5 Top Renovation Tips for your investment property
TV shows like The Block are entertaining not only for the characters but for the inspiration it provides to one day make your renovation dreams a reality. Of course, it can all look like a fun project when it’s produced into a tidy 60-minute episode, and some of the most important lessons don’t make it to air. Just like any other property renovation, there are five things you need to keep in mind to make your renovation project a success.
Set a budget and stick to it
Don’t rush to flip through home magazines or scroll through Pinterest before setting a budget. It doesn’t need to be complicated. You can simply start an Excel sheet with your budget and current spending to keep track of everything. Key items you may add include painting, flooring, appliances, lighting fixtures, other fittings such as ceiling fans, and larger jobs such as waterproofing and redoing tiling. A 10 per cent contingency should also be part of your budget to account for inevitable time and money overruns.
Set realistic timelines
One of the biggest headaches with renovations is timelines. You’ll need to coordinate the timing of different jobs and access for trades, plus access to everything people need to do their jobs. This means having all the materials available and ready for tradespeople to start work as soon as they’re on site. When you’re collecting quotes for your project, get an estimate of timing from each trade and make sure you’re clear on what they need to hit the ground running at your property.
Hire professionals where it’s needed
If you’re lucky enough to have a trade or close friend or family member who’s happy to work on your project, it can save you time and money. However, if you don’t have the specific skills to complete parts of your renovations, it may end up costing you more in the long run if you try DIY too many things. Sure, doing the painting yourself may be an easy enough job, but you need to trust experts too. This is especially important for electrical work or anything that may cause costly damage if it’s not done properly.
Stick with neutrals
Your future tenants want to be able to make your investment property their own with furnishings and decorating. Keep paint colours and fixtures, and fittings neutral. This is also likely to save you money as you’ll be choosing options that are typically readily available from suppliers.
Have a vision before you start
Like any project, you need to have a vision of your end goal before starting. Keep images for inspiration, so you know what you’re looking to achieve. Pinterest, real estate listing websites, display homes, and magazines can all be great sources of inspiration.
A successful renovation on your investment property can help you achieve a higher rental yield and better-quality tenants. Knowing where to invest money in your renovations and what’s best left for a project in the future is the key to maximising your returns and achieving your long-term wealth-building goals. Keep the tips above in mind and carefully plan your renovation to get the best result possible.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.