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8 Hints/Tips to Buying A Property To Renovate And Profit!
When buying a home one of the key things to consider is increasing the potential to add value and make money when it comes to selling later.
Buying a property and renovating is one of the most popular methods of achieving this.
Sometimes it can be tricky to know where to start. There are a lot of considerations, from where to buy, to proper budgeting and ensuring you’re up-to-date with any restrictions and compliance.
Here, we take you through the first steps to help you buy, renovate and sell for a profit.
1. Scope your location
As is the case with buying any type of property, deciding on the right location is usually your first step towards finding the right property.
When it comes to buying a property to renovate and sell, there are a couple of considerations. Primarily, you’re looking for a location that has steadily been increasing in value, or one that shows signs of increasing in value in the very near future.
Some key things to look for:
2. Investment in infrastructure
Are there new shopping centres, stores, entertainment, or recreational centres popping up in the neighbourhood? This can be a sign of investor confidence. More stores, shops and community centres will lead to more jobs and pushing up the demand for local properties (due to local population growth).
3. New transport facilities
If you are not a expert in market trends, keep an eye on your local government’s activity. When local councils approve of ‘growth’ in an area they almost always look at the capacity of local transport facilities.
So if you see proposals for new/expansion/refurbishment of bus terminals, train lines, etc - this will be an indication that there is an expectation of greater use in the future (which means the expectation of more population in the area)
Historically, areas where ‘new’ transport proposals have significantly reduced commute times - have made a big impact on house prices in that area. Just look at the prices of the North Shore in Auckland after they put in that bus way... in Wellington we’ve got quite a large motorway being built.... enough said.
4. Quality schools and childcare
Families are willing to move and pay top dollar to be within the catchment areas of quality public schools and childcare facilities. Every city has ‘those schools’ that families who put a large value on primary/secondary education. These families are usually also keen on giving their family the best possible living environment as well.
So renovating properties in this area will yield great results.
5. Decide how long you’ll hold the property while you renovate and sell for a profit
If your plan is to renovate and sell the property, then the question becomes, “How long do we hold it for?” The answer really depends on your local market. So do your research.
When looking for properties, ask real estate agents about the local market and how it’s been tracking over the last few years and their thoughts on what’s contributed to any increases in property values.
Keep also in mind of your government laws around selling for profit. You may need to live there for a set amount of years before progressing.
If you’re buying a home that requires a lot of work, but is in a great area, it might make sense to sell as quickly as possible after renovating, especially when considering holding costs.
If you buy in an ‘up and coming’ area, it may mean you need to factor into your budget the time it takes for the area to increase in value.
If you are planning on living in it and holding for a while... you may just want to add a little bit of personality to your renovation plan. After-all.... you need to enjoy your life too!
6. Understand any government /council restrictions and compliance
Once you’ve found and bought the perfect property, the next thing to do before you even consider possible renovations is to get familiar with any codes, restrictions and compliance involved in renovating the property.
Most government websites will have sections dedicated to information on building restrictions, so make sure your plans comply.
One of the main issues people have are around bathroom / kitchen locations / remodelling. If in doubt - ASK!
7. Plan your costs
Like any renovation, costs can blow-out really quickly. That’s why it makes sense to budget not only for the cost of the purchase and renovation costs, but any potential holding costs and any costs which may be unforseen. A good rule of thumb is to budget 20 percent more for contingency.
8. Decide to do it yourself or employ contractors
A lot of my clients plan on ‘doing most of it themselves’ so save some coststhe reality is... they end up renovating their house for 10 years and by the time it is finished it is time to move.No doubt it has saved them some money, but I know I wouldn’t want to live in a ‘work-in-progress’ home for that long.
Doing a lot of the work yourself will certainly save money initially, but make sure it’s something you can realistically take on. If it’s something you’re not confident you’ll be able to complete to a high standard or on time, it will only cost you more when you need to hire a professional to come in and redo the work.
The best scenario is one where you break tasks into those you’re positive you’re able to do yourself and those best left to the professionals.
Note also that some things need to be left to the professionals by law, like any electrical work for example, so make sure you’re across these restrictions before starting.
One of the most common DIY disasters I see, is actually a 'simple’ job of painting walls. It is very easy for buyers to spot a DIY paint job, so please don’t underestimate the task or overestimate your skill.
Lots of risk goes into buying a house to renovate and sell for a profit, but with careful planning, research, and budgeting, it can also come with some pretty great rewards.
Team YIP offers a free renovation consulting service, we can also help you project manage your renovations as well!
If you are thinking of renovating or buying a ‘renovator’ feel free to get in touch for a chat! [email protected]
Happy house-hunting everyone!
Follow me on Instagram @ endosmash for live updates on #TheBlockNZ live auction
Eye spy on The Block NZ | Week 11 & 12 - Outdoors
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Jo & Damo's Outdoor Areas
3. Spritsa Tumbler in Aqua - $5.95 ea from Freedom | 6. Markem Napkin Set of 4 in Natural - $12.95 from Freedom | 7. Sorrento Dinner Plate in Seafoam - $9.95ea from Freedom | 9. Hector Placemat in White - $4.95ea from Freedom | 10. Weekender Cushion in Teal - $29.95ea from Freedom | 24. X-Large White Planter Pot from Bunnings | 28. Sorrento Bowl 14cm in Nougat - $6.95ea from Freedom | Spa by Vortex Spas |
Plants from Bunnings:
36. Astelia Silver Spear Shrub from Bunnings | 42. White New Guinea Impatien from Bunnings | 43. Star Jasmine (Crawler on the Fence) | 44. Bay Trees | 45. Small Grasses from Bunnings
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Alex & Corban's Outdoor Areas
2. Mimosa Acapulco Chair - $99ea from Bunnings | 5. Mimosa 3m Aluminium Round Cantilever Umbrella in Charcoal - Bunnings | 11. Mimosa Outdoor Bench Cushions (only available for purchase with the furniture) from Bunnings | 12. Colonial Cedar Barrel Hot Tub - starting at $6600 from Colonial Hot Tubs | 15. BeefEater BUGG BBQ - $498 from Bunnings | 18. Lineum Cushion in Yellow - $39.95ea from Freedom | 29. Breeze Block Style Screens - custom made by Pacific Build in Albany
Plants:
31. Maroon New Guinea Impatien from Bunnings | 32 & 33. Rainbow Park Nurseries Bromeliads from Bunnings | 34. Pukanui (Meryta sinclairii) | 25. Palm | 36. Astelia Silver Spear Shrub from Bunnings | 37. Pseudopanax Cyril Watson from Bunnings | 38. Griselinia littoralis |
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Maree & James' Outdoor Areas
2. Mimosa Acapulco Chair - $99ea from Bunnings | 4. Matador 5 Burner Hooded Stainless Steel & Enamel BBQ - $997 from Bunnings | 20. Vortex Luxury Spa Pool - Starting at $8295 from Vortex Spas | 13. Mimosa Fresco Corner Sofa Setting 4pc - $1499 from Bunnings | 19. Weekend Cushion - $29.95ea from Freedom | 27. Umbrella is similar to: Solsmart Round Cantilever Umbrella - $599 from Bunnings | 14. Tiki Precint Lite Garden Trough Garden Pot Large White - $129.98 from Bunnings | 23. Outdoor setting is similar to: Mimosa Outdoor Timber Setting with Benches - $649 from Bunnings
Plants from Bunnings:
46. Lancewood (Pseudopanax) | 47. Electric Pink Cordyline from Bunnings | 48. Assorted Grasses from Bunnings | 49. Yellow Clivia from Bunnings | 50. Day Lillies from Bunnings
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Quinn & Ben's Outdoor Areas
1. Mimosa Deluxe Aluminium Wicker Lounge Setting - $2299 from Bunnings | 8. Mimosa Timber Storage Bench - $339 from Bunnings | 14. Tiki Precint Lite Garden Trough Garden Pot Large White - $129.98 from Bunnings | 16. Ekologix Composite Decking in Dark Brown from Bunnings | 17. Jumbuck 3 Burner Dual Fuel Hooded BBQ - $549 from Bunnings | 24. Large White Planter Pot from Bunnings | 26. Tiki Precint Lite Moon Garden Pot White - starting at $14.95ea from Bunnings
Plants from Bunnings:
39. Petunias from Bunnings | 40. Arctotis | 51. Tomatoes from Bunnings | 52. Lettuces from Bunnings | 53. Capsicums from Bunnings
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Other credits:
A-lign Fencing from Jenkin
Griselinia littoralis
Eye spy on The Block NZ | Week 10 - Living Room and Entranceway week
If you’re wondering where to find products as seen on The Block NZ this week then check the collection below - each product has a link to where it can be purchased online (if available).
All these products and more can be found on Curate
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Jo & Damo's Living Room and Entranceway:
1. Manhattan Modular sofa in Loft ecru - $2518 from Freedom | 2. Oak Base Hurricane Vase - $59.95 from Freedom | 3. Fleur Bulb Vase 20cm Glass - $19.95 from Freedom | 4. Taper candles - $6.50 ea from Loft Design | 5. Large Uashmama bag in Silver - $54 from Collected | 6. Marble Diamonds by Denmark's Bloomingville - from SE3 | 7. Albino Reindeer Hide available from Loft Design's Herne Bay store | 8. Albin Linen Cushion Cover with Shiny Piping - $49.90 from Citta Design | 9. Recycled Wood Retro Whitewash Coffee Table - $429 from Citta Design | 62. Floating shelves similar to - Signature S Wall Shelf Small in Wallnut - $49 ea from Freedom or $49.95 from Mocka | 64. NZ Sheepskin - $99 from SE3 | Custom Curtains from Freedom
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Alex & Corban's Living Room and Entranceway:
(View the completed rooms here:
11. Butterfly Chair instore from Freedom - similar Butterfly Chair also available for $379 from LET LIV | 12. New Zealand Interior Style by LeeAnn Yare, photographs by Larnie Nicolson - $65 from Collected (Also: Check out Rooms to Love by LeeAnn Yare - $65 or buy both and save $15) | 13. Minimal Wall Clock in Copper + White - $99 from LET LIV | 21. Tai Citron Linen Lumbar Cushion Cover - $29.95 from Citta Design | 23. Tiger print by Tanya Austen of NZFINCH (framed by Factory Frames) - $30 from Felt | 28. Parrot print by Tanya Austen of NZFINCH (framed by Factory Frames) - $30 from Felt | 29. Ahoy there matey anchor print by Tanya Austen of NZFINCH (framed by Factory Frames) - $30 from Felt | 32. Tricote Round Basket Medium Black - $39.95 from Freedom | 33. Eastern Hemisphere Framed Print 83x103cm - $299 from Freedom | 34. Beam Cushion 50x50cm in Black - $29.95 from Freedom | 35. Tower Coat Rack 176cm in Natural - $129 from Freedom | 36. A-Frame M3 Bookshelf in Black - $199 from Freedom | 37. Grayson Chair in Drift Ecru - $699 from Freedom | 38. Stockholm Coffee Table in Oak/White - $249 from Freedom | 39. Murdas Stool in Natural - $99 from Freedom | 40. Freedom Quest Throw in Almond - $179 from Freedom | 41. Aspect Modular Sofa in Ryder Mineral - $2299 from Freedom | 61. Chi Cushion Cover - $44.90 from Citta Design | 63. Armadillo & Co Sahara Weave in Charcoal - $1475 from The Ivy House | Custom Curtains from Freedom | 63. Flower Weave - Marigold - $590 from The Ivy House | 64. Nest Weave Rug in Charcoal - $325 from The Ivy House | 66. Tom Dixon Beat Shades 3 Pendant System (Tall, Wide & Fat) in Brass - from ECC Lighting | 67. Black Fable Oak Armchair - $690.00 from Citta Design | 68. Black Cotton Velvet Cushion Cover $44.90 from Citta Design | 69. Gava Medium Brass Antique Dish - $34.90 from Citta Design | 70. Gava Small Brass Antique Dish - $18.90 from Citta Design | 71. American Oak Small Coffee Table - $289.00 from Citta Design | 72. American Oak Medium Coffee Table - $349.00 from Citta Design
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Maree & James' Living Room and Entranceway:
10. Axel Geometric Green & Blue Triangles Cushion 50x50cm - $89.95 ea from Vast Interior, 113 Wairau Rd | 15. Sweden 440 Pendant - $259.90 from Lighting Direct | 16. Assorted Bonnie & Neil cushions - from $145 from Collected | 24. Henderson 4 Door 4 Drawer Buffet in Natural - $1799 from Freedom | 26. Ashley & Co Waxed Candles - $45 from Collected | 27. Habitat Sphere Pendant in White - $189 from Lighting Direct | 30. Manhattan Modular sofa in Loft ecru - $4499 from Freedom | 42. Kip & Co velvet cushion - $90 from Collected | 43. Bandit Cushion in Mustard - $59.95 from Freedom | 45. Yolk Vessel 26cm in Yellow - $49.95 from Freedom | 46. Ashley & Co Home Perfume Blossom & Gilt - $65 from Collected | 51. Aegean Vessel 15cm in Sulphur Green - $29.95 from Freedom | 52. Liquidity Vessel 25cm Reactive Blue - $44.95 from Freedom | 53. Artwork made by Maree using stretched fabric on a timber frame - Kuuskajaskari Linen Fabric in blue, green, black - $98 per metre from Bolt of Cloth | 54. Holt Round Coffee Table in Oak Frame with Oak Top - $399 from Freedom | 55. Stables Rug in Leather and Jute 230x160cm - $449 from Vast Interior, 113 Wairau Rd
Custom Curtains from Freedom
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Quinn & Ben's Living Room and Entranceway:
14. Colourful Resin Deer Head - from Nood | 17. Hercules Cushion 45x45cm - $39.95 from Freedom | 18. Replica Noguchi Coffee Table Large - $1229 from Nood | 19. Honeycombe wool rug - from Nood | 20. Abin Nest Table - $379 for 3 from Nood | 22. Shooting Sparrow Unicorn Bookend - $79 ea from Collected | 25. Birds on a Wire Canvas 150x50cm - $249 from Nood | 31. Signature 3 Seat Sofa in Attache Nutmeg - $1499 from Freedom | 44. Anglepoise Floor Lamp - $399 from Nood | 47. Pops Cushion 50x50cm Orange - $19.95 from Freedom | 48. Aziza Cushion 50x50cm Orange - $39.95 from Freedom | 49. Aziza Cushion 50x50cm Yellow - $39.95 from Freedom | 50. Hasina Cushion 50x50cm Grey - $39.95 from Freedom | 56. String of Hearts Framed Art Print - $335 from Collected | 57. Signature Tub Chair - $699 from Freedom | 58. Tissue Box Cover in Black - $15 from Collected | 59. Chihauhau Dog Oil on Canvas - $179 from Nood | 60. Beckett Cushion 50x50cm in Orange - $34.95 from Freedom
Custom Curtains from Freedom
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Use Curate.co.nz to save and share your favourite products from The Block NZ - request an invite to join here
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There were lots of products that we couldn’t hunt down - so please let us know if you know of others that you think we should include or you think we may have incorrectly credited anything - [email protected]
Please note - Prices and availability of products listed above may change and we do not guarantee accuracy of products.
For more information about The Block NZ see http://www.tv3.co.nz/Shows/TheBlockNZ.aspx