Thursday 24 June 2021

How To Make Money From Property Renovation

Property renovation can be a lucrative investment that offers a fantastic return. However, renovations can be challenging and it’s easy to end up losing valuable time and money by investing in a bad project.

To make a profit from home renovations, you must do careful planning and plenty of research. Therefore, it is vital to know some useful tips on how to make money from property renovation.

Research the neighborhood

The location you choose will play a crucial role in how profitable your renovation project is. For that reason, you must conduct thorough market research on any neighborhoods you’re interested in. You should aim to purchase property in a desirable neighborhood with plenty of sought-after amenities like good local schools, doctor’s surgeries, and shopping centers. Keep in mind that you can’t change a street or area, but you can completely transform a house with repairs and improvements.

- Advertisement -

You also need to determine the average sale price of homes in the local area. This will help you get an idea of the profit you’re likely to turn over from your investment. You can easily obtain this information by asking a real estate agent to obtain a Multiple Listing Service (MLS) report for you.

This will give you details of any properties that have been listed and sold in the local area. It is also a good idea to try and find out what house prices are likely to be like in a few years. For instance, house prices are likely to go up if a brand new state-of-the-art hospital is due to be built in the area in a couple of years. You can find valuable information on upcoming market trends by reading local newspapers, speaking with real estate experts, or researching online.

Find the right property

Once you’ve decided on the neighborhood you want to invest in, you will need to find the right property to purchase in that area. You need to consider how much time and money you have available to put into the renovation project.

Some properties only require minor improvements to get them ready for resale. However, these properties typically turn over a small profit. Whereas, derelict buildings while may require years of renovation works could give investors a substantial return on investment. If you’re new to property renovations, then professionals recommend choosing a smaller project that is fairly low-risk.

- Advertisement -

You should start by calculating your After Repair Value (APV). Experts at explain how the APV provides an estimate of the future value of a property once improvements have been completed. You can calculate the APV of a property by adding the value of renovations to the purchase price of the property.

Make sure you bring your contractor to any viewings, so you can work together to identify what work will give you the best return on investment. Some popular renovation projects include kitchen remodels, replacement windows, and bathroom upgrades.

Hire your renovation team

It is essential that you hire a team of contractors with the skills and knowledge needed to carry out the property renovations safely and to a high standard. Make sure you consider your options carefully and ask friends, family, and neighbors for recommendations of good contractors in the area.

Once you have a team in place, check in on them regularly to get updates on the progress and expected completion dates.

You also need to consider the cost of any additional equipment that may be needed during the renovations such as scaffolding. Several home improvement projects require scaffolding to be completed safely. This includes extension projects, loft conversions, and painting the exterior of the property.

Keep in mind that scaffolding is essential for any renovations that require working at height because of health and safety laws. If you do require scaffolding for a renovation project, then Global Scaffold offers an extensive range of scaffolding available on their website, so be sure to check out what Global Scaffolding sales you can get.

Set a realistic budget

- Advertisement -

You must be realistic with your budget and be aware that renovations typically cost more and take longer than you expect. According to Finder, property experts recommend that you should aim to spend a maximum of 10% of the property value on renovations. Make sure you remember to factor additional costs such as the deposit, stamp duty, and mortgage repayments when calculating your budget.

You must allocate your budget towards different aspects of your renovation project. Monitor your expenses carefully and refer to your budget regularly.

Remember that overspending on your budget will eat into your profit margin, so it should be avoided whenever possible.

- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Carter Maddox
Carter is self-described as thirty-three-and-a-half years old and his thirty-three-and-a-half years birthday is always on March 3. Carter characteristically avoids pronouns, referring to himself in the third person (e.g. "Carter has a question" rather than, "I have a question"). One day [in 1984], Carter, raised himself up and from that day forward we could all read what Carter writes.

Related Articles

Today 50 years ago: Costa Rica and Panama entered into conflict over air routes

TODAY COSTA RICA - Original text published in La Nacion on...

New tax exemptions would be the hook to attract high-tech and science companies

QCOSTARICA - Strengthen the attraction of Costa Rica to attract high-tech,...


Today’s Covid News: Less than 800 new cases for the first time in two months

QCOSTARICA - For the first time in two months, less than 800 new cases of covid-19 in a single day were registered on June...

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world. The coastline is blessed with golden sand, beautiful palm trees, and perfect blue...

Today’s Vehicle Restriction June 23: plates ending in 5 & 6 CANNOT circulate

Today, Wednesday, June 23, plates ending in 5 & 6 CANNOT circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

Today’s Vehicle Restriction June 21: plates ending in 1 & 2 CANNOT circulate

Today, Monday, June 21, we are back to the two plates that cannot circulate, in today's case plates ending in 1 & 2 CANNOT...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

Today 50 years ago: Costa Rica and Panama entered into conflict over air routes

TODAY COSTA RICA - Original text published in La Nacion on June 23, 1971 - A conflict over air routes, has been unleashed between...

Today’s Vehicle Restriction June 24: plates ending in 7 & 8 CANNOT circulate

Today, Thursday, June 24, plates ending in 7 & 8 CANNOT circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

Tico tried to enter via San Jose airport with ¢93 million in cash

QCOSTARICA - A Costa Rican tried to enter the country through the Juan Santamaría International - San Jose Airport - with US$153,244 (the equivalent...

Flight paralysis from Canada hits Costa Rica’s tourism

QCOSTARICA - The paralysis of flights from Canada last January hit Costa Rica's tourism sector, as Canada was the second source market for tourists...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.