Investing in property is amazing, especially if you can actually get across the line and buy that first investment property. Renovating for profit is even better! Whether you are selling or holding the property those crucial investments in basic repairs, maintenance and cosmetic improvements that will get you the best return on investment are critical.
Having the time to do all of that efficiently and reliably making the choices that deliver the best return on investment – well that’s a whole other story.
Property Styling Melbourne has recently launched it’s Renovation Coordination Services. We assist investors primarily, but can also help homeowners manage
It’s great for anyone that is time poor and those who recognise that sometimes getting a professional in is the best way to get that Renovation done quickly.
Our speciality is coordinated, quick, cosmetic renovations. Here’s an example of one we did in Frankston recently.
Purchase Price: $270,000
Renovation Budget : $40,000
This property was in its original unrenovated condition when purchased. It also had extensive rising damp problems and consequently a very active, live and aggressive termite problem. The bathroom had hidden asbestos and the site drainage needed to be addressed to prevent the recurrence of the termite and rising damp problems.
The house was also a rabbit warren of corridors and dark spaces. On the upside the internal walls of this rabbit warren were not load bearing so opening it up for light and bright family living was easier than expected.
The original renovation budget was upped to $40,000 from a usual allocation of about 10% of purchase price to cope with the expenses related to:
- Partial replacement of stumps
- Termite treatment to the house and some native trees on the site
- Redirection of site drainage
- Partial rendering and repairs to brickwork
- Replacement of floor bearers and joists in termite affected areas
- Replacement of studs and lintels where termite affected
After dealing with the major structural problems and active termites, the primary aim of the rest of the renovation was to create an updated open plan living area.
The property was always to be held for a tenant so the selection of fixtures, finishes and colours were all made with that in mind. Affordable and durable.
The renovation took eight weeks but could have been completed faster if we had not elected to do so much of the labour (such as floor sanding) ourselves.
Project Outcome
- It took 8 weeks, instead of 6, as we elected to do some labour ourselves
- The property was immediately tenanted with a 3 year government contract that included mandatory, pre-planned rental increases and an extension option
- The property is positively geared with rental income covering repayments and outgoings
- The property was revalued at: $440,000 within 14months of the completed renovation
ROI: 36% within 14months (including Stamp Duty and Legals)
