By Craig Lowe
A common question people ask me is whether or not they should undertake major renovations prior to sale.
The answer obviously varies depending on the person and the property. Generally speaking home renovation for profit is speculative and by nature risky.
People who are not experienced in building and the related trades have a disadvantage over people who do, and will need expert advice.
In very hot real estate markets, as recently experienced across New Zealand, the “doer upper” type properties are often achieving more buyer interest and higher prices than renovated properties. This effectively passes the profit onto the original seller and not the person buying the doer upper. If this is the case in your market you would obviously be best to leave the hard work to someone else.
In my experience the people who are the most successful property renovators are those who can do most of the work themselves, get cheap materials and have a lot of time on their hands. They also have an eye for detail and style and can create ambience that is emotionally appealing to buyers.
If this doesn’t sound like you, my advice would be to leave it to those that are willing to take the risk and put your money into a low maintenance rental property for the long term. On the other hand, if you beat the odds it can be a very profitable and enjoyable experience.
If you need advice regarding any renovations you are considering, or would like to know how much value you may have achieved through completed or potential renovations I am happy to meet and discuss this with you at no cost or obligation.