When it comes to renovating a home, there are any number of changes or improvements that you can make.
But not all of them will add value.
When most people renovate, they have a laser focus on what will make the home better for them. Of course that is important if it is your own home, as you are the ones that will be living there. But it is also necessary to consider what will happen to the home once it is time for them to move on.
Will it be attractive to another buyer, and will the changes add value to the home or not?
Here at Jack, we always recommend that one of your renovation considerations should be how you can successfully renovate for profit.
Let’s look at what that means, the areas that offer the most gain, and how you can successfully renovate for profit, even if it is your own home that you are renovating.
What Renovating For Profit Means
Renovating for profit effectively means increasing the value of the property by making changes to it. These changes can range from switching a door handle, to adding an extra floor to the house and everything in between.
The first thing to think about when you consider any renovation, is whether the investment is worth it or not. This is true of an investment property or your own home.
If you over capitalise and sink too much money into renovations, then it won’t matter how great the property is. There is only so much that anyone will pay for a home and if you exceed that amount with your planned changes, then you are going to lose money.
Before you pick up a sledgehammer, it pays to get expert advice on your plans. By contacting a full service company like Jack, you not only have access to the best builders and project managers, but you also have access to our team of experts. They include architects, mortgage brokers, interior designers, and specialist contractors.
Access to them means access to their expert knowledge. Collectively, we can advise you what the costs will be, if your plans are going to work, and if they will show a good return.
The Areas That Can Offer The Most Financial Gain
You will have heard the saying that kitchens and bathrooms sell homes. That can be true, but they are not always the areas that add the most value.
Here are some of the ways that you can increase the value of a property. Some are relatively affordable, while some require a more significant investment:
Adding an extra bedroom (especially if the home only has 2 or 3 bedrooms to start with)
Adding an extra bathroom (most buyers have an expectation that a home should have two bathrooms, so meeting that number can increase the value)
Updating kitchen cabinets by repainting or replacing
Replacing updated flooring
Fixing broken fixtures and fittings
Upgrading bathroom fittings - bathtub/shower
Adding a deck
Improving the flow of the home, making it more open plan
Allowing more natural light in
Adding a garage
Improving outdoor spaces to be more usable
How You Can Achieve A Successful And Profitable Renovation
As we mentioned above, not all changes will add value to a home. You need to think carefully about the areas you want to modify and if the changes are really necessary.
To successfully renovate for profit, you need to remove your emotions from the decision making process. You need to think logically about the changes you want to make and if they are practical. Also be mindful of the style you choose and adding too much character. These things can put potential buyers off as they know they will need to change the things they don’t like.
We recommended that you have a budget and stick to it. Your budget needs to be realistic for the work you want carried out. You can set this budget with the help of your building team and architect. Don’t forget to involve a mortgage broker if you are borrowing funds to have the work completed. There is no point in setting a budget if you do not have the money available.
Don’t try and do the renovations yourself, especially if they are major. Hiring a professional team will ensure your renovations are completed to a high standard, you get exactly what is in the plan, it is completed on time and within budget, and you know that any work will be completed to the necessary building standard.
If you are interested in knowing more about how you can add value to your own home or an investment property through renovations, then contact us here at Jack.