Many people nowadays think that a simple renovation will lead to further profits, but this is not always the case. We discuss how to profit from a renovation. Starting with the most important factor, the RIGHT suburb, street, address! A particular area can attract significantly higher prices for renovated homes than others.
Start by researching comparable sales in the suburb you are purchasing the property. Some areas have very little difference between renovated and un-renovated properties, whereas other are vastly different.
Go and inspect the property with your checklist already prepared. Are you looking for a quick makeover of a full blown renovation. Your checklist should outline what features you are looking for and what are less important.
Have a budget outlined and documented. Understanding your costs in relation to your profit margins will give you a realistic overview. Remember to take into account every possible cost from legal fees, home loan interest and of course the unexpected costs.
Often seeking the advice of a professional can help warn against dangers such as termites, mould and so much more, which are extremely expensive to fix.