Have you seen all the house make-over programmes on TV? Of course you have! In fact there have been so many of these types of shows on television over the past few years that I’d be worried if you hadn’t watched at least one. They’re ok to watch. But who do they cater to? They cater to families renovating their own home. They presume you have an unlimited budget (almost) for the renovation, your own personal designer and they presume also that you have a background crew of 20 people to help you get it finished in one weekend! Well, wouldn’t that be just dandy?
The problem for us as property investors, with the focus of these shows being on home owner renovations is the lack of consideration for the spend vs. value aspect. As property investors, our primary aim when renovating is (or should be) the consideration of what it costs us versus what we can sell/rent/revalue the property for while avoiding over-capitalising.
So, if you’re looking to renovate property for profit (to either A. pull equity out of, B. sell for a higher price or C. rent for a higher amount), follow these simple steps to get you started. Be sure to read about the design principles in the next issue and combine your new knowledge to start creating your own ‘designer renovations on a shoestring’
Make a list of every single element in every single room. And I mean every single element. For example in a kitchen you would itemise out: cabinetry carcass, doors, handles, kick-strip, bench-top, sink, tap, splashback, then the lighting, power points, flooring, window treatments, among others.
For each and every element decide whether they fit their purpose. I’m not talking about if you particularly LIKE them as you see them in the scheme of the whole area or room at the moment - look at the elements completely independently of one another. Are they in good condition? If they weren’t adjacent to the things they are adjacent to now (instead, for example, in a more modern setting) would they look ok? So, look at every item independently and assess whether you could keep it or whether it NEEDS to be changed in some way.
Try to visualise the change you have decided to implement. If you were to make ONLY that change, would it make enough of a difference? If the answer is yes then fantastic! Often though, we need to make non-essential changes so that the space is more aesthetically pleasing.
Tell a little white lie to the contractors or project manager about the expected completion date. Keep this to yourself and keep the pressure on as if this date were correct.
Visit the site briefly and frequently to resolve any issues and keep an eye on progress. Be as nice as pie to your contractors as they will be the ones to save you money if they LIKE you!
Pay your contractors on time after they have finished every last detail on your project.
renovation idea