5 Ways To Turn A Serious Profit From Your Renovation
Over the last couple of years, Australians have spent billions of dollars (over $37.5 billion) on home renovations. But it’s important for home owners to realise - Not every renovation dollar spent provides the same return on investment.
To save you from wasting money on and help you make serious profit from your handwork, we’ve assembled our top 5 pieces of advice for any eager renovator looking to maximise their ROI.
But first, we need to answer an important question.
Why should I renovate?
If you plan to resell or rent out your property in the future, investing in renovations will increase your property value and make it easier for you to get a higher price for it. There are other reasons to renovate, though, including the following:
● Address and prevent potential safety issues
● Reduce the cost of utilities (especially when you invest in energy-efficient upgrades like new windows or solar panels)
● Improve the quality of life for yourself and your family
Renovating your property now also makes life easier (and less expensive) for you and your family when you do decide it’s time to move. You won’t have to worry about paying for repairs and updates when dealing with all the other stressors of moving because you’ll have already taken care of them.
How to Make a Profit from Your Renovation
There’s no doubt that home renovations can be expensive. With a little planning, though, you can choose strategic renovations that boost property values and yield better profits.
If you’re looking to maximise your home renovation ROI, keep these 5 tips in mind:
1. Choose the Right Renovations
The first step to enjoying a good profit from your home renovation is to choose the right projects. Some home improvements are known to provide a better ROI than others, including the following:
● Kitchen remodels: The kitchen is one of the most frequently used rooms in a house, so it makes sense to invest in a minor or major remodel of this space.
● Bathroom remodels: Bathrooms are also some of the most frequently used spaces, and nobody wants to live in a house with an outdated bathroom.
● Deck or patio addition: People like having places to kick back and relax with their loved ones, so adding a deck or patio is a great way to improve your home’s outdoor space.
These kinds of renovations often give you a lot of bang for your buck. On the other hand, some updates don’t provide a lot of return or may even cause you to lose money. These include adding a swimming pool and adding or renovating a home office or workspace.
2. Don’t Get Too Personal
Whether you’re choosing paint for the kitchen cabinets or picking out a countertop for the bathroom, try not to get too personal with your decisions. In other words, pick something that other people are likely to enjoy as well — don’t focus only on your personal tastes.
If your home appears to be too customised, potential buyers or renters might have a hard time envisioning themselves living there. This could affect your future sales or rental prices. If in doubt, paint it white.
3. DIY When You Can
If you’re looking to save money while still maximising your returns, consider taking a DIY approach to home renovation whenever you can.
For example, you might be able to repaint or refinish your kitchens cabinets yourself. This saves you from having to invest a lot of money in repainting, and it also frees you up to spend those funds on something else.
4. Call a Professional When Needed
There are some things you can do on your own when renovating your home. However, other projects will almost certainly require a professional’s assistance.
Remember, if you are hesitant about your ability to handle a task yourself, call an expert. If you try to DIY too much, you might end up spending more money to fix your mistakes than you would have if you’d hired a professional in the first place.
5. Get Multiple Quotes
When you are looking for professionals to help you with your renovation projects, it’s important to get multiple quotes.
Don’t rush through the process and partner with the first business you can find. Getting several quotes gives you a chance to compare and contrast professionals and find the person who’s the best fit for the job.
Need More Real Estate Advice?
Now that you know how to maximise your returns, are you ready to get started on your next home renovation project? Keep the tips listed above in mind and you’ll have no trouble making a great profit.
If you want to sell or rent out your property in Cairns or the surrounding area after renovating, we’ve got you covered at Champions in Real Estate.
Contact us today to learn more about services, from property management to buying and selling. Our team is here for all your real estate in Cairns needs.
