After having done all of the required research, you’re ready to start shopping for a property. This is when things get really exciting. You must keep your wits about you, as choosing a property is critical. When you get to this stage, what you’re looking
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 the essential research and preparation, you’re now ready to begin looking for the right property.
This is when it gets exciting. You must keep your wits about you, because property selection is critical.
When you get to this stage, what you want is potential for renovation.
You must assess each property not only on what it is right now, but what it could be once you’ve done your magic to it.
The first consideration is the condition of the property. You’re searching for a place that’s crying out to be renovated, but notutterly derelict (unless you really like a challenge)!Next you need to consider the mood of the local market, and whether the property might meet them with optimal improvements.
Finally, you should consider how far you can take the property.
Some places just need a quick fix-up to make you a good profit.
Other properties can be completely transformed, bringing them to a far superior state and unlocking higher profits.
Roughly speaking, there are three types 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’s begging for fresh paint, carpet, fittings and fixtures, and the garden needs a revamp.
The ‘Fixer-Upper’ will generally be older and rougher than the Patch ‘n’ Paint.
The decor still needs attention, but it should also have a kitchen or bathroom makeover.
The ‘Fixer-Upper’ often has some structural issues.
It may have cracks in the walls or need a new roof. Possibly the wiring or plumbing is shot and needs to be replaced. These problems can be expensive to put right and yet won’t necessarily return any value.
The ‘Knock-Down’ says it all, requiring a complete restoration or demolition. These properties often attract developers, particularly if they’re in a great location, on a large block or have fantastic views. From experience, the best bets to renovate for profit are the ‘Patch ‘n’ Paint’ and the ‘Fixer-Upper’.
The type of renovation work you should attempt will depend on your knowledge, experience, skills and contacts, but the average person should be able to do up these types of places without too much trouble.
In addition, they don’t tend to have a high level of risk.
Dealing with structural defectsIn general, I advise people to avoid properties that need serious structural work.
It’s best to spend your renovation budget on improvements that tenants or buyers can see as that’s how you get results.
Spending money fixing defects that are unseen eats into your renovation budget and you may not see a buyer who appreciates quality, therefore your profits will be reduced.
Basically, 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 decide 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 and 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 going without inspection reports when they buy a property.
Don’t be tempted! Termite infestations, dodgy wiring, rotten foundations. There are many potential problems with any home that most people won’t notice.
And just one of these problems can cost you big bucks. You wouldn’t buy a second-hand car for $10,000 without a $250 inspection report, so why purchase a property for several hundred thousand dollars without an inspection report that just costs 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 despite what most renovation newbies think, 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 need to develop a home that tenants will rent and buyers want to buy.
It’s the golden rule if you want to profit from renovating houses.
If you intend to keep the renovated property then you need to research your target tenants for the suburb.
When you match a property to target tenants you’re not going to have vacancies, or need to cut therent to get people in.
Build a good relationship with property managers and find out what type of properties are desirable in the suburb. Tell them you’re looking at buying an investment property in the area, and ask them what tenants prefer.
What sort of property is needed? What kind rents the quickest?In this suburb do tenants prefer houses or apartments? Do they want one, two, or more bedrooms? Do they require parking or not? You should know these facts so you can make an informed decision on what to buy.
If you intend to sell the property once you’ve renovated it, the same principle applies but now you must consider the wants and needs of buyers rather than tenants.
While there are some 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 selection of a property is so critical. I always say, you can always improve a building, but you can’t improve its location.
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.