Home renovations are a great strategy to increase the value of your property because they can improve the functionality of the home, increase space, appeal and overall just bring the house back to life.

1. DETERMINE THE PURCHASE PRICE (HOUSE FLIPPING)

Buying a renovators delight at the right price is critical. You need to ensure that once you have finished your refurbishments that you are going to make some money.

2. DO YOUR STUDY!

Determine what improvements are going to add the most value to the property. Improvements for your style of home, your suburb and what is happening in the current market.

3. KEEP IT SIMPLE AND NEUTRAL

If you are renovating and thinking of adding character, make sure to be very careful as this may turn away potential purchasers.  By keeping it simple and neutral, purchasers can add their own touches to match the style they like.

4.WHAT TO LOOK FOR?

Ideally you should look at purchasing properties at least 20% under the suburb median sale price. It is best if the property has poor street appeal, tired paintwork, poor landscaping & dated outdoor living, dated interiors (with good bones). Therefore, you can make changes that aren’t too costly and can increase the value of the property significantly.

5. PLAN & BUDGET

Plan the improvements you are going to make on the property to increase the value and set a budget. Make sure to analyse the potential profit to ensure your return on the renovation is going to be worth your while.

6. BEST RETURN ON INVESTMENT

Home improvements with the best return on investment are projects that add functional space and square footage. Make sure to take this into account when planning and budgeting for your renovation.

7. LOCATION, LOCATION, LOCATION!

As the saying goes “Buy the worst house in the best location!” If you are planning on purchasing a property to flip, research suburbs and locations thoroughly that will be popular with buyers/and or renters. Buying in a bad location can be a very costly mistake and risks your ultimate profit potential. Keep in mind that the needs of an owner occupier and an investor differ, each has different needs such as close proximity to schooling, public transport, green spaces, entertainment, cafes etc.

8. KITCHENS & BATHROOMS

Two areas where huge value can be added! Kitchens and bathrooms are the household staple. You will find a lot of purchasers and renters’ main critique will be on the kitchen and bathroom. By updating the two without overcapitalising you can increase the value of the property dramatically. But once again, keep it neutral & practical and give storage a serious consideration.

Renovations can be time consuming and hard, but if done the right way you can increase the value of your properties significantly and make rewarding profits.