Selling
Renovating for profit
17-Apr-2018
Renovating for profit isn’t about simply painting a wall and watching the returns roll in. It’s about carefully adding real value over the long haul.
Here are some top tips to set you up for success.
Get Studying
Take the emotion out of the equation and learn what improvements are most likely to add value for your style of home, your suburb, in the current market. Changes that don’t fit won’t fly, no matter fancy they are, and your renovating for profit dreams could become a nightmare.
It's not about you
If you’re looking to renovate for profit, adding ‘character’ can be a touchy subject. So, with this in mind, how do your ensure your improvements will add value?
The starting point is to think about your buyer. Consider their needs in a home and tailor your work to suit them. If you’re targeting family buyers, you’d look to have two bathrooms, three to four bedrooms, a kitchen with direct sight to the rear yard where the kids can play, secure gates and fences and a winter play room. On the flipside, empty-nesters prefer a smaller footprint with two to three bedrooms (for an office and guests), higher-end fittings, low-maintenance yards and building materials – close to public transport and shops.
Stick to a budget
This could be the most important point to note. Blowing out your renovation budget can breed cash-flow issues and unhappy suppliers, not to mention kill morale and raise blood pressure. It's a good idea to chat with an accountant sooner rather than later about capital gains tax and repairs vs improvements. The timing of your work and the period for which you hold your property makes a big difference to your taxable bottom line.
Simple can work wonders
There are plenty of small, low-cost improvements that could make a huge difference to your property’s value. Fresh paint, new light fittings, new bathroom fixtures, and door handles can all help a place command more for rent or sale.
Build a team of workers
Invest in a competent team you trust and have rapport with. Grievances and misunderstandings will cost you time and money.
Add space
Aussies have the biggest houses in the world and love having room to move! Enlarging or adding rooms is a popular way to create atmosphere and appeal. If you’ve already got larger areas, consider creating multiple rooms within these, especially if it increases the number of bathrooms or bedrooms in the home.
SOURCE - Realestate.com.au
Here are some top tips to set you up for success.
Get Studying
Take the emotion out of the equation and learn what improvements are most likely to add value for your style of home, your suburb, in the current market. Changes that don’t fit won’t fly, no matter fancy they are, and your renovating for profit dreams could become a nightmare.
It's not about you
If you’re looking to renovate for profit, adding ‘character’ can be a touchy subject. So, with this in mind, how do your ensure your improvements will add value?
The starting point is to think about your buyer. Consider their needs in a home and tailor your work to suit them. If you’re targeting family buyers, you’d look to have two bathrooms, three to four bedrooms, a kitchen with direct sight to the rear yard where the kids can play, secure gates and fences and a winter play room. On the flipside, empty-nesters prefer a smaller footprint with two to three bedrooms (for an office and guests), higher-end fittings, low-maintenance yards and building materials – close to public transport and shops.
Stick to a budget
This could be the most important point to note. Blowing out your renovation budget can breed cash-flow issues and unhappy suppliers, not to mention kill morale and raise blood pressure. It's a good idea to chat with an accountant sooner rather than later about capital gains tax and repairs vs improvements. The timing of your work and the period for which you hold your property makes a big difference to your taxable bottom line.
Simple can work wonders
There are plenty of small, low-cost improvements that could make a huge difference to your property’s value. Fresh paint, new light fittings, new bathroom fixtures, and door handles can all help a place command more for rent or sale.
Build a team of workers
Invest in a competent team you trust and have rapport with. Grievances and misunderstandings will cost you time and money.
Add space
Aussies have the biggest houses in the world and love having room to move! Enlarging or adding rooms is a popular way to create atmosphere and appeal. If you’ve already got larger areas, consider creating multiple rooms within these, especially if it increases the number of bathrooms or bedrooms in the home.
SOURCE - Realestate.com.au