RENOVATION GUIDE TO INCREASE PROFITS Colac Real Estate is Colacs newest real estate agency located in Bromfield Street. Sandra McConachy has 11 years experience in the industry and knows the local area well. For an expert opinion, call Sandra on 0409 523 540 or visit colacrealestate.net.au or for further information visit realestate.au Whether you feel you have a good understanding of the process or not, you must do three things simultaneously when attempting a renovation: 1.Plan your budget 2.Outline your critical path method 3.Draw – a visual representation can keep you focused Keep your path clear If there is a delay or hiccup in your path this will ultimately affect your budget and time-frame. These two tools are the most important in the toolbox. The third tip is, to get your pencil out and start drawing: broad strokes will help you build this project on paper. Visuliastion can be key Draw every stage of building the way a building professional would; experience tells us that you can stare at plans all day and you won’t understand the process and the time it may take to complete each stage unless you try to build it on paper yourself. Remember – budget for profit A popular formula for renovation for profit is a renovation budget of 10% of the pre-renovated value of the property, e.g. if the property cost you $300,000 you shouldn’t spend any more than $30K on renovating it. With these tips in mind, when considering a property as a renovate for profit project hopefully you’ll be able to quickly evaluate if the property is a good buy, approximately how long the construction period will be, the cost and profitability. Potential renovators should chart sales and do the exercise on paper several times before buying their first project. Renovation for profit and managing that process can be very rewarding and profitable but you must maintain discipline.
Posted on: Thu, 27 Mar 2014 00:04:48 +0000
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