Master the Art of Renovating for Profit PART 2

Ready for some helpful renovating tips? Home renovation expert Bernadette Jansen digs into specific opportunities and has some advice for dealing with tradies.

Welcome to part two of my series on renovating for profit.

If you checked out the first article, you’ll already have some great tips from renovating expert and director of The School of Renovating, Bernadette Jansen, under your tool belt. 

Here are a few more pearls of renovating wisdom from Bernadette. This time around, we will look at some specific renovation styles and some quick tips for dealing with tradies.

Renovating tips from an expert

  • Apartments

When it comes to renovating apartments, Bernadette says it is a mixed blessing, “I like renovating apartments because they’re quite contained and you don’t really do a lot of external work,” she says, “But they can sometimes be a challenge because most owners corporations do not understand what the process is.”

Challenges include:

  • Common areas: Changing ‘common areas’ takes more paperwork. Considering a wall is labelled a common area in an apartment complex, you can see the challenge. 
  • Access: Access to the apartment can also be an issue. Is it possible to get large materials in the lift or up the stairs? Will you need to hire a crane to bring things in via the balcony?  
  • Plumbing: The position and flow of pipes is clearly more restricted in an apartment building.
  • Lighting: Ceilings in apartments are usually suspended concrete, so electricians don’t like to change the location of light fixtures. If you’re renovating, you might need to pursue alternatives like floating ceilings.

Despite these drawbacks, Bernadette is fond of renovating apartments. Apartments sell well these days and, as Bernadette says, “An apartment that’s 20 or 30 years old will come up really well, and it’s possible to add lots of value.” 

  • Micro development

Bernadette advises that the best option is micro development if you want to build a property portfolio these days. Bernadette describes micro development as “Where you buy a house on a chunk of land that’s big enough to build something else so you can subdivide, renovate the house, sell it and then build on the back and keep the new.”

Bernadette explains that if you have an old house, it is still an old house. The purchase and renovation of the old home will pay for the land that the new home sits on. Renovate the original property using the tips we’ve discussed and keep the new home for yourself so you can save on the cost of upkeep.

The new home has high equity as a bonus because you haven’t paid for the land. Using a prefabricated house as your new residence can further increase your profit margin. 

  • Airbnbs

Another clever modern strategy to renovate for profit is to create an Airbnb. If you can get your hands on a historic property, you have a quality selling point for an Airbnb. Add the necessary facilities to make the property habitable to holidaymakers, and you can have a tidy little money maker.

  • Dealing with tradies

When it comes to tradies, Bernadette says, “Do your due diligence.” 

Basically, look into the qualifications of any tradie you intend to hire. First, check their reviews to make sure they are well regarded. Second, make sure they are appropriately insured and licensed. 

Final renovating tips

Finally, Bernadette says, “Get some education if you’re planning to renovate and you will most certainly recover the costs very quickly.” 

The best way to get education is to reach out to a professional for help. For more advice and education, contact Bernadette and the team at The School of Renovating.

For all your conveyancing needs and everything else real estate, contact us today.