Renovations Are The Order Of the Day
Times are still tough out there in the business world and with all this uncertainty anything to do with finances seems to have stagnated. What always seems to happen in the housing industry in times like this is renovation rather than selling and buying again.
I am sure you know a number of people who are not selling due to the fact that prices have slumped. Some areas in certain locations have increased but there are a number that have not and of course with all this uncertainty people are not prepared to sell and then find themselves in a situation of change prices.
By doing the alterations it is easier to get the smaller loans and often jobs can be done with cash as the cash comes in.
Getting new finance for a larger house is also part of the contributing factor encouraging renovations rather than moving.
When renovating, one of the very important things to remember is not to over capitalise. Don’t go spending $50,000 to only improve the value of your property by $30,000. Choose carefully what to renovate and make sure you keep the theme of the house the same all the way through.
Kitchens, bathrooms and ensuites are the main areas that if renovated and modernised, will add value to a house. Adding garages, family rooms and bedrooms are also popular and profitable additions.
Whether it is for your own home or for an investment property, make sure the renovation works well and adds value.
Remember when doing investment property renovations get in touch with your Quantity Surveyor and work with them to save extra money, not only with the renovation costs but also your tax depreciation after completion.
Filed Under: Renovations • Tax Tips
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