10 Serious Property Investment Mistakes to Avoid
For property investors, there’s a lot of focus on cash and capital. It’s all about crunching numbers and working out how much of a profit is guaranteed, after the hard work and tough choices have been made. Much less attention is given to the daunting number of practical tasks and responsibilities involved with renovating an entire building.
Whether this is your first development project or you’re an experienced developer, with multiple projects under your belt, the objective remains the same. You’re looking to increase the value of the house by enhancing its existing features. This might mean redesigning the kitchen. It might mean adding a second bathroom. It may even mean building an extension, as a way to expand the amount of available floor space.
Whatever your plans and dreams for the next big development project, make sure that you avoid these deadly property investment faux pas.
- Rushing In Too Quickly
It can be frustrating to have to delay renovation work, but there is no point starting large scale projects until you’re sure that the property is structurally sound. Before you begin work, have the house thoroughly inspected for underlying problems like damp, weak walls, and pest invasions. Make booking in a termite inspect in Melbourne one of the first things that you do.
- Using Cheap Materials
While it is possible to renovate on a tight budget, this type of project shouldn’t be undertaken unless you’re sure that you can complete it to a high standard. It’s all about increasing value, so the materials that you use need to be of a high quality. Look for great deals and negotiate where possible, but don’t skimp on quality.
- Settling for Bad Measurements
If there’s one thing that’s guaranteed to derail a renovation or construction project, it’s poor measurements. If you’re working in an area like the bathroom or kitchen, inches matter. Accurate measurements are the only way to make sure that appliances fit, plumbing is compatible, and everything works as it should.
- Instantly Gutting Everything
Just because you’re renovating, it doesn’t mean that you have to start from scratch. The kitchen is a space where lots of existing features can be salvaged. This saves you valuable money, time, and effort. For example, you could retain the layout of a kitchen, so that you can simply slot new features where the olds ones once sat.
- Sizing the Bathroom Wrong
Adding an extra bathroom is a classic way to increase the resale value of a property. However, you might find that you’re working with a limited amount of space. It doesn’t have to be a problem, as long as you invest in appropriately sized fixtures and features. Buy narrow sinks, low profile toilets, and multidimensional storage solutions.
- Forgetting About Lighting
The impact of great lighting should not be underestimated. It should also be integrated with the actual design process, not tacked on to the end as an afterthought. To create attractive, responsive lighting, throughout the property, match your choices to the mood of each room.
- Failing to Plan for Chaos
One of the biggest mistakes that new developers make is underestimating just how hard a large scale project can be. It will take longer than you expect and it will involve a lot of blood, sweat, and tears. It’s not easy to completely transform a home, so don’t expect it to be.
- Compromising On Safety
No matter what direction your renovation takes, safety is paramount. If you are working alongside outsourced companies, check that they’re fully insured. That way, they’re responsible for providing the right safety equipment and tools. Your job is to make sure that the site itself stays safe.
- Abandoning the Contractors
It can be tempting to assume that, once the contractors are happy to get started, your role is over for a while. This is not the case, because you should be on site as often as possible, keeping projects on track and chatting with builders about what needs to be done. Stepping back from the process is the fastest route to failure.
- Doing It for the Wrong Reasons
To have a chance at success, you need to be fully committed. The only way that it will work as a casual hobby is if you have an awful lot of money to lose and don’t much mind if a development project goes sideways. This isn’t the case for most people, so don’t start such a massive undertaking unless you’re passionate about the end result.
Working Out Where to Start and How to Do It
It can be really hard to know exactly how to start such a large project. Do you begin with one room and move outwards or try to work a little on each, all at the same time? While your plan of action will be personal to you and the property, taking some time to consult a redevelopment expert is a good way to identify its strengths and weaknesses.