How do you select a home to renovate?
1. Are you 100% sure you can make money?
“The money is in the purchase, you must be able to evaluate your property and see that you can make at least 50K in that property within a 6-12 month period,” Morris Says
2. Will your property meet its target market’s demands?
“To maximise your return you must create a property that tenants want to rent and buyers want to buy,” Bright says.
“That’s the golden rule of renovating if you want to make a profit. It’s of paramount importance to research your target tenants or buyers for the suburb and to renovate your property accordingly.”
3. Does it have off-street parking?
“Off-street parking is something most people want and it’s great to have but again pick your market,” Bright says.
“Not having a car park in an inner-city terrace house won’t be too much of a handicap because it’s the norm and that’s what buyers and tenants expect. Where you can get into trouble is to have a property with no off-street parking in a suburb where the target market expects it.”
4. Does it have a good floor plan?
A home’s basic floor plan is one of its most important selling points, so renovators should pay extra special attention when selecting a renovation project. Bright says good floor plans are practical and functional, allowing “an efficient flow of traffic through the property, maximising natural light and taking advantage of the best outlooks”.
5. Avoid properties with structural defects
“In general, I advise people to avoid the problem-child properties that need structural work,” Bright says.
“You want to spend your money on renovation improvements that tenants and buyers can see because that’s how you add value.
“Never be tempted to forgo an inspection report to save money, there are many potential problems with any home that the average person probably won’t notice.”
Morrissey agrees. She says a renovation property must have “good bones” to ensure a quick and profitable cosmetic renovation.
“Good bones are when something is structurally sound and won’t require major dollars to fix up,” she says.
“That way you can often just use paint to create amazing results.”