By Paul Wilson As time goes on and investors wait for the property market to improve many are deciding to take on a renovation of existing realestate either in order to increase its value or to increase the rental income.   This can be a very good way of doing just that if all goes well.   In saying that, great care does need to be taken to make sure that the renovation does not overcapitalize the property.  What thatRead More

It seems that renovation is taking an upward swing again as property prices stay stable or even drop- in certain areas. Various reports come through telling of areas that are rising, but in fact there does seem to be fewer areas rising than are dropping at the present time. It was hoped that the last interest drop would help stimulate the market but that does not seem to be happening. Renovation and Asbestos With a third of the properties thatRead More

Many investors do it on a ‘professional’ basis, in other words to make money as soon as they buy a property and then sell it on, but other investors will renovate to improve a property after several years in an effort to add value to the property, which also allows the landlord to charge a higher rate of rent. If you have a strong inclination and skill for renovation you may do the job very well and be 100% satisfiedRead More

Just because a property has been built prior to 1985, it does not mean there is no depreciation possible. It is most likely probable that a property that was built prior to 1985 has had some refurbishment and more than likely some replacement items, such as a stove, a water heater, roof and so on. These items are depreciable if they took place after 1985. A Quantity Surveyor can carry out an inspection and they will value the plant andRead More

When it comes down to the nitty gritty of the renovation it is so important to list every single item that you will be spending money on. Tip: even list the model nos. so that should the item you want not be available you can find something suitable at a similar cost. By having the model nos. written down you should be able to get replacement parts without actually physically visiting the supplier because they can compare the two andRead More

Always keep the end in mind when renovating, even from the very first moment you set the project in motion. Renovating an investment property is a strategy that has become very popular in more recent times, but there have been a lot of renovators who have come ‘unstuck’ with their renovating ideas. It is so easy to get swept up in the latest trends but if you are approaching a new strategy that you have not used before it isRead More

With a budget renovation the idea is to ‘improve the look of the property’ and give the appearance that it is worth more.  So with a budget renovation costs are very important and each cost needs to be weighed up on its merit (of course, the bigger renovations also need careful budgeting as well but their purpose is different.) The very first job is to outline the purpose!   Write in a notebook all the steps for doing the renovation andRead More

Overcapitalizing on a property investment renovation is so easy to do when an inexperienced owner takes on the renovation as the ‘renovator’. Is there any solace if this happens?  Yes, there can be, but no immediate answer. If the intention was to renovate and sell the property either immediately or within the next few years, then overcapitalizing will cause you some problems because you won’t get your money back immediately.  There will be tax write-offs and so forth which willRead More

If you have, I wonder how you felt about it after it was all completed and you could stand back and look at the whole exercise. Having completed the job you may stand back and wonder about the whole exercise and if it was worth it. Have you ever had any of these thoughts: 1.    “I copied another color scheme I had seen but it did not work in my place” 2.    “I opened up the dining and lounge areaRead More