Planning Your Renovation
Here are five tips to capitalise on a renovation opportunity:
- How the renovation is financed can have a lasting impact on how much profit you make, as well as restrict the scope of works that can be undertaken.
- There are many different renovation finance options, such as loan refinancing (using equity currently in your home) or personal loans (usually more expensive than a mortgage but often much faster and easier to establish – especially if you don’t have much equity in your home) .
- Even though the sums may add up and a profit (should you choose to sell) can be made, all your hard work can be undone if you do not plan which areas to direct your funds to.
- Make sure you set a budget and stick to it so you do not over capitalise the property. It is easy to lose control of the project costs. Successful renovators know their limits and know when to stop.
Properties with potential
Not all properties are equal, with some properties more ideal for renovation works than others. Properties with a greater potential for renovation generally have:
- A desirable location
- A floor plan and structure that can be altered
- Structural soundness, free of pests
- Room to expand
- Significant scope for work
- Appealing neighbouring properties
- Seek out a professional expert, such as a licensed builder, structural engineer or a certified plumber, for advice to determine whether there is enough scope in your property to benefit from renovation.
- Understand what adds value and what does not.
- Different features hold different value on different properties, so identify what works are likely to generate the most interest from prospective buyers.
Seek advice from the experts
- Get a building inspector to confirm the property is structurally sound and does not have any major problems.
- Renovations can sometimes reveal significant problems previously unknown; for this reason conservative cost estimates and factoring additional funds into the budget in preparation for unexpected expenses can assist in planning.
These important discussions should take place prior to purchasing a property together to minimise future conflict.
How do I get assistance with financing a renovation project?
The team at Naritas are experts in delivering timely guidance & finance approvals. We have over 100 lenders on our panel & a high quality team of dedicated advisers to steer you efficiently through the approval process.