Step By Step Guide To Renovations

Step By Step Guide To Renovations
“We have completed over 600 renovations, averaging around 120 jobs per year,” says Mark. “With a small budget, you’ll need to prioritise carefully, expect to do some of the work yourself, or undertake a plan. If you only have $20,000 perhaps it means you do the kitchen this year, but make an agreement with the tenants that if they are still there in 12 months, you’ll tackle the bathroom then.” How to Guide Step 1: Setting Goals – why are we doing this renovation? A renovation for a buy and hold rental will have different goals from a property you intend to renovate and trade, or one day live in yourself. “Tenants can actually be put off by high end fixtures and fittings,” Mark says. “They are concerned that if these things should get damaged they will be expensive to replace. Go for tried and trusted brands on things such as tapware and appliances, so you can easily source replacement parts.” For a buy and hold property, are you trying to increase return, in which case can you add another bedroom by turning a large laundry or sunroom into a bedroom, or can you extend? Is it generally tired, in which case you may be after ‘redecoration’ which is a cosmetic refresh using existing cabinetry, and adding touches such as a new coat of paint, as opposed to ‘renovation’ where you are removing walls and putting in whole new kitchen cabinets or shower units. At the very least, renovations should safeguard you from tenancy vacancies and allow you to keep up your rent at a good market rate. Barry...

Renovation Roadtrip Seminar

Renovation Roadtrip Seminar
20 Budding renovators attended this inaugural Renovation Roadtrip seminar which was jointly hosted by Maintain To Profit – Property Apprentice and Harbour City Plans which was a full day on the real nuts and bolts of renovating residential property. The day concluded with site visits to renovation projects across Auckland in various stages which the attendees commented gave them “real life” experience of whats involved. Here is some feedback form the day Eyes wide open as to what to expect now – thanks guys for an informative event Visiting the sites was a real eye opener for me – more work than I had realised in renovating Full day of great content and knowledgable speakers – well done – wll recomend to my friends More value than it cost ten fold thanks team...

When is the time to Renovate and Redecorate?

When is the time to Renovate and Redecorate?
“Are the types of renovations you do for investors simply redecoration or are they renovation.?” That’s a question I recently received via email, and it raised a very valid point.  What do these terms mean with regard to your investment property?  What are the outcomes and cost that come with each? There are only two reasons to renovate in investment property: • To increase your equity • To increase your rent and rentability (reducing your vacancy factor) To achieve these goals, you may only need to redecorate without doing a major renovation.  This could save you time and money, but it’s important to get it right. Firstly, and most importantly, work out what your budget will be and then set about planning your project.  Once you have established your list of works it should become clear if your project is redecoration or a renovation. Your project is redecoration if: • The work is just superficial • It’s easy to remove or replace the items that are being changed. • The work doesn’t require any structural or integral changes to the building footprint. Usually, this kind of work can be done in a few weeks. For the typical redecoration you simply require new paint, new carpet and vinyl and small items such as new handles on your kitchen cupboards and possibly a new mirror and tapware in your bathroom. Often even novice landlords can manage these types of projects; provided you understand the workflow of each trade and the consequences of getting it wrong.  For example you always lay the carpet after painting to ensure it never gets paint damaged.  This...

Renovate NOW

Renovate NOW
Many building suppliers are increasing costs due to the rise in GST, which came into effect at the beginning of this month.   But with a subdued building market seeing the availability of builders and other contractors, the time is still good to be renovating. We have been quoted increases by suppliers from 2.50% to as much as 12% in some instances and that will certainly add cost to any size renovation project.  There is a firm belief this is their only opportunity to apply a price increase in this economy. Our company has seen a real surge in investor’s enquiries, in particular since the Budget was announced and tax implications made clear.  Seasoned investors want to ensure they maximise rents with well-presented properties that stand out from the crowd and that attract good quality tenants, especially if a tenant should move on, so there is little to no downtime. They also understand very clearly that the property market may take many years before it rebounds to the lofty heights of 2007.  Homeowners who can’t or won’t sell in this market have bunkered down and are borrowing an affordable amount to renovate and add that extra room or create that extra space that their lifestyles require. So this month I thought I would talk about three of our recent and very different renovation projects, what the landlords or owners wanted to achieve and how it’s working out for them. Project 1  Renovating to Rent This is a five bedroom large house, on a full site, purchased for $410,000 by a young couple as their second investment property in New Windsor,...

Matching materials to your project

Matching materials to your project
I spend a lot of time convincing investors to buy and install or use the appropriate materials in their properties (both traders and buy and hold investors). So, this month I’m going to share our company’s experience of over 200 renovations both for the resale market and the rental. The first thing to decide is exactly what you are going to do with the property you are about to spend money on.  This is very important because what you do to the property will change if you are going to sell it or whether you intend to rent it out.  Once you have done that then you only need to decide how long you will keep the property for if renting it out (most buy and hold investors don’t sell for at least 10 years or they see their property as a retirement fund so it’s long term). So we will look at your average 100 square metre home in a mid-range price bracket covering both of the above scenarios are by area. Exterior The cost and quality of paint varies and the old saying that you pay for what you get can be very true, however it is a certainty that the amount of preparation you (or your painter) carries out on your property will far out-weigh the cost of the paint which is usually 10% to 20% of the overall price of the project. We always use Resene paints as a matter of quality and they offer a fantastic colour consultation process free of charge if you use their products.  If you’re smart you can buy paint...

Avoid DIY disasters and sell for profit

Avoid DIY disasters and sell for profit
We Kiwis are known to love a bit of DIY around the home and many will jump at the chance to pick up a paint brush or hammer and nail. But when it comes to adding value and then selling property, it can be hard to know the balance between renovation rewards and risk. Renovating property to sell can be tricky, because although upgrading a bathroom or kitchen can add a more modern quality to a house on the market, keen renovators who fail to do their homework could face problems of poor budgeting and over-spending. Mark Trafford is a co-director of Maintain To Profit, a company that helps more than 200 home owners get their properties ready for sale every year. He says that although it’s important to spruce up both the inside and outside of a home, too many people go overboard and end up over budget. “Our firm belief is that many homeowners either can’t afford to sell or upgrade at present, or simply don’t want to sell their house at what they see as a lesser price in the current market, which has flattened out this year” he says.  “We look at all renovations from a return-on-investment scenario for our clients however it can vary according to each project.  Our tip: set a budget, be realistic and have a timeframe.” When it comes to basic renovations, which is all most people need to make their house open-home worthy, remodelling the kitchen or bathroom should do the trick.  A little work can equal a lot of street appeal. “Often it’s not necessary to replace the entire...