Despite the major pitfalls associated with renovating, countless investors have used this strategy to manufacture capital growth and increase rental returns.
Remember your best renovations will occur when you do your research, buy under market value, buy in suburbs with high rental and resale demand, stick to your budget and take the emotion out of your decisions.
I have personally completed three renovations on three separate properties and made positive capital and rental gains as a result. These renovations were based on the top 10 renovation tips below.
At the end of the day you should look at renovating as spending money to make money.
Here are our top 10 renovation tips – designed to add capital gains and rental income to your property portfolio:
- Replace front door with something more modern.
- Undertake some basic landscaping. Remember not to overcapitalize here. Look for low maintenance plants, easy care gardens and some new grass.
- Replace carpet with polished timber, timber look or tiled floors.
- Paint all internal walls.
- Resurface the kitchen cupboards and replace bench tops and handles.
- Consider building a deck to create an external living area.
- Add bedrooms and bathrooms where possible.
- Look at turning strategically placed windows into external doors to create a feeling of openness.
- Consider turning the laundry into a bathroom, and the linen cupboard into a laundry.
- Consider enclosing the carport and converting it into a living area or additional bedroom and bathroom.
- Add wardrobes to the bedrooms where possible.
The information provided in this article is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance, tax or the law. In all cases we recommend you receive professional advice based on your own personal circumstances.
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