Property Investment Tips: Will renovations add value to my property?

By the resi financial blog team, 02 April 2015

Property Investment Tips: Will renovations add value to my property?

Australians love a DIY project and the same can often go for an investment property. When you've purchased a do-up, it's tempting to dive straight into renovations without considering how the outcome will match your investment goals. Here are some tips to guide your makeover in the right direction. 

Show me the money

Top of your list when it comes to overhauling an investment is finance. Frequently, investors can underestimate the cost of doing a renovation project and end up spending a lot more than they initially intended. Sometimes, you can even make the mistake of trying to squeeze your whole venture into a limited budget.

Figure out the detailed charges you'll face throughout the project and, of course, allow some room to breathe with contingency funds. The more thorough you are during the planning stages, the more accurate you can be be when getting finance.

Kitchen or bathroom?

Part of the planning process is working out where your money can go the furthest. This often comes down to strategy. Whether you're overhauling the property to sell now or to improve its value over time, it's important to analyse how much profit you can make for all your effort. From this, you might decide to restrict your redecorating to just a few rooms. 

Installing all the mod cons might seem like a good idea, but it's often the most simple things that appeal. This might mean a tidy lick of paint on the walls, installing an air conditioner and central heating system or replacing the carpet. Have a chat with your property manager or real estate agent about what your target market appreciates most in a home in your area.

Investing in a property can be a rewarding experience, and even more so when you have the opportunity to improve it. But before you dive headfirst into the market, get in touch with a resi loan specialist to find out more about what finance is available to you. 

Categories: Property Investment