Before working for others as an Interior Designer my DH & I (DH on the weekend & me 7 days a week) renovated houses for profit. Here are some tips on how to make a successful renovation and a profit.
1. Watch Property Ladder on Foxtel.
I know Sarah Beeny can seem very negative but most of the time she is absolutely right. The main area I disagree with her is open plan living. She does not seem to be a fan of living areas joining the dining and kitchen. In Australia people love that and it helps to sell the house.
2. Research the area very well. Talk to local real estate agents.
You
NEED to buy in at the cheap end of the market. Don’t just look for a dump of a house but a tip instead. The filthier the better.
Find out what are the most expensive homes in your area for your style of home. Make sure you are comparing 3 bedroom homes with 3 not 4 bedroom homes.
Don’t aim to sell your home for higher than the top price for the area. Set your budget according to what you can sell the home for realistically.
3. Make sure the property is structurally sound.
Get a property inspection, you don’t want any surprises after settlement.
The less structural alterations the better. We usually bought houses that were 30 years old that just needed updating.
4. Planning Regulations
Be aware of what the planning regulations are with the local council.
Also if you buy where there is a body corporate be aware of their regulations. Apparently they don’t like you putting openings between the kitchen and lounge on the 4th floor. But it looked so good. After 18 months of discussion, 3 engineer reports and a few harsh words from me it was allowed to stay.
5. Know your seller
Decorate and choose fittings to suit who the ultimate buyer will be. Don’t decorate to suit you (I sound like Sarah Beeny now). A house in the mortgage belt should be completely different to a water front apartment for executives.
6. Classical not trendy
Decorate and use fittings that are more classical and less likely to date. The exception to this is if you are selling immediately. Even then be careful not to go overboard. You are trying to appeal to the widest market of sellers. In my experience most Australians are very conservative in their decorating taste and will buy a house with that in mind.
7. Local Real Estate Agent
Use a local real estate agent when you go to sell. They generally can attract more people to your property because they are working in the area
It is very hard work renovating for profit. You are always watching your budget and timeline. You need to finish asap because every month there is another interest payment. But if you buy well, spend carefully and present a lovely property- you can make a very good profit
.
I would love to hear any other tips you may have. Or about any of your renovating experiences.
Renovating Houses for Profit
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