ARTICLE / PROPERTY TALK
Renovate
your below-market property
Renovate your below-market property to increase its value
IMAGE: FOTOLIA.COM
Written by David Matthews
your property still needs to be attractive to a seller
Research and plan
The golden rule of “plan for three
years and build for six” applies as a
general law. It is extremely important
to plan what exactly it is you want
to renovate in your newly-purchased
below-market property. Obviously
if there are structural issues and
problems, these need to be put at the
top of the list and get fixed first.
Research will dictate to you what is
most necessary for your area. If you
are in a part of the country where
it is cold, even in summer, installing
heating would make a lot more sense
than building a swimming pool. Also,
if you’ve bought a three-bedroom
home with only one bathroom, it
would be wise to add a second
bathroom.
But don’t get carried away with
fancy additions: stick to the basics
and stick to your plan.
plan and don’t be swayed into
unnecessary building.
Get the
professionals in
Don’t spend too much
If you can afford it, rather get
qualified and registered builders
in to do the work so that they can
be held accountable and you will
be assured that your renovations
adhere to the highest quality of
workmanship.
Compare quotes
Don’t just rely on the first-come-firstserve principle. Get as many quotes
as possible and spend as much time
as you can consult with the builders
before you make a decision. There
are many fantastic and affordable
builders out there. Stick to your
PAGE 26 / NORTHERN HILLS / CHRISTMAS ISSUE 2014
Your property still needs to be
attractive to a seller and the whole
point of buying a below-market
property and renovating it is because
you would like to make a profit.
I’ve seen it many times over:
buyers purchase a below-market
property and blow the budget
trying to turn it into a state-of-the-art
mansion and then, a few years later,
are unable to get their price. This is
where your research and planning
will come in too. You shouldn’t
spend more than 15% of the
property’s value on renovations if you
still hope to make a sizeable profit
in the years to come. NH
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