Renovation Rules

Stick to a strict budget – When you’re renovating, you will have some unforeseen expenses, so every dollar you spend counts. Make sure you give yourself a realistic renovation budget and stick to it to ensure there’s a nice profit in the end for you.
Time is money – The longer your renovation takes, the more holding costs you have. Consider the time of the year and make sure that your tradespeople are all available when you need them. Good project management will be key to flip your property quickly.
Return on Investment – Every dollar you spend should be giving you a return. There are many parts of the house that can be expensive to repair which don’t give you any return on your money – things like internal wiring, termites, floor stumping and guttering can be really expensive to repair but won’t make a big difference to potential buyers when it comes time to sell. Kitchens, bathrooms, façade are the usual money making area’s for a property.
Appeal to the potential buyer – A good agent should be able to isolate a few potential buyer segments for your property. You should renovate your property to appeal to these segments. If it’s first home buyers, they’ll want more “fashionable” or “cool” finishings. A downsizer will be looking for something different. Whoever your market is, try sticking to natural colour schemes and stay away from any quirky personal touches which you may think look great but could turn off potential buyers.

It’s not unusual for first time property flippers to feel like they’ve bitten off more than they can chew. But just like anything else you do, the more you do it, the easier it’ll get and the more comfortable you’ll be with it.