Australian’s spend billions of dollars each year on renovating, but what if you could turn these costs into profits? Hundreds of amateur property developers are turning their hard work into cash by following a few simple tips and tricks.
Calculate the initial cost of the property, plus the cost of renovations and the possible sale price to see if the potential profit is worth it – a 15 to 20 per cent return on investment is generally considered ideal.
Research the property’s location before you start designing your renovation – determine who lives there, the local culture and overall demographics, then tailor your renovation to suit that market. If your suburb attracts retirees, designing a six bedroom family home is probably not suitable.
Kitchens and bathrooms sell houses so make sure these areas are perfectly renovated with top quality fittings and fixtures.
Analyse the property’s floor plan to assess where value can be added – adding extra bedrooms and bathrooms, for example, can add significant value to a property.
Adding a parking space if there is little or no on-street parking available and creating outdoor living areas will also add value to the property.
Tie the look of the whole property together – aim for a clean, co-ordinated and modern look throughout the property. See what display homes in the area are doing and follow their formula.
Presentation is everything – keep the interiors free of clutter and any personal items, and keep walkways and gardens tidy.
Remember, the main goal is to make money, not to live in the house yourself, so ensure that you decorate using neutral shades without too many bold colours and eclectic design features.
I’d be happy to discuss your renovation project and provide guidance to ensure you don’t overcapitalise based on your home’s current value and the characteristics and growth trend in your local area. If I can assist, please contact me: phone 0400 221 592 or email Jamie.firstname.lastname@example.org