About the author
Jane Slack-Smith has been named one of the Top 10 Property Experts in Australia by Money Magazine, one of the Top 4 Financial Influencers by Qantas and been awarded the Australia’s Mortgage Broker of the Year twice.
“To prevent cost blowouts during a renovation, it is important to have a clear plan from the beginning.”
The biggest nightmare of any renovator is discovering unexpected and expensive hidden repairs they haven’t planned for. These renovation nightmares are responsible for budget and timeline blowouts…
And worst of all? They add no perceived value to a property making it almost impossible to do a profitable renovation.
Assuming you are pest free, the five worst hidden renovation problems are:
1. Rewiring
2. Restumping
3. Replastering (often needed after restumping)
4. Roof repair
5. Plumbing
If a property you’ve had your heart set on has all five, it could be time to search for another. I usually reject a property if it has three or more of these issues.
This is why it’s so crucial to get a building and pest inspection report completed by a licensed provider before you purchase a property. A pre-purchase building and pest inspection can save you thousands of dollars (if not more) as well as time and heartache.
Because the report will uncover any hidden renovation nightmares and give you a clear understanding of the extent of repairs required. As a renovator, this information is invaluable as you will be able to budget the project more accurately, and on top of that you can use the works required as a powerful bargaining chip to lower the purchase price of the property.
At the end of the day, strategic renovation is about adding the most value in the fastest time possible while spending the least amount of money.
The more you can do to reduce the number of low return (and zero return) items in your renovation plan, the better.
Low return items can be:
🔸 Gutters
🔸 Fencing
🔸 Roof repair
🔸 Floor leveling / restumping
🔸 Plaster cracking
Zero return items include:
🔸 Plumbing
🔸 Foundation repairs
🔸 Wiring
🔸 Termite damage
🔸 Existing illegal building works
Conclusion
All homes, regardless of age or condition, have defects to some extent. Successful investors and strategic renovators only purchase properties once they have a clear understanding of these issues. The full list of a property’s defects and issues, level of severity and associated costs to repair should influence your decision to purchase a property whether it’s for a renovate and hold or renovate and sell strategy.
Taking the extra step to uncover hidden nightmares in a property with tools like a licensed building and pest inspection, will prevent you from walking into a renovation that keeps you up at night.
Whenever you’re ready… here are 3 ways I can help you right now:
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Your Portfolio Building Blueprint Book The 7 simple steps to rapidly grow your portfolio with absolute confidence & minimal risk. |
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Location Masterclass Online The software/training combination to find you the right property, in the right location, in the shortest possible time. |
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Mentoring With Jane Apply to be personally mentored by one of Australia’s foremost property experts. |
