October 3, 2023
Undertaking a renovation on an investment property is exciting but can also be fraught with landmines. These landmines, if detonated, can see you over-capitalising on your investment. If you intend to sell once the renovation is complete, you must be strategic in your approach. You want to improve the home’s appeal without eating into your profit.
To help you avoid the common pitfalls of over-capitalising on a renovation, we have compiled a list of tips – 5 top tips, to be precise!
1 Focus On The Right Areas
Focus on the areas of the home that are going to add value.
Traditionally, these areas are kitchens, bathrooms, living spaces and outdoor areas. These are the spaces that people spend the most time in while at home. They are also the spaces that catch peoples’ eye when finished well. Or turn them away if they are rundown!
Dedicate your budget to these focus areas as they are guaranteed to deliver you a good return.
2 Set a Budget and Stick to It
As with any project, the detail is in the planning. Taking the time to map out your renovation goals and all the associated costs, including a contingency fund for unforeseen expenses, will enable you to set a realistic budget.
3 Shop Wisely
With profit top of mind, steer clear of purchasing decisions that will derail your budget. Practicality, functionality and quality are your criteria – tiles, laminate flooring, glass splashbacks, and carpet are all budget-friendly options that will deliver fantastic results and keep your project on track.
Note – shopping wisely does not mean being frugal. Sure, grab a bargain where you can but avoid making choices based on price alone. Potential purchasers will be looking for a quality finish. A whiff of anything to the contrary will leave them questioning the entire home and negatively influence their decision to buy.
4 Plan For The Future
Make sure you future proof your renovation with these considerations:Sustainability
- Quality insulation, double glazing, home ventilation systems, and solar panelling ensure an energy-efficient home. Not only will these features appeal to potential buyers, but they will earn an excellent return.
- The smartphone revolution has given rise to the smart home, so it would be prudent to consider all aspects of modern technology when planning your renovation. A power point placement plan, climate control system, centralised wiring, a data and communications hub and vehicle charging ports will all fetch a great price at sale time.
- Clever storage solutions are never a bad investment, especially if you aim to appeal to buyers with a growing family. Consider storage solutions in every bedroom and additional storage options throughout the home, especially in the kitchen. If you have a garage, extra storage in this space will have enormous appeal.
5 Get Expert Advice
As tempted as you may be to chart your course, turning to an expert for guidance about navigating the renovation process can be a valuable exercise, especially if your game plan is to make a profit.
A discussion with an experienced builder, architect, or interior designer could see you building a list of simple hacks, things to avoid, and absolute must-dos that could save you time and money and, of course, pay dividends come sale time.
Renovating can be stressful and exhausting. Avoid the pitfalls. Follow these five simple steps to ensure that you pour your time, energy and money into all the right places and reap the profits you deserve.