Renovate or detonate
It’s a question we hear all the time. How do you know if a property is suitable for renovation or if it needs a bulldozer? With so many varying factors in real estate, there’s no clear cut answer. It also varies depending on what the renovation is for – is the renovation for profit or are you renovating your forever home?
At Rainmaker Property there are certain features or characteristics that are essential. Here is a few of what we look for in our projects:
Location: If you’re interested in real estate, you’ve probably heard the saying “always buy the worst house on the best street” and that rule definitely applies for the Rainmaker Property team. There’s no point spending thousands of dollars making a property presentable if the property next door looks like a train wreck. If you’re renovating for profit, street appeal not only applies to the purchased property but the neighbouring homes as well.
Floorplan: This might seem obvious but there’s quite a few things that need to be taken into consideration when studying a floorplan. At Rainmaker Property, open plan living is always a high priority and checking that it’s structurally possible is vital. It’s all well and good to visualize removing a wall, but if it happens to be a structural wall, then the cost to remove that wall jumps considerably and you need to factor that into your budget. The other essential we look for is plumbing locations. For those renovating for a profit, moving plumbing is a costly exercise and not one we’re keen to do. For an owner renovator, moving plumbing may be more viable as they will get the value out of it over time.
Block size: When it comes to block size a lot of people think the bigger the better but for renovations this is not always the case. A lovely big 800sqm block might be great for a big family but if the home only has a couple of small bedrooms and one living space, then it doesn’t balance. For Rainmaker renovations, we look for homes that cover 20% of the block size or close to it
Building inspection: Getting a quality building inspector to view the property is an absolute must. If you’re renovating for profit, it’s great if you can use the same building inspector as you learn how each other works and you can have trust in their judgement. Often we’ll inspect a property and instantly fall in love but, for us, the building inspector’s decision is final. If he says no, we move on.
When renovating for profit, these are just a few of the many, important things that need to be considered. If you’re renovating your dream home, then some of these may not be as important because resale value doesn’t always need to be taken into account. Always ask yourself, “Who is this for?” If it’s for a profit, think about what your buyer is going to want or need, as it may not necessarily be what you would want in a home, and then work out if it’s achievable. If you’re renovating your dream home decide what are the most important things for you and again, work out if it’s achievable.