When renovating a property destined for sale, it’s all about the bottom line, so knowing how to skimp but still get a great price, is vital.
Melbourne-based buyer’s advocate and qualified property investment advisor Cate Bakos says renovating for profit is very different to crafting a “forever home”.
It requires a unique approach, she says.
“The very first consideration if renovating a property you plan to sell, is to ensure you have a strong enough market to make it work. Even when you do a renovation on a shoestring, you need to think about stamp duty and selling costs as well, to make it worth your while,” Bakos says.
“The last thing you want, is to do all that hard work for no gain,” she says. Also be mindful of how the tax office will view “house-flipping” activity.”
Bakos says as long as renovators understand the demographic they will ultimately be selling to, and cater to it, it’s possible to skimp in some areas when renovating, but still turn a profit. Here are her top tips.
Shop smart
While it’s easy to walk into a big-brand store and spend lots of cash on new fixtures and fittings, there is another way, Bakos says.
“Shopping skillfully is one thing people can do to save money. If you have the time and are happy to trawl around online, on auction sites and the like, it’s amazing what you can find,” she says.
People able to refurbish furniture can give old pieces new life, then use them to stage a home for sale, Bakos says.
Shopping for new fixtures and fittings online can save you a lot of money. Picture: Getty
Get spraying
Bathrooms are very important, but ripping one out and replacing it can be expensive.
“If the bones of a bathroom are good and there are no major issues to address, look at simply spraying over tiles to refresh and modernise a bathroom,” Bakos days.
“It’s much more cost-effective than starting from scratch.”
Look at simply spraying over tiles to freshen up a tired-looking bathroom. Picture: Getty Images
Add a bedroom
Adding an additional bedroom to a floor plan is one of the most cost-effective ways to improve a property, Bakos says.
Using otherwise wasted space as a bedroom isn’t usually costly but is a “clever option for adding value.”
Adding an additional bedroom can vastly improve a property. Picture: Getty Images
Fresh floors
A number of new flooring products offer an affordable way to add wow factor – without forking out for real timber.
“Gone are the days of floating floors looking cheap. There are some great veneer and even bamboo flooring options now that are really durable and if they’re laid well, provide an excellent finish.”
Great looking flooring does have to cost a bomb these days. Picture: Hilton & Hyland
