The past 15 years has really seen a spike in the number of reality TV shows based around the challenge of renovating.
And hey let’s face it…there’s nothing like seeing the transformation of an old building or home.
There are now nearly more renovating shows on TV than we can poke a stick at…The Aussie Property Flippers and House Rules…with a new season of the Block on its way (just to name a few).
The former is something a bit new to the TV world of renovation, and for those who’ve never heard of the term before, ‘Property Flipping’ or just ‘Flipping’ is a type of real estate investment strategy, where by an investor buys properties with the focus being to resell them for a profit.
Profit is made from the renovations and capital improvements and or through the price appreciation that occurs as a result of a hot housing market.
So in light of this trend, here are Call2View’s top tips for renovating a home for profit.
It’s not about you
Whether you’re in the Flipping game or are just renovating your own home for sale, remember that your tastes shouldn’t come into play. This is very different to renovating your own home – this isn’t about you!
The key to making money in this scenario is to firstly think about your target market and secondly keep your design palette neutral. Modern is good – but remember not everything dates well.
Each new project is different, so think about how you will add value to the property – think about the suburb the property is situated in and also the current market trends.
Things to consider are whether or not it’s a larger home in a family oriented area (with schools close by etc), or if it’s a one-bedroom unit with sea views. This will give you an indication of the type of market you’d be targeting and the expectations for that particular lifestyle.
Budget like a champion
From the very beginning – be sure to have a well-rounded budget plan and be sure to stick as closely to that plan as possible throughout the renovation.
Not everything goes to plan – we all know that! So the best thing to do is add a buffer for the things you think could potentially blow out.
Keep it simple
The best Property Flippers know that when renovating a home to sell you don’t need to change it all. So take a look at the property, and make a list of the things that need a complete update (the things that are holding the property back), the things that just need a facelift and of course the things that can be left just the way they are.
You’ll find that small changes can make a huge difference to the property and are super kind to the budget. These small things may well be a fresh paint, light fittings or bathroom/kitchen fixtures, a new door or different flooring.
Space is key
The bigger - the better value. Space is just one of those things that can change the feel of a place – it may be that getting rid of a wall may open a living space up to more light (as opposed to dark and closed in).
Adding space will ultimately add value to the property – an extra room means the property may suddenly appeal to a bigger market.
Build industry contacts
If Flipping is something you want to do on the side or even for a living, think about all the people you’ll need to make it happen. That’s not to say you’ll get out of doing any work – remember there’s a budget to stick to!
But of course you won’t be able to do everything, so think about the areas you’ll need to employ help for - electricians, plumbers, carpenters etc. Get to know the team and grow a rapport with them all – this way you’ll know they’ll be there when you need them.
This also includes real estate agents – as their network could potentially pull in prospective buyers before you finish the property for listing. So choose an agent who knows the area well and share with them your goals for the property – they may have feedback that could come in handy.
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