Renovating for profit can be a great way to get ahead, it can also be a money pit. Taking time to research your target market is the number one tip I have for ensuring the money you invest will be well spent. While doing a walk through on a friends home recently, some of the priorities for money to be spent, really didn’t suit the potential buyer, and other important points were missed. A quick reminder of who the target market was, and we were thinking on the same track. Now funds can be redirected to renovations that will ensure the owner will get the return on their investment. There are 5 money making renovations that always add value to a home though, I have shared them today.
Garages and carports are great for adding value to a home. I’ve not yet met a buyer who wasn’t happy about the addition of a carport or garage. We all have cars, and we all need space to store our bits and pieces, garage are the number one requirement of most home buyers. Wise money spent ensuring you have covered parking, is a great investment.
Ensuites are becoming more of a requirement as our families are getting bigger. Often a simple add on, or a renovation of the existing master bathroom, can generate some positive capital in your home. This does not need to be done on a grand scale, but ensuring that your ensuite is clean, fresh and free of faults is a sure-fire way of adding value. Simply updating tiles and the vanity is a great way to achieve this.
Buyers have a tough time looking past faults or issues in a kitchen. As one of the busiest parts of your home, this is a great area for potential value adding. Again it is generally unnecessary for a full reno to take place, often new bench tops and tapware are a great way to freshen the room. Alternatively, investing in a good quality kitchen renovation is a safe way to add value when the kitchen is beyond saving. If you are on a budget, why not consider a Ikea or Bunnings kitchen. Easy for a DIYer to assemble, this is a great way to save money, while adding value.
I have spoken many times about decks adding value, especially in Queensland. Decks or patios are essential in Australia for our busy social lives. When purchasing an investment, as builders, we are always looking to purchase a home we can add a deck to. For us it’s been the number one investment to maximise our return.
Street appeal cannot be overlooked for adding value and often this is the simplest and most cost effective option for adding value. You have 8 seconds when a buyer pulls up in front of your home to create a positive impact, and grasp the attention of the buyer. Fix your fences, tidy up the gardens, put your bins away, tidy the entry and do your best to ensure your grass is green. All of these tips to increase your street appeal will help to add value and even more importantly, help your potential buyer fall in love with your home.
For a long time, as builders we were interested in ensuring each house we renovated for profit, ended up being a minimum of 4 bedroom, 2 bathrooms, 2 living, mostly because as a family, this is what we needed. After losing our on a couple of reno’s we quickly learned that we had forgotten to think about our potential buyer first. The first home owner, or the young family really don’t need a second living space, while the retired couple probably won’t need the 4th bedroom. When you have decided on your target market, think carefully about what they will be looking for in a home, that is where the money will be.
Have you renovated for profit? What is your number one requirement in a home?