I came across this great article in Australian Property Investor which i thought was a good read.
Renovated properties may sell faster but not necessarily at a much higher price, according to a recent PRDnationwide agent poll.
The poll results also revealed that the most basic cosmetic touch ups to a dwelling such as painting and landscaping will sell for more profit compared with the more major renovations.
"Street appeal is king," said PRDnationwide Mudgeeraba agent Karl Grossman.
"Many people do a 'drive by' before looking inside. It's much easier to sell a house that looks good on the outside than vice versa. People make up their mind before they get to the front door whether or not they like a property," he said.
PRD Jens Gaunt Warrnambool director Brad Miller said to get it valued first and to seek advice on the renovation's potential added value before proceeding.
The worst return on investment according to the poll was the upsized kitchen and bathroom, along with the extension.
"Owners need to understand the importance of working to a budget," said PRDnationwide New Farm director Adam Gray.
"You need to research who you're targeting as a buyer."
PRDnationwide's five top tips for renovating for profit are:
It's better to focus on presentation rather than renovation. Getting professional advice from a property stylist will give a better result.
Simple things like moving furniture, extra lighting, adding art work and cushions will improve resale value;
Renovations will always cost more and take longer than you budget for;
Don't just design what you like, if the idea is to sell it at the end, you must cater for the local market;
Talk to a local real estate agent to find out what price bracket you should keep the final product under.
This information was gathered from:
http://www.apimagazine.com.au/api-online/news/2010/02/avoid-overcapitalising-when-you-renovate
Thinking of buying or selling in Nedlands? Call me anytime.
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