What to consider when planning your home renovations
It seems like a nice idea. Renovate your house make a few hundred thousand dollars and then repeat. But is it that easy? Can you really buy a fixer upper renovate it and make a healthy profit?
Yes you can. If you know what you’re doing. If you take your time and plan out exactly what it is you want to achieve. Here are five things that need to happen for a successful renovation.
- Finding the right property
Picking a house based on personal and emotional preference is usually a bad choice. To find the best property to renovate research the area: you need to find out about information such as the suburb’s population and the property market. Being able to find the most profitably suburb can go a long way to increasing your chances of success.
- Knowing the costs and plans
There’s nothing worse than ordering cabins and benches only to find out on arrival they don’t fit. Plans don’t need to be out by much for total chaos to break out. Floor plans aren’t the only thing that needs to be exact.
You have to know all the costs: holding costs, purchase costs, renovation budget. Assessing a property’s resale value should also be an important part of your financial analysis. We would recommend underestimating your profits and overestimating your costs. The reason for this is it’ll provide you with a worst case scenario. It’ll also help prepare you for unexpected things like an interest rate increase, new light bulbs and rates like electricity and water.
If you fail to plan, or don’t plan in enough detail you greatly increase you chance of failure. Many experts recommend hiring a draftsman or architect to help you on your way. This is an ideal way to go whether you’re hiring builders or going completely DIY.
- Manage your time and money
The profitability of your project can be made or broken depending on how you manage your time and money. Think about it like this: you’re the manager of shop. Every time something costs more or takes longer, that comes off your bottom line.
- Market failure
Don’t rely on a quick sale to make your money. The market can shift during a 6 or 12 month period and one way to avoid enormous losses is to plan for your auction to take twice as long to sell as you’d like.
By budgeting and planning for this, you won’t be forced to sell for less and ultimately come out the end worse for wear.
Renovations and extensions
Men in Building can help you with your renovation project. Whether you are looking to completely renovate your house or add a small extension we have the team and the tools to help you complete your project.
From flooring to DIY kitchens and everything in between our skilled employees have helped clients from Brisbane to the Gold Coast achieve their renovation dreams.
If you would like to know more about how MIB – Men in Building can help you, or to be an obligation-free quote, please call us today.