When we aren’t conducting our home renovations, we are busy thinking about them. The thought is just so ingrained in our subconscious and active mind. All great but there is a practical side to renovations, too. After all, you must pre-assess the “is it worth going for” part before boarding on your flights of fancy.
What you must ponder over before renovating
Home renovation can some time be a caprice, sometime an emergent need but in any which situation you meet the idea, there are a set of issues you must ponder over before you renovate. Let me touch upon them for you.
Q1 # Is home renovation a profitable project?
Renovation is a down-the-drain exercise if it fails to be a worthy project. For people with money-tanks, it can be a method of giving vent to their most capricious desires (they do not mind if the end-product is sale-worthy or not) but for us mere mortals, it is important to constantly keep in mind whether we will make money on our project.
Yes, I understand you don’t intend to sell off your renovated project a day after the job is done. I am sure renovation does not need to be a site-flipping project where you buy a fixer-upper, renovate it, and sell it for profit.
Maybe you just want to undertake renovation or addition to fulfil a life-long dream- adding an extra bathroom, getting a patio done or constructing an open plan living room for yourself. This said, you still need to think as an eventual seller and ascertain that the money you put in the game today brings you decent profits when you choose to sell it later.
Q2 # Have you got ample insurance coverage?
While making modifications or renovations, you can never be too complacent about the task’s safety. For all you know, a worker might find his right arm crushed beneath a debris pile (when you blow off the wall) or the home adjoining yours might just be shaken, a wee bit too much for its comfort. In short, the job necessitates an insurance cover. A third party liability cover will do just fine.
Q3 # Do you have council approval ready?
On a distant day, when you exchange sale contracts with a willing purchaser, he will most certainly ask you to show council approvals for the renovations you have undertaken on the property. So whether you intend to remove a load bearing wall or add a swimming pool, make sure the council is happy with your project, passes it, and gives it necessary certification.
Q4 # Are you prepared for the hidden costs?
Also, expect a flurry of hidden costs which do not bother you while you are renovating but come to bite you on a later day. For instance, do you budget for the money you will have to spend renting homes while renovation is on (and you cannot access your own property). Worth a thought I guess!
How do you figure out the profitability of a renovation project?
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