Home renovation has become a go-to activity for many people in the property sector.
2018 marked the year of reno for Aussie families, with home renovations reaching a record high.
Australian Bureau of Statistics data showed that private investment in alterations and additions rose to a historic high of $9.896 billion across the country in the September quarter — up 11% than in 2017.
This was a notable shift given the difficult state of the country's home renovations market over the last 10 years.
Here are the standard benefits of renovating your property, according to Small is the New Big.
- Improves the value of your investment property
- Creates capital growth
- Creates equity with the increase in rental yields
- Makes property more attractive to better quality tenants
- Reduces vacancy rates because tenants wish to reside longer
The firm also said that the benefits will be magnified and will resonate to the community if you use high-income real estate strategy (HI RES) strategies. These include:
- Creates a more flexible floorplan allowing for multiple configurations
- Opens up scope for multiple residents to co-reside
- Can increase rental returns by up to 50%
- Increases privacy for residents
- Increases security for residents
- Creates harmonious sharing space
- Addresses the lack of affordable housing
- Reduces dependence on government to provide housing
- Reduces dependence on government services and expenditure
Given that renovating requires your time, effort and hard-earned money, it is important that you prepare for it. Here are some tips that you can adopt
1. Know what you want before you start
Ensure that you already have decided on what you are changing in the house before getting quotes and choosing materials to be used. If you want to redo a part of the house and are not quite sure of the designs, lifestyle magazines are a good source for inspiration. Researching online would not hurt, too.
2. Make a detailed plan
Having a detailed plan is essential to the success of your renovation project. This should include your budget, preferred materials, and finishes – all of which should be finalized beforehand.
3. Allow plenty of time
Renovation and remodelling projects can take a lot longer than your ideal timeline. Hence, you should allow plenty of time for unexpected delays. Anticipating the need for extra time can save you unnecessary stress when things move more slowly than expected.
4. Compare quotes
It’s best to get quotes from different contractors before making a final decision so you can compare them and make sure you’re getting a good deal. High-quality materials are more expensive and skilled contractors have higher fees compared to the less experienced ones. Never forget to check the contractor’s reputation and make sure that you spot hidden fees if there are any.
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