When you purchase an investment property or your own home, generally the first thing on your mind is renovations, and how these renovations will add value to your property. The number one priority you as a property owner, and/or investor, must have in order to value add is keeping up with trends. When you have a property that looks fresh it holds a greater appeal for prospective buyers. So here are five simple, sure fire ways to freshen up your home and renovate for profit.
1) Have a Budget:
You need to be realistic about what it is you can actually afford. Blowing out your renovation budget can breed cash flow issues further down the track. This leads to unhappy suppliers as well as a decrease in morale and a severe increase in blood pressure.
A good rule to stick by is to ensure your budget is 10% of the current value of the property. This means that if the property is currently worth $400,000, do not spend more than $40,000 on renovations.
A professional valuer can help you to estimate costs in order to design a disciplined and accurate budget. But in order to stay on the safe side always make sure you double what you spend as your end goal, and always add a buffer for unpredictable mishaps.
Once you have figured out your budget you will be able to design a plan of attack. Projects that will add a lot of value without costing you too much include:
- Adding a fresh coat of paint,
- fencing the property,
- updating door handles,
- modernising the entry,
- replacing flooring,
- upgrading showers, baths and tap-ware,
- creating a neat and tidy outdoor area,
- installing new curtains and light fittings,
- modernising kitchen cupboards with new door handles and finishes.
2) Have a visual representation:
You don’t need to go crazy here and create a full on architectural drawing. However, a visual plan will help to keep you focused and on track with your renovation.
Draw sketches and plans yourself of how you want the end result to look. Ensure to allocate a separate page for each room, and take copious notes of all your thoughts and ideas. This will make it easier to eliminate concepts that aren’t practical or possible.
Keep in mind – if you are an investor, your concept needs to stem more from market trends, than from personal taste in order to produce profits.
3) Create a lasting first impression:
Freshening up a property’s curb appeal and creating a lasting first impression is one of the greatest tools for adding value. Creating that memorable first impression is what is going to get potential buyers through the door. All your internal renovations will go unseen if you can’t get the buyers interested in coming in.
Some simple solutions for creating a better first impression include:
- Rendering or painting the exterior,
- Neatening up the garden and planting modern plants,
- Fencing the property where appropriate, or updating current fencing,
- Look into building an undercover area for parking – especially in Brisbane’s climate.
- Wash the windows
- add a good quality letter box,
- Spruce up the street numbers,
- Resurface the paths and driveway,
- Repaint the roof
- Install a new front door
At the end of the day, many buyers will decide whether or not they like a property based heavily on their first impression. Make sure the one you are leaving is fresh and enticing.
Reform Space will also be providing you more great tips specifically on outdoor living, pool, and garden designs, plans, and renovations in later blogs.
4) Update the kitchen and the bathroom:
The kitchen is considered to be the ‘make or break’ room for potential buyers, while bathrooms are the most heavily criticised rooms in homes during an inspection. While renovating the bathroom and kitchen may be costly they are the rooms that, with improvements, usually offer high returns.
When it comes to kitchens the smaller your investment, the higher the potential of recovering costs. Ensure you avoid budget-breaking extras, buyers will be paying more attention to cleanliness, layout, and storage capacity, than state of the art appliances.
Some simple solutions for renovating a kitchen include:
- Replacing tap-ware,
- Resurfacing bench-tops,
- Paint kitchen cupboards and doors,
- Replace cupboard handles,
- Replace light fittings
Keep in mind that in the modern market buyers generally prefer neutral tones, so think white, and greys. If it is possible try to incorporate a kitchen island to aid in creating the open-plan scenario that is on trend with current buyers.
Like kitchens, bathroom renovations for profit are best achieved through low cost repairs. Try to avoid completely gutting a bathroom as it can eat away at a large chunk of time and money. Look into low cost options that provide the clean and tidy look buyers are searching for.
Some simple solutions for renovating a bathroom include:
- Painting walls and ceilings,
- Resurface the bath,
- Add a new shower curtain or screen,
- Replace the tap-ware,
- Replace the shower-head – current trends lean towards heads with several water options, or even dual shower-heads.
- Replace the bathroom mirror,
- Replace the vanity,
- Replace handles on drawers and cupboards,
- Replace towel rails and the toilet seat,
- Make the space light and bright
Just make sure you don’t go overboard with fixtures, some people like adding their own little extras in such a small and personal space.
We will be providing you more great tips specifically on kitchen and bathroom designs, plans, and renovations in later blogs to make sure you are fully on track to tackle this important renovation when the time comes.
5) Refresh the floor coverings:
Flooring is one of those projects that can provide you with the highest returns. You can completely overhaul the look and feel of a home by addressing what is under your feet.
If the home is old look into whether or not there are beautiful timber floors under that horrible dated carpet or lino. Finding beautiful timber floors puts you merely a good sand and polish away from having lovely, on trend flooring. However, If this isn’t an option for you installing a floating floor can make your property look fresh, light and spacious once more.
Keep in mind that dark coloured floors such as dark red, and dark chocolate have a higher perceived value than lighter ones, while most buyers prefer carpet in the bedrooms.
Happy renovating, and good luck.
Image Source – Declan Malone – Flickr Creative Commons