You certainly can’t doubt the amazing weather Queensland throws out almost daily. But, you can and should doubt a property that doesn’t have any problems. Factoring in more money on top of your Queensland home renovations budget isn’t the ideal situation when looking for a property to renovate.
So how do you make sure you don’t get stuck with a dud and a renovation you wish you hadn’t gone ahead with? Firstly, manage your mindset. Avoid emotional buying just because you ‘really like it’. Impulses will land you making the wrong decision. Instead, follow these tips and keep them handy during your inspections.
Renovations should be about what will add value
It’s a frustrating thing but, structural repairs take up the most of a budget during a renovation yet bring about the least value; they can throw any renovation budget entirely off track. This includes things like roof repairs, fixing a driveway or concrete outdoor area, restumping, rewiring the electricals or removing asbestos. The moral of the story avoid properties with structural problems as much as you can. It’s the cosmetic additions like installing a brand new kitchen, new bathroom, new flooring, paint, windows and lighting that add equity.
What exactly do we look for?
There are plenty of apparent defects you can look out for when you’re inspecting a property, these include:
- Cracks in the floor and walls
- Unsquared walls
- Foundational cracks, settling, dropping or disturbance.
- Signs of house movement (cracks, uneven floors, doors and windows that won’t close)
- Rotting timber
- Flood damage
- Old and damaged stumps
- Old and dangerous wiring
- Cracked, rusted or leaking roof
- Unsealed doors and windows
Once you’ve gone through and completed a preliminary check, you’ll have a fair idea as to whether or not the defects will put you over budget. If you’re happy with what you’ve found (or haven’t found) take extra precaution and get the second opinion of a qualified building and pest inspector. They have the right knowledge and equipment to carry out comprehensive inspections; they can see what you can’t. You may also have to get an electrician or plumber do a further inspection and quote on areas outside the building inspectors scope. This will give you a more accurate idea of what you need to spend on repairing the defect.
But not all is lost if you’ve found defects, you can use these as a negotiation tool when negotiating the purchase price of the property.
It can be exciting running with the idea of renovating an existing home when you think you’ve found the perfect one, but one thing some people forget to factor in is capital. It’s not worth renovating an existing property if you end up overcapitalising.
So how do you work this out before you proceed? Ask a local real estate for property advice like what they consider the current property price to be and what it would be worth if you were to renovate it. This will give you a good idea of what your budget can safely be, so you don’t overcapitalise.
Right now, interest rates are at an all-time low and the home builder grant is available to eligible applicants. There’s no better time for Queensland home renovations. But do yourself a favour to get the most out of your investment, do your due diligence and check the property over.
Queensland Property Experts provide expert advice on buying and selling real estate in Queensland. They share industry insights, trends and tips on selling, buying, sale price and more.