Top tips for renovating for profit
Renovating for profit isn’t as straight forward as a coat of paint and adding instant value to your property. Real value means time and money invested. We have other blogs about what to actually renovate to increase value in your home which you can find here but this blog is our top tips to set you up for renovating success.
Especially if renovating is new for you or out of your comfort zone or skill set, put your personal style aside and research the improvements that are most likely to add value for your particular home, your area and the current property market. Put your money into what people value based on these criteria. Remember making money renovating isn’t about your personal style but on your target audiences needs.
Cost blow outs renovating undoes all the value add you were trying to accomplish for your property, not to mention cash flow issues and being able to complete the renovation. Before any purchases, make sure all renovation costs and a buffer for blow out allowances are accounted for. Many trade stores have experts who can help you estimate costs and draft a budget for you.
3. Make it Simple
It’s not always the major bathroom and kitchen renovation overalls that add value to your property. If your budget is tight, there are still many low cost improvements that could still increase your properties value. Instead of a total bathroom overhaul, new paint and bathroom fittings could work. New light fittings, new door and window handles, new floor coverings.. the list goes on that can help rent or sell your property for more by the look and feel and updated style of your property.
Having a network of renovation experts can assist you greatly in saving time and money. Developing relationships and rapport with painters, electricians, plumbers, roofers and even cleaners will ensure they do the best job on your renovation.
Renovating for property may look easy on those reality tv shows, but it is a skill that needs practise. Research shows that to maximise your renovations, as a property owner looking to profit, every $1 you spend on the renovation should return $2.
How do you choose the right real estate agent?
Choosing an agent is one of the most important parts of selling your property. They will responsible for many aspects of the sale including listing, marketing, negotiating sales and legal aspects.
To choose the right business partnership in a real estate agent for your real estate transactions comes down to three parts.
Part 1) Research
With websites such as realestate.com.au offering a “find an agent” tool as well as many real estate websites offering profiling information on their agents, makes searching for the “right one” a lot easier.
Blogs, reviews and recommendations from previous clients on websites and social media will also assist you to make the right choice.
Search for agents in your local area is a great starting point and arrange initial appraisals/appointments with them.
Asking questions or finding out information such as: what is their experience as an agent, how long have they worked in the area you’re selling, how many property sales have they recently been involved in/currently have listed as well as their ability to answer your specific property information. These are all important things to find out so you get an idea how they can best serve you and your selling goals.
Part 2) What to look for in an agent
As well as their ability to answer the above questions they should have a high degree of professionalism, a good reputation and are passionate about real estate. Below is a great checklist to use when meeting real estate agents:
- Are they able to meet your requirements? Not theirs?
- Do they have the necessary professional credentials such as real estate institutes, memberships and the like?
- Do they have a good reputation and references from past clients?
- Do they know your local area well? Property and community?
- Do they have experience in the price bracket you’re selling?
- Do you feel you can trust them to deliver? Are they committed?
Part 3) What the agent should provide
Before signing the dotted line, ensure your agent provides you with:
- Market sales and appraisal data in your area
- Has a good buyers database to contact
- Shares advice on how to best market and present your home with marketing strategies
- Advice on the best method of sale (auction or private, home opens etc)
- What the negotiation services will be between you and a potential buyer
- Open and ongoing communication about your sale progress and whether changes are required
- Effective execution of legal and financial requirements.
These are just a few of the initial things you need to consider when selecting an agent.
Once you’ve found the right agent for you, now is the time for a written contract to be drawn up. We will be doing another blog article on what to look for in real estate agreements.
Next week we will be sharing with you our real estate tool kit so keep an eye out for it in your inbox!
So your home loan has been rejected. What now?
With recent changes to lending requirements and banks sharpening their pencil in regards to the amount of investment and consumer loans their allowing, it’s now becoming harder than ever before to achieve finance.
If you’ve been rejected for a home loan don’t panic! Different lenders have different criteria for mortgages, and one rejection doesn’t mean that you won’t be able to buy a home.
Here are some simple yet effective steps that can assist you getting back on track and achieving a successful outcome on your next application.
1. Ask why you were rejected
Your lender should be able to tell you the reason/s why you were rejected, which will give you the opportunity to change and fix things before your next application. It could be something simple that you missed!
2. Review your options
Create a plan before applying again. Research different home loan lenders – the more you know, the more informed you’ll be to make the best decision on who to partner with to get approved.
3. Check your credit profile
Sometimes lenders decline because of your credit history. You will need to solve any outstanding issues with your credit file before applying again. If you do have late payment, missed bills get your finances in check and have reasons to explain your financial history to your next lender. For the future, ensure you pay bills on time and develop a regular savings plan. The more reliable you are financially, the better you will appear to future lenders.
4. Review other debts
If the reason you were declined was credit card or other debts, look at consolidating or clearing your debt before undertaking any new loans. Reducing your credit limits or even cancelling cards can go a long way in the eyes of your future lender.
5. Don’t give up
Only those who give up fail!
Always try again, there are plenty of lender options out there. There’s bound to be one that matches your budget and needs however you may need to change your expectations in terms of what you can realistically afford in repayments and what you can borrow.
If you are rejected for a loan the key is not to panic. Loan rejection isn’t uncommon and it certainly doesn’t mean you will never be able to secure finance. Provided you show you’re a reliable financial customer with a good credit history and a sound savings strategy, you shouldn’t have too many difficulties obtaining finance.
6. Appoint a broker
I still believe that finance brokers are the best option currently for securing finance. A good broker’s knowledge about the mortgage landscape, current stipulations with different lenders and suitability to your personal circumstances can prove invaluable when trying to access funds. Please as you continue to build your portfolio the broker becomes an advisor on your journey aware of your personal lending history, needs and ultimate goals.
It can be confusing what type of mortgage to get. It’s not only important to check the right rates for you but make sure you’re getting the right features in your home loan.
At CPG our brokers work for you and help whether it’s a simple rate comparison or a full financial health check – talk to one of our brokers today