Renovate for Profit
Looking to make big profit in short time? Want to know how big investors get the best returns for their investment? Then you need to look at renovate for profit type of property investment. There are currently lot of investors who are making tons of money with property. At Invest.org.nz we have sourced out basic information, advice and tips that will help you in getting started with renovate for profit property investment.
That Adds Value
Not all kinds of renovations will improve the value of your property. You should carefully choose the renovations keeping in mind your budget and tastes of potential buyers. Any renovations done in your property should not only be cost effective but must also be needed and essential.
Renovating properties is increasing desirable alternative of many investors in New Zealand who invest in properties. When a property is renovated its value increases and its future selling potential also increases.
Things To Consider
Before starting with any kind of investments it is wise to get to know more in depths about it. You should do enough research to be a successful investor and make profits with your investment.
When buying a house to renovate and sell, check the NZ market value of properties in areas you want to buy.
Choose a good location. Avoid noisy and polluted areas.
If buying old property than be sure to thoroughly check out all the repairs and renovations that will be needed before you could resell the property.
Get a contractor or qualified project manager to inspect the property and ensure the renovations runs on time and budget.
Buy a property that is updated rather than an old one which will require a lot of money in repair and renovation.
You should set out a budget, depending on the size of the project and the changes that you want to make to the property before selling. Some of the things that will need to cover in your budget are; deposit, stamp duty, renovation costs, interest repayments during renovation and reselling costs.
Seek advice from people who have experience about investment in properties.
Don’t do the renovations yourself. Instead hire professional contractors to do the job as this will be done faster with little costs.
Renovate to sell
Common strategy followed by most investors in NZ is that they buy cheap properties, renovate it and sell it for profit. Renovate to sell and renovate to profit properties should be given a relatively inexpensive makeover to freshen up the property to make it look attractive to buyers. Doing an expensive makeover will be costly for investors and can lead to loses.
Renovations That will Add Value
Lay new flooring
Paint kitchen cabinets and change handles
Replace aged worktops/sink/taps etc
Replace windows and floor covers/furnishings
Repaint kitchen, bathroom, living room, master bedroom
Modernize kitchen cupboards with new finished and changing door handles.
Fix broken fittings and fixtures
Upgrade showers and baths
Tidy up the garden and add a deck
Improving light and other space enhancing factors.
Extend the property.
Add a garage and parking in the property.
Renovation investment can work either as a disadvantage or an advantage to investors. Investors just need to know how to make renovations an asset. People who overdo the renovations in the property to sell will lose out on their intended profits and may even at times have to sell the property for less than they bought it for.
Investors who follow a guideline keeping in mind all factors impacting their investment in mind make huge profits in less time from their investments.