Ready to remodel? Renovating your property investment has plenty of long term benefits. You maximise the value of your property, make it more appealing to your target market and this increases rental returns of the property.
Establish a market appraisal
As you figure out your budget, also consider the property’s purchase price and any associated costs, interest, marketing or selling fees. A good general rule to follow is keeping the renovation budget to 10 per cent of the market value of the property.
Allow for contingencies
As a first-time renovator, you want to allow a little more, especially if structural works are involved, such as plumbing or adding a garage. If updates are purely cosmetic, like repainting and new fixtures, your contingency amount may be a little less. Just remember that updating your property investment can be full of unpredictable variables.
Know your target market
Discuss with experts about how your renovations can appeal to your target market. Looking to lease to a family? Plenty of storage is invaluable. Meanwhile, young professionals may find a home office a key feature and senior tenants would want security, safety and accessibility.
Kitchens and bathrooms
Two big ticket items for any renovation are redoing the kitchen and bathrooms. It’s wise to do both at the same time, since an updated kitchen but a tired bathroom could devalue the property. If your budget doesn’t allow for a full reno for both rooms, consider small but beneficial updates, such as repairs, floor coverings and fresh paint.
Be thrifty, not cheap
Who doesn’t like a good bargain? However, it’s important to remember that cheap products can end up costing you more in the future. Consider the durability and lifespan of your choices, especially when it comes to hardware and flooring.
DIY vs. a professional
Can you execute this renovation efficiently? Maybe if you’re just applying fresh paint to a few rooms or changing window dressings you might. If you don’t think you can handle other renovations, hire a professional to manage it for you. It may cost you more, but the work will be handled in a timely manner and to a much higher standard.