Home maintenance and renovation in Auckland can be a risky business, especially in the current housing market. House prices have not bounced back to pre-2007 levels and houses need to be renovated to a high standard in order to achieve a sale in a realistic time period.
Here are our top tips for renovating your home within Auckland that will help you make a profit when selling your home.
If you are planning major renovations
make sure that you have the finances in place to cover the entire works, including a decent sized contingency fund in case things don’t go entirely as expected. A property that is stuck at the halfway point of property renovation is likely to be worth less than you originally paid for it!
If you are buying a house with the intention of renovating it and selling it to make a profit
You need to make absolutely sure that you buy the house as cheap as possible and cut costs as much as you can when carrying out the works. Doing the work yourself and saving the cost of expensive tradesmen will enhance your profit margin, but remember all works must be completed to a good standard.If you do not have the property maintenance skills to complete the job, it is better to employ someone in the first place, rather than having to pay someone to rectify any mistakes you may make.
Don’t take on a home renovation project that you can’t handle.
If you are new to the world of property renovation it’s best to start with less challenging properties. Ideally, homes that just need decorative work are the best starting point. This type of home puts off the majority of buyers as they are ugly, by today’s standards, and most people are looking for a home they can move into straight away. As you get more experienced in renovating houses, you can take on houses with more work needed and potentially make bigger profits.
The best way to add value to a home is to add square footage.
Extending a home, when done right, will automatically boost its value. It is important to thoroughly research how much it will cost and how much value it will add to the home first, to ensure that it is a viable option. You don’t want to spend $35,000 adding a bedroom only to find out that it only adds $25,000 to the value. You also need to make sure that it will appeal to its target market. For example, dramatically increasing the number of bedrooms, but not living space is a bad idea as not many families will want a 5-bed house with only one reception room, unless it is priced cheaply.
Always keep in mind the end goal: selling the home to make a profit.
It is very easy when in the throes of home renovation to get too attached to the project and fit it out with fixtures and fittings that are to your own taste. It is important to remember that a neutral theme will always sell better at the end of the process and it is not worth paying more for a kitchen because it is the one you would want. If you fall foul of this trap you will be lucky to recoup the money you put into the project, let alone make a profit.
If you are not planning on selling the home once renovated, but want to rent it out instead.
You need to think about the on-going property maintenance that may be required. It could well be worth renovating the home with more hardwearing materials in the first place, as you will only incur extra costs to replace worn or broken items in the future. A good hard wearing carpet and durable paint are worth paying that little bit extra for, as it will reduce the cost of the on-going home maintenance required.
Pete from Trilect says adding an automatic gate in some locations in Auckland can also be seen as added value – but have a look around the neighborhood to see what the trend is. You’ll find that gates in Kingsland, Auckland is quite common because that target audience there values privacy.
Whatever your reasons for renovating a home, it is always important to decide on a budget and then stick to it.
Keep track of your outgoings and keep an eye on the housing market to ensure that you do not lose money, as so many new property developers do. Home renovation can be a very stressful and costly process and you need to make sure it is going to be worth your while.
Need more information?
Take advantage of our FREE Complete Home Renovation Guide (48 pages), whether you’re already renovating or in the process of deciding to renovate, it’s not an easy process, this guide which includes a free 100+ point check list – will help you avoid costly mistakes.
Still have questions unanswered? schedule a no-obligation consultation with the team at Superior Renovations
Or call us on 0800 199 888