If you’re an investor, renovating a property can deliver a significant return in a short space of time.
Overspending on projects, however, will simply eat into your subsequent rental and sales dollars, reducing that healthy profit.
It is therefore crucial to know where you can make savings. Here are our top 10 tips that will help you rein in your reno dollars and maximise your profits.
- Shop Around – Take your time to find the right item at the right price. Look around in second hand stores, on eBay or online auction houses for great deals.
- Focus on visible items – Visible items can increase value with just a small outlay. By adding small improvements such as blinds and door handles you can make a real impact on your ultimate selling price.
- Use DIY labour – While many investors prefer to be ‘hands off’, using your skills and effort during a renovation can push your budget further by reducing labour costs – which can form as much as 50 per cent of the budget.
- Fix rather than replace – Resurfacing or repainting existing kitchens, cupboards and bench tops can create great savings.
- Consider professional advice – Free and low-cost renovation classes can be an excellent way to draw on the skills of the professionals.
- Buy imitation brands – cheaper copies of designer label products can give your property a luxurious look without the luxurious price tag.
- Plan carefully – Investors often charge into a renovation without a steady plan and this can lead to extra but avoidable costs. Taking samples of colours and surfaces with you when shopping and calculating correctly can help avoid wasted money.
- Buy in bulk – Consider buying all of your products and materials in one go in order to secure the maximum number of discounts.
- Never underestimate a good clean – Cleaning a property brings ‘instant brightness’ and can cost investors far less than a paint or varnish job.