Tips for Internal Renovation

September 12, 2012

Interior Renovation

Many New Zealanders have renovating in their blood. At the turn of millennium, during the property boom, there was a dramatic increase in renovating with home owners turning run down houses into homes.

Property Investors also realised there was opportunity to renovate and increase the value of their investment. Everyone was looking for the worst house in the best street.

Now ten years on and after the global financial crisis, property investment nz has remained popular and for investors the market is looking good. There seems to be a group of buyers out there who want a ready-to-move-into properties.

If renovating a property is one of your goals, here are some tips from

Keys things to do before renovating your investment property

  • Talk to the council – Structural renovations may require a permit, so make your local council your first port of call.
  • Talk to Department of Building and Housing – The LBP scheme is one of the changes in the Building Act 2004 to encourage better building design and construction. From 1 March 2012 critical building work that is known as Restricted Building Work, must be done by an LBP (Licensed Building Practitioner).
  • Never over-capitalise – Never spend more than you have to but try not to skimp on the important stuff. It can be a fine line, so get advice from as many experts as you can and know the market that you are renovating for.
  • For Investors it all about resale – Keep to neutral colours and functional layout. It can be useful to talk to an agent and get their advice on where to focus.
  • How much renovation – avoid properties requiring a total renovation, this will increase your risk and costs. You will have to pay for designers, builders and materials and you won’t have any rent coming in while the work is carried out. Use the 5% rule – if you will have to spend more than 5% of the purchase price to get the property into a rentable or saleable state, then it is probably not the right property.

For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

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