It’s the Holy Grail for many property investors – buying a property, renovating it, and then selling it for a profit.
Chris Gray, host of ‘Sky News Business’ and ‘Your Property Empire’ recently shared his thoughts on what property investors need to know in order to complete a successful renovation on time and on budget.
1. Choose properties that need mainly cosmetic work
Chris advises that investors avoid properties with structural damage, as this is often when expensive problems occur. According to Chris, if you already own the property you definitely need to leave that part to the experts.
2. Find a valuer
Chris notes that one of the biggest misconceptions investors have is that the more they spend renovating a property, the more profit they will make. A valuer can tell you if your $30,000 kitchen renovation will actually add $30,000 to your home’s value.
3. Be realistic when doing it yourself
According to Chris, His tip is to double your expected cost and timeframe and then work out if you’re still going to make a profit.
4. Use a project manager
Chris advises that there are too many risks involved in managing a project alone. Handling the renovation yourself could save money initially, but hiccups along the way might turn your $40,000 renovation into a $60,000 – $80,000 job in the long run.
According to Chris, “even if the property market hasn’t moved in your local area, renovations can create artificial growth in your property’s value.”