TV shows like The Block, Open Homes Australia and Love it
or List it are entertaining not only for the characters and twists but for the
inspiration and ideas they provide for one day making your own renovation
dreams a reality. Of course, these shows all look like a fun, pretty organised
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
investment property 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 percent 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.
