Renovating
Why renovate?
”Doing up a house” is a long tradition in Australia. Why
renovate or improve a property? Why spend
the time and money?
To improve the property for your own use, to add value, to improve
the valuation of a property and loan to value ratio, to increase the rent return.
Like most things, once you start, it is much easier to
continue. Continual improvements are a great way to add value to a property and
to make it unique.
It is necessary to make improvements over time as other
owners are doing the same. Instead of doing
maintenance, think of ways to improve the property for its livability or appearance.
Houses are easier to make gradual or substantial improvements
as there are no body corp. rules. A
great way is to convert a three bedroom one bathroom house into four bedrooms and an en suite.
You need a long term plan on what you want to achieve. Piece meal development can detract from the
value. Consider using a drafts person or architect to get an overall plan that
you understand.
Consider the financial benefits first. A 15% return on the rent or more should be the goal. What about micro climate improvements to give
special areas to enjoy the morning or afternoon sun.
The renovation cost should be tripled in the capital gains. If you cannot achieve this, consider smaller
improvements that are more cosmetic. A
new piece of lawn, some garden ornaments, or a new heat lamp in the bathroom.
These should cost $250 each and easily achieve the above goals. Like so many things, practise makes perfect, and in not too many years you are making the big improvements to achieve your goals.
Australian
Renovators Manual 7th Edition
Allan Staines House Manuals
By: Allan STAINES
Contact us for advice and suggestions.