Property renovations are beyond exciting and a great way to advance your investment experience and portfolio, however, there is a lot to consider along the way.
Our experiences have allowed us to determine six lessons which we believe are important for new investors to consider throughout their investment.
Many first time investors become too keen and want to get started right away, however, this only increases the risks. By taking note of our six lessons you can potentially reduce the risks that arise during property investment.
PlanningProperty renovation projects are HUGE so plan, plan, plan. Ask anyone and you will learn that by developing a plan you set the path for your success. A clear plan allows you to visualise the route to completion and how you will get there.
A solid plan keeps everyone and everything on track, consequently, this will reduce your stress surrounding your renovation as you will have a knowledge of what is happening at each point of your project.
Your plan will also establish an outline of your potential spend and requirements. This will be beneficial for others working on your project, permitting them to use your plan as a point of reference, allowing them to work efficiently.
Think - Don’t Dive InWe understand the desperation to secure an investment property and to get started and stuck in, however, it is vital you are patient and think before diving in. Invest with your head not your heart.
With the financial commitment property investment brings it is critically important that you do not rush into anything. By having an attitude that causes you to rush into an investment commitment you increase the risk of investing in a property that is riddled with issues.
This could mean you are left spending more than you make.
By taking your time and considering your options you will secure a property which is a better fit to your property investment objectives.
Expect the UnexpectedDespite having a solid plan in place there is still the potential for things to deviate from your plan. By expecting the unexpected you can prepare yourself to be resilient and approach the problem logically rather than failing under the panic of issues arising.
These issues can cause budget and time restraints but by setting aside a fraction of these in your plan you will have a buffer in place to allocate to these.
Careful ConsiderationsA renovation which is more than painting the walls and putting fresh flooring down is going to be timely and a lot of effort, therefore, it is important to take time and care. Make careful considerations before committing to a decision.
Consider the property, consider the surrounding properties - what are the possibilities with this investment?
Take a look at the layout of the property and determine if your plans will work well. While the end result of removing walls to open up the space or adding an extra bedroom are great for investment properties they take incredible time and financial commitments - consider this and make sure you are ready.
Additionally, while it can be tempting, try to work to reality rather than a dream. Making your investment an attractive home is important but it’s essential you consider the long term. Forget about the latest trends and try to embrace timeless decor, afterall, rooms can be transformed through accessories rather than wallpaper trends.
Budget is EverythingEveryone says it all the time and they’re not going to stop any time soon. Your budget is everything when investing in a property. Buying the property is not enough. Good investments are those you can add value to and you will need a budget to do this.
Having an adequate budget to carry out your plans is common sense, however, as previously mentioned, reserving budget for the unexpected is wise. With a budget ready to deal with problems you’ll reduce your risk of being sent into shock.
Trust Your TeamRenovations are often a big project and one you can rarely do alone, therefore, having a strong team is a must. With a strong team behind your renovation you can trust the standards will be high.
Big projects take time if you want them done well, meaning it is essential that you trust your team and the process. It may seem and feel a bit hectic at stages but by working with an experienced renovations team you can enjoy the process and happily monitor the project progress.
The success of a renovation comes from strong communication between an investor and their team. Part of this communication will come from your plan - highlighting to everyone where they need to be, what needs to be done and when. With great teamwork and communication anything is possible - after all ‘teamwork makes the dream work’.
ConclusionThere are many areas for an investment to excel beyond your expectations but equally, there are multiple areas potential issues can present themselves. Therefore, it is essential you are prepared with a plan in place.
Having a plan in place gives you the advantage of visualising the road of your renovation. This will keep everything on the right path.
Be mindful and consider all options, later determining which suit your objectives best. This will ensure that your property investment is the right fit for you, which will ultimately lower the risk of disappointments along the way.
Unfortunately, property is not exempt from unexpected problems introducing themselves, however, an awareness of this can help your mindset ready itself for any potential nasty bombardments.
Trends are great but they have a sell by date. With this in mind, choose a decor that will last against time. This can attract more potential tenants and reduces your need for interference where decorating is concerned.
Budget is king in investment. Your budget determines what you can and can’t do. Having an adequate budget will open your opportunities and contribute to your investment’s success.
Working with a team you can trust will make the process easier and allow you to enjoy the process of your renovation project. A strong team will have the ability to work from their own initiative and follow the earlier suggested plan, reducing your stress.
Disclaimer: This is information based on our knowledge gained throughout years of experience, education and learnings. This information is open to interpretation, therefore, you must carry out your own due diligence regarding the subject.