Renovations – Part 1: Top tips and mistakes to avoid (Ep.68)

In this week’s episode, Dave, Cate and Pete take you through:

  1. The most common mistake; over-capitalisation It’s very easy to find a property that needs a renovation, but not so easy to find one that will reap a profit.
  2. The team take you through the various approaches to renovating that will add value to the property, and those which will not.
  3. Ballooning budget Unreliable tradesmen, deadlines slipping through your fingers like sand, and alterations to the plan can quickly add up to cause your renovation budget to blow.
  4. Planning for delays and allowing for contingencies is critical to a successful renovation.
  5. Unexpected and invisible costs From finding asbestos to hitting hard stone when excavating, these are just some of the unexpected costs that can come out of the woodwork when your renovation begins. These additional costs burn into your wallet, but removing the issues do not add perceived value to the property. It shouldn’t come as a surprise to hear that prospective purchasers expect to buy a house free of asbestos.
  6. Sharpen your project management skills
  7. Like any major project, a renovation involves multiple moving pieces and parties to corral.
  8. The average renovation requires 10,000 decisions to be made.
  9. If you do not take the time to plan, arranging your tradesmen, deadlines and budgets can be like herding stray cats.
  10. How do you value your time?
  11. Many people do not factor in the cost of their own time and stress when ‘running the numbers’.
  12. Be prepared to set aside significant portions of your time for planning, making/taking phone calls, wrangling and negotiating with suppliers, making decisions.
  13. If renovating is not your day job, this could mean hours after work and on weekends.
  14. Could that time be better spent with your family? Or doing your regular job?
  15. Financing a renovation The Property Planner shares with you the various ways that you can finance your renovation project. It goes without saying, but the least involvement you can have from the bank, the more freedom you will have.
  16. On the flipside – beware of flipped properties Purchasing a freshly renovated home can seem like a dream come true, but beware, not all that glitters is gold! If someone is flipping to turn a profit, be weary for potential cut corners.
  17. And of course, our ‘gold nuggets’

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