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Recent Buying Selling Lifestyle Leasing Commercial Market View Tax Investment
Selling Leasing Investment

Renovating and preparing for the unexpected

01-Oct-2019
Written by Elishah Lusi
Many television shows make renovating appear a fairly easy task. What we don’t get to see with these shows is the actual budget they use and the large number of contractors behind the scenes that ensure that all deadlines are met.

In the real world renovating can be quite stressful, costly and time consuming. Here we list a few tips to manage the process to ensure that the end result is one of a great finish, on time and on budget.

As simple as it sounds, the initial assessment of the property where you determine what fixtures or fittings are required to be kept or replaced is critical. You need to understand what can “come up” after a good clean or what has reached the end of its life cycle. When this assessment has been completed, the next task is gauge what the likely costs will be and what budget you will allow.

This aspect can rely heavily on your contractors, getting good advice from them makes it much easier to work through the process. Always get multiple quotes, but also ensure that the scope of works is consistent so that you can compare “apples with apples”. You can very easily blow your budget on this point, work out what your target market want, what level of finish etc. and cater to that.

Ensure your quotes specifically detail any exclusions and allow for these within your budget.

Unfortunately some things cannot be accounted for and the unexpected can happen. You may realise that although you have allowed for nearly every item some things cannot be anticipated until tested, such as faulty wiring. Things such as these are usually brought to your attention after your budget has been set and works have commenced.

It is therefore important to allow a contingency of between 15-20% of your budget for the unexpected. Hopefully the use of this contingency is not necessary but it is better to over estimate than not.

If you have a property that could do with a renovation to add value and increase the rental yield please feel free to get in touch.

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