4 Lessons To Learn From This 70’s Reno And 4 Things We May Have Done Differently.
We are the first to spruik the ugly duckling with good bones and a view to add value through renovations down the track. There are many reasons for this, you can do the work to your personal taste and ensure you’re spending a dollar to make 3 just to name a few.
However these conversations always come with a few caveats, some are depicted in this gorgeous Rockley Road apartment… Which we must confess still sold well, despite the laundry being in the walk in robe!!!
Let's get into it…
Don't over capitalise.
It's easy to get carried away. But don't. Especially when it comes to apartment renovations. Always keep your future buyer in mind, most people can't tell the difference between custom and Ikea cabinetry. Buyers generally care more about the liveability and functionality of the space rather than bespoke marble benchtops. Depending on the ceiling value of the property, high end finishes may not add as much value as you expect them to.
Increase the icon numbers.
This is gold, and where you'll really be able to see a return on your investment. We often buy single fronted Victorians that have rear lane access, but no roller door. Just by installing one, you can now sell the property with a car park! And just like that you’ve added up to $100k in value to your home (pending location of course!). Same with apartments.. If there’s room to add an ensuite, do it. You're suddenly selling with an extra bathroom, which people will pay extra for! This apartment certainly had the space to do it.
Look at the future numbers.
If you are renovating to flip, ensure it makes sense from a numbers perspective. Yes, the market can fluctuate during the renovation and that can change things.. But for instance, when the vendor of this property bought it in 2020, they may have done a quick search to see if there were any other 2 bed 1 bath 1 car apartments of a similar size that had sold for approx. $1m. If there were, that gives you proof of future potential value. Check out the quality of the renovations done in these superior properties and what features they have added that yours doesn’t have.
Look at your future buyer.
Work out who your future buyer is and what they want out of a property, and then cater to that. Go to local agents or the agent you bought the ‘renovator’ off and ask them what gets buyers paying more on auction day. How are you going to add the most value, is it by keeping is super neutral or by injecting some cool current elements, what level of appliances are they expecting to see?
Let’s take a look at what we would have done differently…
Knock out part of the kitchen wall to create a breakfast bar and increase flow between the kitchen and dining.
Spend less on kitchen cabinets and benchtops and instead turn the bathroom and walk in robe into a central bathroom with laundry and an ensuite.
Keep it neutral and inject personality with furniture and styling. Paint walls and built in robes white. High end carpet in the bedrooms to soften the apartment. Mass market appeal is what we’re aiming to achieve here, a bright green Lamborghini is harder to sell and depreciates more than the same in silver!
Use an advocate to buy the property initially, walk you through the appropriate renovations ensuring you’re keeping your future buyers AND bottom line front of mind, and then use us again to help you sell the property to maximize the end result, DUH!
And that’s all folks, let us know what you would have done differently??!
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