Selecting a suitable renovation candidate - Part One
Many first
time renovators make the mistake of rushing into their first project. They are
excited and ready to start and unfortunately end up purchasing a property that
is not suitable for renovation. They convince themselves that they will be able
to fix the problems that impair the property. Sound familiar?
There are a
number of characteristics you should look for when scouting a suitable property
renovation candidate:
Similar
style
People
typically prefer to live in a relatively homogenous neighbourhood, where the
properties have a similar style. For example, a run down character or period
home in a character or period home area would generally be a good prospect.
Open floor
plan
Open floor
plans and flexible living are a desired part of today’s lifestyle. The floor
plan needs to flow well or an opportunity needs to exist for the property to be
altered (preferably requiring only minor structural change). The property must
be able to accommodate today’s living requirements, such as large dining areas
for entertaining and predominantly double bedrooms. You should always have a
tape measure with you when inspecting property to renovate.
Privacy
An important
feature in any property is the ability to maintain privacy and present a
pleasant outdoor entertaining area. Being overlooked by adjoining properties is
a serious detriment, especially if it cannot be addressed.
Off Street
Parking
If it is not
available, you should assess whether it can be added – perhaps to the rear via a
paved lane or perhaps the front if it does not compromise the property? Will the
council permit covered parking to be installed? If there’s no opportunity to
provide parking then this becomes a flaw that may make it harder to sell or
rent.
Property
with a sense of style or charm
Some older
homes that were butchered in the 60’s and 70’s by horrible alterations can
possibly be returned to their former self. If the property was built in the 50’s
through to the 80’s then it is less likely to have any style or charm that is
appreciated today.
Natural
light
Does the solar
orientation of the property provide for an aspect that lets plenty of winter
sunshine into the courtyard areas and the living spaces? Is the home protected
from summer sun? Does the inside of the home have lots of natural light? Can
dark spaces be fixed, perhaps with skylights? Natural light and solar
orientation are becoming more important in the purchase decision.
So be
aware, although all properties can be renovated not all properties can be
renovated successfully and for a profit. Look out for our next newsletter in
which we’ll discuss some of the less desirable characteristics to avoid.
For more
information on how Miriam Sandkuhler can help you find and evaluate a great
investment property, you can contact her on 1-800-000-159 or email
info@momentumwealth.com.au
