30th April 2010
Tips on How You Can Earn More Profit After Renovations
Of course you have seen a lot of home renovation programs. Asking this question definitely gets you an already obvious answer. It would be surprising if you have not encountered this kind of show as there are already a lot of home remodelling programs in the television. They are very entertaining to watch. The big problem, however, is that you are not so sure to which side these supposedly DIY renovations cater to.
These shows do not consider property investors as these programs do not take into consideration the value aspect vs. expenses factor. For property investors, the most important thing to consider would be to do renovations at a cost that would not hurt decisions on selling/renting/revaluing a certain property to avoid over-capitalising.
Thus, if you are trying to renovate a property for whatever reasons may serve you, may it be to pull equity out, sell for a higher price or rent for higher amount, here are some of the steps that you might want to consider.
Get your mindset right. This renovation is not your own home and you do not have to live there. Consider your likely buyers or tenants and keep them in mind the whole time. Put away the pretty glossy magazines and get down to business! You are looking at what ‘hard’ changes (things that are fixed) to make rather than the ’soft’ (furniture, artwork) which is what you’ll find in most interior design magazines.
For each and every element decide whether they fit their purpose. I’m not talking about if you particularly LIKE them as you see them in the scheme of the whole area or room at the moment – look at the elements completely independently of one another. Are they in good condition? If they weren’t adjacent to the things they are adjacent to now (instead, for example, in a more modern setting) would they look ok? So, look at every item independently and assess whether you could keep it or whether it NEEDS to be changed in some way.
Try to visualise the change you have decided to implement. If you were to make ONLY that change, would it make enough of a difference? If the answer is yes then fantastic! Often though, we need to make non-essential changes so that the space is more aesthetically pleasing.
Tell a little white lie to the contractors or project manager about the expected completion date. Keep this to yourself and keep the pressure on as if this date were correct.
Visit the site briefly and frequently to resolve any issues and keep an eye on progress. Be as nice as pie to your contractors as they will be the ones to save you money if they LIKE you!
Pay your contractors on time after they have finished every last detail on your project.
