Property Renovation Tips
Property Renovation Tips brought to you by iBuild Queensland
If you’re a renovator you’ll know that the renovating bug is hard to shake. It’s important not to allow enthusiasm to get in the way. The bug can cause us to fall in love with the potential of a property, creating an urge to rescue it and at times overestimate our own renovation skills. This is particularly true when it comes to character homes. Emotional attachment can inhibit clear thinking preventing renovators from using logic and restraint. It can cloud our judgment and our capacity for decision making. Experienced renovators tend to be less vulnerable but even they are not immune.
iBuild Queensland are experts in all types of property renovation. We’ve seen it all. The good, the bad and the ugly. We’ve saved many an enthusiastic renovator from themselves and helped many more to increase the value of their property substantially. With over 40 years in residential and commercial building, we’ve learnt a few things along the way. So, in this series of property renovation tips, we thought we’d share some with you. We’ll look at many aspects of renovating but firstly, our most important property renovation tip is to know your market with one caveat – we’re not financial advisors. You should always consult a trusted, qualified financial advisor who understands your goals and circumstances before embarking on any investment path. So, what’s our first, and arguably most important tip?
Tip – Know Your Market
Be informed
Every renovation project is different offering unique challenges, risks and opportunities. It’s your responsibility to educate yourself and weigh up the pros and cons.
Get quality advice
Talk to experienced local agents, builders, lenders and financial advisors.
Money matters
Be aware of current interest rates and terms on offer for borrowing. Know how much you need, how much you’re likely to make and never make an offer without secure finance.
Compare property investment with other markets.
Property markets change
Yesterday’s business case for investing valuable time, sweat, equity, hard-earned cash or borrowings may not stack up today. Understand supply and demand issues, the general economic climate, government policies, plans, taxes and incentives that may influence the market e.g. First Homeowners Grants, stamp duty discounts, rules on foreign investment, negative gearing, zoning, infrastructure etc.
Know what adds value
Functional, well designed kitchens and bathrooms principles using high quality appliances, fittings and finishes with a timeless colour palette will always add value. These are often the first areas of the home that buyers look so when preparing renovating budgets for kitchens and bathrooms, be generous here. Our team at Queensland Building Solutions are highly experienced in Kitchen and Bathroom design and renovation. Feel free to call us for an appointment to talk through your ideas.
Focus
Choose a few potential suburbs or towns (no more than 5) within a region and get to know them. Location is everything and Google street view is your friend.
Spotting potential
Look for tightly held areas (where demand outweighs supply) and good streets. Rising markets for short term, capital gains won’t always deliver high rental returns. Good long-term, higher rental potential will often deliver lower capital gain. Properties located next to already popular higher priced areas, with good, quiet streets, amenities, schools, transport will usually offer best opportunity. It’s critical to do your research and crunch the numbers.
Watch the market
Attend auctions, subscribe to agent newsletters, read business and financial news reports, follow investment activity of commercial property developers and (not that you probably need encouragement) monitor property listings on sites like www.realestate.com.au and www.domain.com.au. Smart Company reports like this https://www.smartcompany.com.au/industries/property/
provide a great overview.
Understand the maximum potential sale price and what buyers in the area are looking for so you can avoid overcapitalizing.
Get the feeling
Spend time in your target investment area. Look at other properties. Observe the lifestyle. Join Facebook Community groups and listen to local chatter for insight into the area. Know what your buyers want, what they value and what you can offer.
Call iBuild Queensland
If you’ve got a property renovation project in mind and need quality advice or a free, no obligation quote, call the renovation experts, Glenn and Rebecca Martin at iBuild Queensland today on 0419 864 877
QBCC licence 1304991 Master Builders 68500
