Making Money From Home Renovations
Choosing an Investment Property
Are you thinking of purchasing a home to renovate, rent out or on sell when the market is right?
Have you considered improving the salability of this property by renovating or value adding?
My brother and I have been doing this for twenty years and we have a good record of profit making in this field. It hasn’t all been plain sailing and in some earlier projects we had to hang on to our properties too long to make good returns. The most important experience we gained was that you make money when you buy a property not when you sell a property.
All the work you do investigating a potential investment property (before you commit) will pay off in extra dollars when it comes time to sell. The right House or Unit can be updated and prepared for a profitable sale using very few trades or paid labor. If you choose the house that is compatible with your skills, time constraints and financial means, with minimal work it is possible to create good capital gains.
As with all property purchases the location is important, proximity to schools, public transport, shopping, and future development should all be taken into account. It’s important to ask the selling agent any and all questions that come to mind, “better to look a fool for five minutes, than be a fool for the rest of your life” always ask questions!
The Style of house is important, check local council guide lines in the area of your potential purchase, as historic precincts, other overlays and planning regulations, can add to the number of hoops you have to jump through to get permissions for the simplest of improvements. If you have to get planning approval for the color of fences, then you will probably have a problem changing any other aspects of the building.
There is so much information on the Net and Television telling you how to renovate your bathroom, kitchen, living rooms etc, but before you can start these jobs you have to find a house to renovate, there are many different styles of houses to buy and improve, and your choice should be driven by your abilities. The Ornate Victorian, Federation, Gothic revival, etc are beautiful and command high prices when faithfully renovated, with these homes, there is always the challenge of not over capitalizing, limiting the return on money and time invested. If attention to detail and chasing around second hand building yards is your thing, then this may suit you. Initial outlay and time spent on the project may be greater, so may your satisfaction and financial gain.
I have found that houses that have been basic homes, for working class people, with little or no adornments are very suitable for renovation. The advantages of being plentiful and therefore less expensive to purchase, having few restrictions on changes, being easy to modernize, no expensive or hard to get architectural features, low ceilings (cheaper to reline or reclad), easy to find second hand doors, windows etc, all keep the renovation time & cost to a minimum and shortens the turn around period.
I find that with the smaller styles of home you can also bring the standard of energy efficiency to a point where much more affordable living is enjoyed. Insulating ceilings, walls, and floors, double glazing, and alternative energy Hot Water Systems can be retro fitted at less cost as you go through your project. This is gaining credibility as a selling point as energy costs rise. There are a lot of things to consider about potential investment properties. My experience with home renovation has been very rewarding, both in financial gain, and the satisfaction of restoring houses that have served people well, for so many years, to a point where they can become homes again for many years to come.
Article Source: https://EzineArticles.com/expert/Jeff_J_Carey/173983