Renovate right and reap rewards
A renovation done well and in a short amount of time adds value to an investment property and helps attract a better tenant more likely to look after your asset.
Now it’s December, most people have more time to take stock of their property investment portfolio and consider a renovation.
Spending too much and over capitalising, however, negates any potential benefits by cutting into rental returns and reducing your investment profits.
Luckily, a good reno doesn’t mean you have to blow the budget. Careful shopping, driving a hard bargain and haggling for a cash discount can help you save money meaning you have more to spend on your investment property.
Speak to an accountant or BMT financial specialist before you start renovating to see what you can and can’t claim on your property. It will also give you a better idea of what’s worth spending more money on as well.
Once you’re ready to start, here are some handy tips for an affordable but worthwhile renovation to enhance your investment property:
1 You don’t need to buy brand new when you can often buy the same item second hand or online for a fraction of the price.
2 Think minimum outlay for maximum impact. Light fittings, tap and drawer handles cost relatively little but can make a big difference when updating interiors.
3 If you’re handy with tools, then do small jobs yourself and save big money. Some jobs like plumbing and electrical work, however, need to be done by a qualified tradesperson.
4 Go neutral whenever possible. Play safe with interiors and you can’t go wrong. Boring yes but sensible and classic means most tenants will be happy rather than having to live with a bright red wall or last season’s colour they hated.
5 Work with what you have where possible. Fresh paint, carpet cleaning, regrouting and resurfacing old bench and bathroom surfaces can make a tired property look new.
6 Take sample paint pots and fabric swatches when you go shopping. You’ll buy exactly what you need, are less likely to make costly mistakes and will be more in control of your investment property makeover.
7 Clean and maintain everything. Wash curtains and windows, steam carpets, dust surfaces and mow the lawns.