There is a major difference between kit homes and turnkey homes. Kit homes are built by an owner builder, one who wishes to build their own home. Whereas turnkey homes are built by professionals, so that the client does not need to be involved with
After having done all of the necessary research and preparation, you’re now ready to start looking for a place. This is where it gets really exciting. You need to keep your wits about you, as property selection is critical. When you take your researcher’s hat
There is a major difference between kit homes and turnkey homes. Kit homes are built by an owner builder, one who wishes to build their own home. Whereas turnkey homes are built by professionals, so that the client does not need to be involved with the hundreds of steps and processes involved with building a new home. ”Turnkey” simply means that you, the client, can go to your brand new home, walk up to the beautiful front door and simply turn the key!
The process to become an owner builder is much more complicated than one might think. For instance, it’s a requirement of the Building Services Authority (BSA) that anyone who wishes to build or renovate their own home and spend over $11,000 must hold an owner builder permit, and these permits are only issued by the Building Services Authority once you’ve completed an owner builder course. The permits expire every 6 years.
Here are a few of the processes involved with building your own kit home; legal requirements, site preparation, footings and floors, wall construction, roof construction, windows and frames, doors, screens, wall finishes, ceilings, fixtures, plumbing, gas, electrical, draining, and then some landscaping to top it all off.
If you don’t have experience in all of these areas, building your own kit home could prove to be more challenging than you may think, especially tackling all the council codes, regulations and legal requirements!
We at Bush and Beach Home Builders are professionals at building sustainable homes. We know how stressful and overwhelming the process of building your own home can be, so let us do it for you! If you think assembling a piece of furniture is irritating, building a kit home is a hundred times more complicated. Instead, let us do the work for you so that all you have to do is turn the key and enjoy your unique, climate engineered Bush and Beach home.
After having done all of the necessary research, you’re ready to start searching for a property.
This is when it gets exciting. You need to have your wits about you, as choosing a property is critical.
When you get to this stage, what you want is potential for renovation.
You have to assess each property not only regarding what it is right now, but what it can be once you’ve renovated it.
Your first consideration is the state of the property. You want something that’s crying out to be renovated, but nottotally derelict (unless you really love a challenge)!Next you need to think about the needs and wants of the current market, and whether this property could meet them with optimal improvements.
Finally, you should consider how much you need to do to the property.
Some places will only need a basic style change to bring you a tidy profit.
Other properties can be totally transformed, taking them to a far superior state and unlocking superior profits.
Generally speaking, there are three kinds of properties that attract renovators:The ‘Patch ‘n’ Paint’ means it is a solid property, in good nick structurally but the decor is dated.
It will respond to fresh paint, carpet, fittings and fixtures, and the garden needs tidying up.
The ‘Fixer-Upper’ is usually older and rougher than the Patch ‘n’ Paint.
The decor still needs attention, but it also needs a kitchen and bathroom makeover.
The problem child often has structural issues.
It might have cracks in the walls or need a new roof. Perhaps the wiring or plumbing is shot and needs to be replaced. These defects can be expensive to repair but don’t necessarily return any value.
The ‘Knock-Down’ requires a complete restoration or demolition. These properties often attract developers, especially if they’re in a great location, on a large block or have fantastic views. From experience, the best places for renovating for profit are the ‘Patch ‘n’ Paint’ and the ‘Fixer-Upper’.
The type of renovation work you should do depends on your knowledge, experience, skills and contacts, but the average person should be able to renovate these kinds of properties without too much trouble.
In addition, they tend not to have a high level of risk.
Dealing with structural defectsGenerally, I advise people to avoid the properties that need serious structural work.
It’s best to spend your renovation budget on improvements that buyers or tenants can see immediately because that’s how you get results.
Spending money fixing defects that are not seen eats into your renovation budget and you may not see a buyer who appreciates quality, therefore your profits will be reduced.
Tenants and buyers expect a property to have good foundations, wiring and plumbing. They won’t pay extra for it, so the extra expenditure to fix the defect doesn’t add any value.
If you do want to make an offer on a property with structural defects you really should get a quote to find out how much it will cost to rectify the problems so you can factor that into your purchase price.
If the numbers still stack up then go for it. Plus, you can usually negotiate because most other will be scared off by the “problems”.
Don’t skimp on inspection reportsMany property investors are tempted to save a few bucks by foregoing an inspection report when they buy a property.
Don’t do it! Termite infestations, dodgy wiring, rotten foundations. There are many possibilities of problems with any home that the average person won’t notice.
And just one of these problems could cost you big bucks. You wouldn’t buy a second-hand car for $10,000 without a $250 inspection report, so why would you purchase a property for several hundred thousand dollars without an inspection report for a a little more? For your peace of mind get the inspections done. For building inspections brisbane, contact Home Inspect today or visit their web site.
Meeting market demandLet’s forget about property for a minute and think about people, because renovating for profit is a people business, not a property business.
Tenants or buyers of your renovated property are the source of your profits -from either the rent you receive or what you make once it’s sold, so to maximise your return you must develop a home that tenants will rent and buyers want to buy.
It’s the golden rule if you intend to profit from renovating houses.
If you intend to hold onto the renovated property then you need to research your target tenants for the area.
When you match a property to target tenants you’re less likely to have down-time with an empty house, or need to cut therent to get someone in.
Talk to property managers and find out what type of properties are most desirable in the area. Tell them you’re looking at buying an investment property in the area, and ask them what tenants prefer.
What sort of property is in short supply? What rents the quickest?In this suburb do tenants prefer houses or apartments? Do they prefer one, two, or more bedrooms? Do they require parking or not? You need to know these facts before you can make an informed decision on what to buy.
If you intend to sell the property after renovating it, the same principle applies but now you must consider the wants and needs of buyers rather than tenants.
While there are a lot of similarities, there are differences you should cater for.
And finally, although there will be some features of the property you can improve, some features, such as the location and aspect, etc, are fixed.
You can do a first class renovation, but if the property backs onto railway tracks you can expect to trouble renting and selling it.
This is why property selection is so critical. Remember, you may be able to improve a house, but you can’t improve its location.