Skilled Migrant Professionals February 2015 | Page 25

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pay for the property you are looking to buy.

Tip 8 - What sort of renovation should
you do?: It is important to understand the requirements of the market in the area you choose: Are the
majority of buyers looking for 4 bedroom, 2 bathroom
homes? Or, are 2 and 3 bedroom homes more popular?
Identify your target buyers. This will help you decide
the type of renovation you will do, as well as the styles
and colours you choose– will it be bland, neutral, or
bright? Modern or traditional?
You should do the cosmetic renovations first – the
most obvious renovations are usually the most important
and the ones that will result in the best return on your
investment. Look through the house and decide what
you are going to do on a room-by-room basis.
Things like painting, fixing kitchen cupboards and
redoing high traffic or work areas are very noticeable
improvements that can improve your return. It’s also a
good idea to look for items that people expect to find in modern houses like dishwashers, dual flush toilets, a spa, reticulated
gardens, new kitchens and laundry appliances.
Tip 9 - Making the offer: Talk to the agent who is selling the property; ask them as many questions as you need to in
order to get an idea of what the sellers might accept. Never go
above your “walk-away price” – there’s no point in paying more
than you can afford.
If you are in the property renovation game to make a profit, then this should be your focus. Be sure to get pre-approval
from your financial institution, as this is good for the real estate
agent to know when taking offers back to the sellers.
Tip 10 - Getting the renovation done: You should get
three quotes for every project, every single time!
Organise and schedule in the tradespeople before the settlement (remember, time is money). Set firm dates for the start and
finish of the project when booking jobs and offer incentives for
early completion.
Meet with the tradespeople before they start and be available and approachable throughout the process. Reconfirm with
all your tradespeople two days before they are due to begin
working. Pay your tradespeople fairly and pay them on time. If
they’re a part of your team, you don’t want to create ill feelings.
Thank your tradespeople for the work they do for you, and
try your best not to change your mind during the job – this will

cost you additional money and irritate them. Listen to their advice. They are professionals and will probably know more about
what they are doing than you.

Tip 11 - Getting a Good Real Estate Agent: Be prepared to pay more than market rates for the best, most effective
and most helpful real estate agent. Their value is not exclusively
related to their ability to negotiate the best deals and create the
best marketing plan to sell your house (although these are very
important). The real sign that you’re dealing with a professional
is when they start calling you regarding properties they have
seen that match what you’re looking for.
If they understand your desire to renovate for profit, they will
actively search for properties that fit your requirements. Obviously, if they can sell you the house that you make money from,
then you are more likely to let them sell the house when you
are ready to put your property on the market and cash in on
your investment.
Tip 12 - Renovating isn’t just about buying and selling: Renovating can also be a buy, renovate, and hold process,
which may open you to neutrally gearing the property.
Make sure you don’t get emotionally involved in the buying
and selling process of your homes. Remember that you are doing this to make a profit; the best results are achieved by people
who stick to their budgets.
February 2015 | www.smpmagazine.com.au

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