In a market with rapidly rising prices, it’s even easier to overspend.
But to get the best bang for your buck, it’s wise to be more cautious, say the experts.
“In a city like Sydney, property values will still double every seven to 10 years,” says Phil Lovell of architectural builders Lawson and Lovell.
For the best returns, investors should design their property in a way that has a timeless appeal.Credit:Charday Penn
“And if you’re in an exclusive area as an owner-occupier, by the time you’ve finished your renovation, your home will have increased in value a lot.
“But with an investment property, it’s important you go with a reputable builder and be careful not to overcapitalise.”
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It’s also critical not to be too avant-garde with the renovation of an investment property, warns Peter Georgiev, director of Archicentre Australia.
He was once asked to design a bathroom in a house with clear glass walls, but persuaded the owner to add some etchings to the glass to avoid everyone outside seeing everything.
Another notable trend to avoid, he advises, is having a bathroom in a bedroom.
“But real estate prices generally are going up so much, and rents are so healthy, that whatever you spend, eventually the marketplace will give it back to you,” Georgiev says.
“And if you go into debt to renovate, now is a good time with such low interest rates.
“But generally, with an investment, you just want to create something that’s nice and clean and neat.”
That also means something that’s not too in vogue, which will date easily, agrees Botzolis.
“If you’re spending a lot, go more for something Grace Kelly and rather less the Kardashians,” she says. “You want it to age well so you can follow the money, rather than the latest trend.”
What you need to know before renovating an investment property
Source: Philippines Alive
