Renovating for profit is seen as a key way to manufacture both capital growth and cash flow
From a report by Retail space, the 2015 GCC interior contracting and fit-outs sector was estimated at US$ 7.06 billion. Underestimating the potential increase in worth after renovating a property is a common mistake made by many homeowners. It is a crucial stage during the research and planning phase that can make a renovation succeed or fail.
I’ll be sharing some of my top tips to ensure you are making the right choices when it comes to renovating to increase wealth.
- Do your research
It is important that your property will lend itself to a renovation, without requiring you to over-capitalize. Study what improvements will most likely add value for your style of home and for your area in the current market.
- Think about the potential buyer
Be sure to tailor your renovations to your potential buyer. Are they a family or first-time buyers? If they are a family they will most likely want more than two bathrooms, three bedrooms and a spacious kitchen that has direct sight to the yard where kids may be playing.
Empty nesters prefer low-maintenance gardens and generally need only two bedrooms. If you are thinking about extending a property, avoid anything edgy and head towards proven finishes that are in vogue. Lots of natural light, warm white walls and sociable open spaces always sell a home.
- Budget wisely
Be sure to prepare a budget for your renovation carefully and stick with it. Blowing out your budget can breed cash-flow issues and unhappy suppliers. Aim to double what you spend upon completion and always add a buffer for unpredictable hiccups.
- It’s who you work with
It is important to trust the person who will be handling your renovations so being picky is a must when deciding who will undertake the job. I would suggest getting three to five quotes for any project to ensure you have a true understanding of the cost. Once you have a couple of quotes, you will also find it to be a great negotiation tool to getting better deals.
- Simple is sometimes best
You do not have to do a complete overhaul of your property in order to increase the value. It can even be as simple as ebonizing kitchen cabinets and then painting the rest of the room pure white to create a great contrast and a sense of modernity. Fresh paint, new light fittings with dimmers and updating door handles and bathroom fixtures can all help when it comes time to sell.