Watch out for these renovation blunders

Australians adore their properties and adore renovation – evidenced by the recognition of Tv shows such as The Block. Offered the expense involved even though, renovation is not one thing to jump into lightly. The biggest mistake renovators make is failing to think about the wants and desires of their prospective tenants or buyers, says Sydney-based buyer’s agent, Patrick Bright.

“It’s no surprise that The Block has now incorporated buyer’s agents into their judging and coaching panel of experts and the finish result speaks for itself,” mentioned Mr Bright. “When renovating for profit you should generate a home that tenants want to rent and buyers want to acquire. You have to commence with the end in thoughts.”

Some “ends” to hold in thoughts incorporate:

Avoiding structural defects

If you have a restricted price range (and let’s face it, most of us do) then it doesn’t make sense to invest that budget repairing structural defects that will be largely invisible to purchasers/tenants. “The most frequent defects are sinking footings or sinking piers (these are under houses), and water erosion below houses,” said Mr Vibrant. “Then there’s a sagging roof, sagging ceiling due to a wall getting removed with out an suitable size hanging beam put in to hold it up, plus pest issues.  These are all quite pricey issues to repair.”

Market place demand

It makes sense that a property that has the right attributes, in a location with the proper attributes, will be simpler to rent or sell. According to Mr Bright, that’s the golden rule of renovating. “Considerations such as public transport, proximity of shops and obtaining a great college in the location are very crucial when deciding on a place,” he said. “The far more of these you’re closer to the better as the property will appeal to a wider audience.  Keep in thoughts you want to be “close” to them not “on top” of them or have them on prime of you.”

Unique attributes

It does aid if your property stands out from the crowd – but bear in mind that there’s special and “unique. Which leads into…

Classic style

“Don’t get sucked in by what’s trendy this month,” stated Mr Bright. “You want the renovation to last for a excellent several years. So don’t go for a colour scheme, design or decor that will date swiftly. Pick neutral palettes and avoid undertaking something that is personal or what most would consider is a bit ‘out there’.”

Parking and floor program

Don’t forget the practicalities of living. A property requirements to have a floor strategy that works effectively – and somewhere to park! “A very good floor strategy is sensible and functional,” said Mr Bright. “It permits an efficient flow of site visitors by way of the property and it maximises all-natural light and takes benefit of the greatest outlooks.”

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Watch out for these renovation blunders

Investment Properties – Some Common Buyer Blunders

Investing in property carries with it a huge and varying series of decisions to make; and according to Australia’s REIA Buyer’s Agent of the Year Simon Pressley, poor decision-making skills are a serious problem among both potential and realised investors. Here, he points out some common mistakes that both potential and current property investors can make.

1. Choosing tax advantages over capital growth potential – One of the sometimes-touted benefits of property investment are the tax advantages; the fact that losses against the property can be offset against other income (negative gearing) and that the investment loan, maintenance costs and more are a tax deduction. But while tax advantages may be an attractive initial incentive, an investment property should really be chosen on the basis of its potential for income and capital growth. Try a mortgage calculator to help you determine whether an investment is going to be both affordable and worthwhile.


2. Letting pests be a deal-breaker – if you’ve found a property in a great location with good potential for capital growth, pests shouldn’t be a reason to walk away. Take a look at how serious the situation is, how much it’ll cost to fix, and whether a deal with the owner is possible or likely. You could turn an initial downside into an opportunity to knock down the price of the property. Do make sure that you get a professional opinion on the extent of any pest-related damage though.


3. Ruling out apartments from the get-go – you might’ve heard the saying that ‘land appreciates, while buildings depreciate’, however this is not always true. While buildings may be depreciable, this doesn’t of itself make them a bad investment choice. Investing in an apartment in a built-up city area is worth considering, because apartments are desirable in such an area. So do the sums carefully, but don’t rule apartments out of your initial considerations.


4. Being inflexible on rent – the market dictates what’s reasonable to charge for rent, and if you don’t take that into consideration, it’s unlikely you’ll find a tenant. Every month you spend demanding a higher rate is another month of vacancy and no rent paid. You might not want to compromise, but 80% of something will always be more than 100% of nothing.


5. Choosing insurance based on price – A good-quality landlord insurance policy is a must-have protection for property investors. So whatever you do, make sure that you find a policy that suits your needs, based on the type and location of the property that you have. Check our Landlord Insurance Star Ratings report for more information on what to look for.

So if you plan on investing, making the right decisions will ensure that you have both the best property and the best potential for capital growth possible. You can also find a shortcut to do your homework on investment loans and interest only loans here. How much can I borrow? Go to CANSTAR’s mortgage repayment calculator to do some sums.

Investment Properties – Some Common Buyer Blunders