show your partner, or see if they will work in the space you are working with.

8) Cover and protect the house. To minimize the costs later, experienced renovators will cover up carpet and walls prior to work. A simple thing, but it is often forgotten and can be costly in the long run. Protecting the house saves you spending money in the long term on carpet cleaning or painting walls to repair damage. The same thing should be done for furniture and expensive items in the house. Protection and covering material can be found at most hardware stores.

9) Hire expensive equipment. If you require heavy-duty tools or equipment for the project, consider hiring instead of buying. Companies offering equipment hire are not hard to find and have very competitive rates.  Buying equipment for a one-time job can be very expensive and impact on your profit.

10) Finally, set a realistic deadline for the completion of the project. A profit maximizing renovation should not be rushed. Planning the project well and having background knowledge in renovating and the time consuming aspects of building projects that include, ordering of materials, measuring spaces and deciding on a particular design will allow a realistic deadline period to be worked out and achieved.

Try to enjoy the project as much as possible and keep your eyes on the prize during those dusty, hot days spent clearing through rubble. Adding value to your home and maximizing your profit on resale will be worth all the sleepless nights.

See full info-graphic below:

Money Buddy Info-graphic.

 

Categories: Guest Blog, Money Buddy, Renovation Idea