RENOVATING - 3 Pea's Property STRATEGY | RENOVATING THE NUMBERS Total value added (as per bank...

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Transcript of RENOVATING - 3 Pea's Property STRATEGY | RENOVATING THE NUMBERS Total value added (as per bank...

  • 46 SEPTEMBER 2016 | yourinvestmentpropertymag.com.au

    STRATEGY | RENOVATING

    THE NUMBERS

    Total value added (as per bank valuation)

    $90,000

    Rental return pre-reno $340

    Rental return post-reno $430

    WE ALL know that the heart of the home is the kitchen, which is why many fi rst-time renovators start by refreshing this hub of the home.

    But when you want to tackle a renovation of a whole house from the ground up, what are some of the best ways to ensure you add both value and appeal?

    Jo Powell, director of 3 Pea’s Property Styling, has overseen several house renovations in her time and says the fi rst key to success is to follow through. Many renovators get started and then, for whatever reason – usually a lack of time or money – they lose steam.

    “We’ve all seen partially renovated properties, where the newly renovated areas make the unrenovated areas appear even worse than before,” Powell says. Completing your renovation is key to getting top dollar,

    PROVEN VALUE-ADDING TACTICS FOR A PROFIT-DRIVING RENOVATION Unlock the secrets behind a profi table whole-house renovation with this step-by-step guide to strategically adding value

    as unfi nished maintenance items will “detract from the property, in the buyer’s eyes”.

    “The only thing more important than knowing what to do to increase the value of a property is knowing how much to spend doing it,” she adds.

    Here, Powell shares more tips for managing an effective and profi table property renovation.

    http://www.yourinvestmentpropertymag.com.au

  • 47SEPTEMBER 2016 | yourinvestmentpropertymag.com.au

    STRATEGY | RENOVATING

    Remember: Kitchens and bathrooms sell homes As a minimum, at least one of these areas should be renovated, if not all of them.

    If only one area can be renovated, let it be the kitchen – and any unrenovated area must be scrupulously clean.

    The kitchen is one of the most used rooms of the home and should contain all expected modern conveniences and a practical layout.

    Budget: Upgrade whole kitchen – $16,600

    Sympathetic to the period style of the house but wanting to incorporate practicality and convenience, we fully renovated this kitchen to include maximised storage, modern appliances and aesthetic appeal.

    Freshen everything with paint In many cases a coat of paint is a low-cost and incredibly effective way to freshen up and make an area vastly more appealing.

    It’s amazing what a good paint job can achieve. For instance, although we were tempted to replace the wardrobe doors in one bedroom, we opted instead to ensure that the internal wardrobe spaces were relined with melamine and fi tted with hanging rods that could accommodate hangers at full depth.

    Budget: Full professional repainting of entire house – $17,900

    Kitchen – Before

    Once the wardrobe doors were painted, along with the rest of the room, they were no longer an issue.

    Bedroom – Before

    AFTER

    AFTER

    http://www.yourinvestmentpropertymag.com.au

  • 48 SEPTEMBER 2016 | yourinvestmentpropertymag.com.au

    STRATEGY | RENOVATING

    Maximise storage space Think carefully about how to ensure that the storage space is maximised in all areas of the home, and, in particular, consider the type of storage offered with regard to its practicality.

    Whether renting or occupying, everyone needs storage, so it is a big asset when tenanting or selling a property. This is really relevant in older homes, where there are typically fewer cupboards built in.

    Budget: Makeover of pantry – $1,000

    Retain/restore period features wherever possible This applies to all homes from all periods and styles – Edwardian, Victorian, art deco, etc. It doesn’t mean create a museum for the era, but it does mean acknowledge the beauty and highlight those standout features.

    Fireplaces (surrounds and mantels), decorative plasterwork, pressed metal panels and door furniture all warrant particular attention.

    These features appeal to the hearts of buyers, which equates to an increased sales value.

    Budget: Front-door do-over – $375

    We refurbished the pantry space (located under the stairs) to utilise every inch of space available and provide both shelving and bench space. Wardrobes were also added to the master bedroom, where none previously existed.

    Pantry - Before

    Front door – Before

    We restored the front entrance door to its former glory, replacing the timber panelling and lead lighting in the sidelight panel of the door frame and repainting to match existing.

    AFTER

    AFTER

    http://www.yourinvestmentpropertymag.com.au

  • 49SEPTEMBER 2016 | yourinvestmentpropertymag.com.au

    STRATEGY | RENOVATING

    Reveal the purpose of each space Where the purpose of a space is unclear, do whatever is necessary to demonstrate to a buyer or tenant how the space can be used.

    This can apply equally to how a space could be utilised in terms of how the furniture should or could be set out. The whole idea is to show buyers how well the home suits them.

    Budget: Create usable sunroom – $4,300

    Create something from nothing Turning a three-bedroom home into a four-bedroom, or a one-bathroom property into a two-bathroom, is a winning strategy for increasing the value of a property.

    However, good research is required to know and understand the market in your area, because increasing from four to fi ve bedrooms, for example, might not necessarily have the same benefi ts as increasing from three to four. In general, maximising space to create better functionality will always be a winner.

    Budget: Create second bathroom – $11,100

    Bathroom – Before

    Sunroom - Before

    The enclosed porch at the rear of this property was aesthetically unappealing and awkward in its layout, originally featuring a spa bath under the kitchen window! After renovating this space and updating the fi nishes, it is now clearly a sunroom that lends itself to being an entertaining area, with French doors that can be opened out on to a paved patio.

    The home originally had a laundry room that contained a stand-alone trough, space for a washer and a hot water service (no shelving, bench space or cupboards). This laundry was renovated as a second bathroom, as there was no bathroom or toilet on the ground fl oor. A European laundry was then created at one end of the sunroom, which incorporated additional storage space, shelving and bench space.

    AFTER

    AFTER

    http://www.yourinvestmentpropertymag.com.au

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