Three Things to Consider Before Renovating Your Home or Investment Property

As we discussed in a previous post [What You Should Know About Buying a Knockdown Rebuild], sometimes finding the best home in the best area is not always feasible, whether it’s due to your budget or just a lack of suitable homes that are on the market.

In this case, you may look for an older home that you can renovate to better suit your needs later. If you decide to go down that route, however, there are things to keep in mind.

Renovation budget

If you haven’t bought yet, you need to factor the cost of renovating into your overall budget, then subtract it out again so you have a final amount you’re able to invest in the property itself. If you overspend, know that it’s eating into your renovation budget.

In setting your renovation budget, you should also set aside about 5-10 percent more to cover any additional costs that may crop up at the time of renovating.

Safety considerations

Many homes built prior to the 1990s will contain asbestos or asbestos-containing structures such as eaves, roofing and wall linings. Likewise, homes built prior to the 1970s may contain lead-based paints.

These need to be removed safely, and so you will also need to factor in the cost of doing to into your renovation project. This is especially important if your intend to renovate your home as an owner-builder.

Council regulations

Renovating requires council approval, which may attract objections from your neighbours, just as it may if you decide to demolish the dwelling and rebuild a new one. But there are also other council regulations you need to be aware of before you make plans to renovate — if you haven’t bought the property yet, you should look into the following before making an offer:

  • Estate covenants or body corporate requirements
  • Heritage regulations
  • Easements that may preclude the use of part of the land
  • Zoning regulations.

Renovations look scary!

I thought I would share some images of a renovation I was involved in at a Newcastle investment property. There was major work needed because you could see through to the ground under the house!

New house and land package vs renovation

One reason that many people consider buying a new house and land package is because they can leave all of this work to a professional builder, claim the depreciation and interest expenses to reduce their taxable income and access new and growing areas.

There are lots of things to consider when buying a property, especially if you intend to renovate it. For help finding your new home or investment property in the Newcastle, Cessnock, Port Stephens or Lake Macquarie areas of NSW, let us know what you want or enrol into our property investment training course.

What to Look For When You Buy a House and Land Package or Off the Plan

New house and land packages in Newcastle, Lake Macquarie, real estate buyers agent and investment property training

Buying a brand new home often means signing up to a house and land package, or if you’re buying into a townhouse or apartment complex, buying off the plan.

In both instances, however, it’s not quite as simple as it sounds, as no two house and land packages or off the plan purchases are ever the same.

Continue reading “What to Look For When You Buy a House and Land Package or Off the Plan”

Purchase Negotiation and Settlement

Once you’ve defined your search criteria and discovered great opportunities and then refined your list the next stage is purchase negotiation. Vendor’s sales agents are often skilled in the art of urgency and compression which means they’re total focus is on highest price and quickest sale, but not always in that order. 

It’s good to have someone who can change the pace and begin negotiations based on your circumstances.

Continue reading “Purchase Negotiation and Settlement”

Property Evaluation fine tunes the property buying funnel

A property sales process tends to move quickly particularly when you are buying from an experienced real estate sales agent. It can also happen if you have all your finances and property checks in order and are able to move quickly yourself to secure a property.

The key consideration at this stage is that you find the best property that suits your needs and budget and that matches your criteria set in your goals!

Continue reading “Property Evaluation fine tunes the property buying funnel”

Property Inspections, vetted by a buyers agent

The Internet is NOT the Real World, it’s a Sales Agents World

If you’ve ever looked for property on the internet, then you know that very often things are not always what they seem. Bedrooms that appeared light and spacious online often turn out to be dark and cramped; lush gardens overgrown; that short distance to the local shops: a ten minute drive on a street signposted at 100km/hr.

Inspecting a property, especially if you intend to live in it, is an important part of the property buying process. Continue reading “Property Inspections, vetted by a buyers agent”