Australians are not only avid homebuyers, but also renovation fanatics. Unfortunately, we’re not all experts at renovation – many people end up over their head before they’ve even begun. Here, we shed some light on a few common pitfalls associated with renovating.
Do your homework
If you take the necessary precautions to ensure that all your finances are in order, you are less likely to go over budget. Budget problems are far more likely when renovation plans are ill-prepared: you don’t want to get to the point where your savings are being eaten into and you’ve already redrawn all three credit cards by the time the first bathroom has been renovated.
Be aware of your mortgage contract – you may need to inform your mortgagee of any dramatic renovations you wish to have done to the house before you can even start. Don’t risk having your mortgage contract breached.
Research, research, research.
We can’t stress enough that you do your homework. If you are looking to purchase a home for purposes of investment via renovations, check how long the property has been on the market. Most properties that have been sitting on the market for more than a few months are likely still there because there is not much profit to be made. Location usually plays a part here, so perhaps reassess your choice of area.
Investment properties
Many of you may be considering buying an investment property, renovating it to add value, and then selling it off for a profit. While this is a great investment plan, a common pitfall to avoid is buying a place that requires an impractical amount extensive renovation. These places as referred to as ‘moneypits’ – your budget may be burnt out by the time half the renovations are complete.
This however, is easily avoided by employing an expert. Don’t just get one quote – get three. It will pay off to know what you’re letting yourself in for.
If you have any questions regarding renovations, please don’t hesitate to contact us.
