TIME FOR CHANGE

COULD NOW BE THE TIME TO RENOVATE?

With so many people unsure of whether it’s a good time to be buying a home or investment, could now be the time to undertake some renovations instead?

Whilst there hasn’t been a 20 – 30% drop in the property market as some economists predicted, many buyers are worried about what the future holds and whether there’s a downturn around the corner. So rather than sit on the fence for the next 6 – 12 months, could you be doing something better to create your dream home or to make your current property portfolio more efficient.

Renovating can improve your property’s capital growth considerably – even in a flat or down market – and can reduce future maintenance or repairs down the track. B Y CHRIS GRAY, CEO, YOUR EMPIRE

Whilst the TV programs and magazines can make renovating look very easy, and they are called reality shows, they are in fact far from reality. You only get to see what the cameras and producers want you to see and a lot of the results can be cosmetic and not long lasting.

So here’s some tips for profitable renovations:

1. Renovate for a future sale. Whilst everyone has individual tastes, it’s important for the future re-sale of your property that it appeals to the audience. Speak to your trusted real estate agent to find out who is the likely buyer for your property and what they look for in a home or investment. This can quite often change over time as prices rise and fall and demographics change. Converting a 3 bedroom house into a 2 bed so you can get your dream walk in wardrobe may suit you, but may not make a lot of financial sense. 2.

3. Renovate to your tenants needs not yours. If you’ve got an investment property, you might not be the same demographic as the tenants that are likely to rent it and so it’s important to bring in a property manager to get their advice as to what works and what doesn’t. Dimmer switches, overhead fans, air conditioning can seem like a great idea, but if they are the things that are likely to constantly break down and are non essential, they are probably left out of your renovation – tradie call out fees can mount up over time. Go for what’s practical, hard wearing and colour schemes that work for the majority.

The little changes can make the biggest differences. In many cases, you don’t necessarily have to undertake a largescale renovation to lift a property’s value. Sometimes, small alterations including new

4. light fittings, landscaping, blinds or curtains, door handles and a fresh coat of paint can make a big difference to the property’s overall appearance. Carpets and walls are the majority of a properties surface and very easy to upgrade.

Hire a professional. For largescale renovations and projects, don’t skimp on expert help. Paying for the best builders, project managers and tradespeople can ensure that the work is completed to the best possible standard and be council-approved, which will help you come sale time. One of the best places to find great experts is through recommendations. Consult with family, friends, buyer’s agents and real estate agents for advice. 5. Some may charge a fee for service, but often you’ll save many times that in betterplanned renovations and on time and on budget guarantees.

Double-check your plans with an independent valuer. If you ask ten people for an opinion, you’ll usually get ten different views on what’s right. I often ensure that I never under or over capitalize by getting an independent valuer to doublecheck my numbers. They can tell you what your property is worth now, what it’s likely to be worth post renovation and then you can make sure the renovations cost you less than the difference.

Renovating isn’t always about the money, especially if you’re looking at improving the home that you’re likely to live in for a long time. However it’s always worth taking an unemotional snapshot at the same time.

ABOUT THE CONTRIBUTOR

Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor people – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyer’s agent and mortgage broker. For more information visit www.yourempire.com.au, www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.