Renovating for Profit – How to Win
Renovating for profit, or ‘flipping houses’ as some people call it, is a profitable venture that many property investors are taking advantage of today. Most home buyers prefer to buy a newly renovated home than having to do the renovation themselves.
Now, you might be thinking “Is renovating for profit something I can do?”. Sure you can! But don’t get into the false belief that this is a walk in the park. You must be dedicated and have patience, not to mention the perseverance to do loads of research. It will be a time-consuming task and can cause a strain on your personal life. But if you are willing to put in the work, then renovating for profit might just be the right investment for you.
To help you get started, here are some important renovating for profit tips that will help you achieve your vision:
Make a Smart Purchase
Ensuring success in your investment starts with purchasing the right property. Don’t go buying any random old home for sale nearby. Instead, find a location where home shoppers are searching for properties and where real estate is expected to grow.
Aside from the location, also consider the property’s price. Compare it with the other properties around the suburb and see if there’s a good room for profit-making. Afterwards, make sure that the property is still structurally sound. Check that the electrical and water systems are faultless. Ensure that the walls and ceiling are intact. It’s also advisable to schedule a building and pest inspection on the property.
Add Real Value to the Property
To guarantee success when renovating for profit, you also have to leave your own taste in home design behind. Find out what home buyers are looking for in properties and focus your renovation work to fit the demand. For example, most families prefer a home with at least three bedrooms, two bathrooms, a functional kitchen and a spacious yard that can be turner into a living room extension. Some want a home with a full-sized laundry and a bigger garage. Renovating to accommodate these demands will add real value to the property.
Stick to Your Renovation Budget
Another good tip when renovating for profit is to stick to your budget. Blowing out your budget will not only cause additional stress to you and your family, but will also force you to drive the selling price up to get a decent Return of Investment (ROI). Think about the price range of houses in the suburb. Home buyers will surely consider this and ignore an overpriced property, even if it’s newly renovated.
So, no matter how tempting it is to add a swimming pool or a patio, it’s best just to stick to your renovation budget. To prevent yourself from splurging, focus work on low-cost yet valuable improvements to the project. These include a fresh coat of paint, improved windows, new lighting fixtures and updated flooring. All of these are cheap improvements that will still add value to the property in the long-haul.
If you need help in determining the right budget, professional valuers can help you estimate the cost of your renovation and the end value of the property.
Network with Real Estate Agents
To be successful in renovating for profit, you also need to have a good marketing strategy when the property is ready to sell. So, as early as you can, start connecting with real estate agents around the area. They’ll help you match the property with the right home buyers to make selling much easier for you.
Real Estate Agents can also give you some valuable insights on what prospective buyers are looking for in a property. You can include these on your renovation plans to add more market value to the property.
Build a Good Team
Lastly, find a competent renovation team which consists of painters, electricians, plumbers, painters, and roofers, at the very least. You can also provide additional manpower to the renovation – yourself. But don’t bother doing it all on your own. It’s best to trust the job to licensed professionals to ensure a safe and sound property renovation.
By investing in a good team, you’ll be guaranteed a high-quality finish for the property and get more ROI from your investment. And by following all the aforementioned tips, you’ll be ensured to succeed when renovating for profit.
Enlist Renovare For Your Project
If you are renovating a property around Brisbane, Gold Coast, Hervey Bay, Sunshine Coast or Toowoomba, then the best renovation team for your project is Renovare. Our team of expert renovators can assist you in transforming the property into a home many families would want.