Property Renovation Tips

September 22, 2011

Tips & Ideas

Property renovation is a great way to get a good deal both as a buyer who wishes to live in it, and seller who wishes to buy low and sell high. 

Renovation helps to make a rundown, dilapidated place emerge as a glamorous residence while also adding value.

However, renovation is a wide ranging exercise in terms of expense and the nature of jobs undertaken. Depending on the renovation requirements of a place, it is important to keep in mind the returns on the amount invested in the upgrading exercise.

For those residing in the property can of course spend as much as they want but even they need to watch out for overcapitalization, since it is an unwise move financially. When an investment property is renovated, it has to be done with caution, since, besides overcapitalization, universal appeal is also important.

Some tips for renovating property will help to add value and maximize returns:

  • Creating the right first impression- The first impression of a property is formed as you drive towards it. This involves the outer façade, the landscaping, porch and gate of the property. Renovation then must focus on refurbishing each one of these to ensure that the buyer takes an instant liking to the freshly painted exterior, a well-maintained gate and tasteful landscaping.
  • Universal appeal through ‘safe’ décor – Properties must have universal appeal so that if they have to be sold at some point, their design and décor is liked by all. Hence renovation must be done with this in mind.
  • Spend on bathrooms and kitchens- Bathrooms and kitchens have gained importance and renovations must focus on these two areas of the property. Kitchens must look neat and functional and bathroom made to look elegant, with not necessarily the most expensive fittings.
  • Cosmetic changes- Renovations must include some cosmetic changes to add to the beauty of the property. This may include a fresh coat of paint indoors, a different texture on wall surfaces, and flooring.
  • Adding longevity- While delicate fittings and additions look beautiful, longevity is important, since things must have lasting value rather than need to be replaced regularly.
  • Stick to the budget – Renovations always carry the risk of overcapitalization, which is a loss making prospect. The only way to avoid this is by working out a budget and sticking to its limits. Most experts believe that renovations must not exceed 5% of the pre-renovation value of the property. This can be done by ensuring that a balance between appearance, finish, quality and price is maintained.
  • Resale must always be in mind- Most people wishing to reside in the property they buy, renovate it in a highly personalized manner. But the prospect of a resale at a later date must be kept in mind, especially while making funky changes and selecting unusual shades.
  • Keep all that is in good condition- While renovating, it is not necessary to throw all the old accessories and use only new. Some of the things that are in good condition must be recycled and utilized. This avoids wastage and saves an expense on new purchases.

These tips will benefit in keeping renovation costs low with the potential to bring higher returns

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