How to Properly Buy & Renovate a Home for Profit
Renovation is one of the fastest ways to add value to a property - but it can be tricky if you don’t know what you’re doing. Truth is, each house can be renovated in a different way and create a different result. To understand what style of renovation works, certain factors need to be looked at and there is no one size fits all way to do that - but this list will help! Let’s take a look.
1. Firstly, location matters.
Purchasing your property in the wrong suburb means risking your profit potential before you’ve even begun. Always think through the buyers perspective and appeal to the majority of buyers. Because no matter how stunning the renovation is, people would still choose good amenities and infrastructure that is in close proximity to public transport and preferably quiet locations.
2. Purchase when the price is right.
There’s a perfect timing, even when it comes to buying a property - and doing research on your own can save you the trouble of being too hasty. Know how much properties are worth in the suburbs you’re looking in and don’t let your emotions decide for you. There are peak seasons and trough seasons -try to find out what time of the year is the perfect time to purchase.
3. Base your renovation on the right market.
Splurging on an expensive renovation that isn’t for the right market is a wasted effort. First, you need to know who your target market is and then tailor your renovation to that demographic. If it’s young families then adding safety features and a practical play area can add value for them. And for singles or busy couples who want a low-maintenance property, adding a lawn can be considered as a turn-off.
4. Always try to improve kitchens or bathrooms.
The Kitchen and Bathroom areas are the two areas where you can add huge value (however they are also the most expensive so be careful). Changing old tiles and painting those areas with a bright color can make a lot of difference. You can transform the cabinetry if the wood is still in good shape - just be wary that a full renovation is needed you need to be careful about your budget as they can be expensive projects.
5. Find out how much you can spend and stick with it.
Knowing how much budget you have for the renovation is a critical part of the process. This alone can ultimately dictate your success or failure. Your purchase price is the first thing you need look into and then the total cost of the renovation will add up if you don’t carefully consider every cost. You need to have a realistic idea of what things cost and know the maximum amount you can spend on each project - get quotes for everything, use the internet to research prices, and just check the cost for every aspect of the renovation.
Getting it right isn’t easy but knowing what type of renovations can add value and make sure that you are within your budget is something you can do. A great research and a practical approach can always make any renovation worth it. If you want more property investments tips, leave a comment and I would be happy to help out.