Home
>
Personal Finance
>
Avoiding A Nightmare On Renovation Street

Avoiding A Nightmare On Renovation Street

You've decided you want a bigger, better and more desirable house. How do you determine when to renovate, what to do and importantly, how much will it cost and will we get our money back?

Unless you're in the building industry, most people are fairly na?ve when it comes to making decisions about renovating. Poor choices can be costly, especially if you over-capitalise and spend too much money on the house of your dreams.

Michael Hoad of the Subiaco offices of real estate agents Paxton Hoad says many people make the mistake of not planning and fully costing their renovations.

"Any form of construction costs more than you think when you start and many people don't understand or underestimate what it costs to renovate."

"They make a lot of mistakes, often costly ones, such as why did I do that, I wish I made that smaller or bigger," he said.

Hoad also believes renovations date and what looked wonderful and up to date in 1985 may now look totally out of place.

"Everything has a life span and people really need to work out how long they're going to be in the house and the purpose for the renovations."

To avoid overcapitalising he recommends potential renovators look at the suburb and get a feel for what property is worth in the area before committing.

He gives the example of Subiaco, where land is tight, "if you've got a spot, in a half reasonable location, you'll get your money back and more."

He gives the example of owners in the suburb spending between $250,000 and $350,00 on renovations.

"The greatest increment is in the value of the land, houses generally depreciate offsetting increasing construction costs."

He also gives the example of a house valued at $400,000, where the transaction costs of moving cost more than $26,000 once agents fees and stamp duty are taken into account.

"Renovating is rewarding, it appeals to some people. Some people love it and others are not so creative," Hoad said.

Fremantle based architect, Philip Nikulinsky says many renovators get emotionally attached to a house and this is where they either overcapitalise or compromise the design of the renovation.

"A lot of people spend too much on the finishes and go overboard, that's when it becomes expensive."

"You've got to look at the end product. Every time you do something a bit different you're going to have to pay for it,' he said.

He says any significant renovation starts at around $120,000 and for older character style renovations owners should budget around $1,200 per square metre.

Nikulinsky's advice, "be rational about it, have nice finishes but don't go overboard."

This is a view backed up by builder Gary Matson of Subiaco Homes. He says it's often cheaper to demolish a house and start again.

"For 30s, 40s and 50s houses there's not a lot to retain, so you're spending a lot of money to achieve fairly little," he said.

In older areas he says its worth keeping the character, but again emphasises the importance of doing a budget and looking at ways of how money can be saved to avoid blowing out the budget.

Here are 8 tips for first time renovators.

1. Have your house valued. Get an independent view on how much your asset is worth. This will provide a benchmark on how much to spend.

2. Gather information about your area. Talk to real estate agents about how much properties in your area or street have been selling for. Get a feel for the market.

3. Work out what you want? What style of renovation do you want? In period or ultra-contemporary? What will you use the renovations for? What type of look do you want? This will determine the finishes and impact on your budget.

4. Plan your budget before you start. Work out how much you want to spend, how you will finance your renovations and what you expect to get for your money. Do you want to spend $6,000 on a kitchen or $26,000?

5. Do your sums and compare the costs of renovating versus selling.

6. Take a long hard look at the positives and negatives of each option in a logical and rational way.

7. Avoid becoming emotionally attached to your property or a design. Often this can cloud your views, costing too much money for your budget or impacting on the overall effect of the renovation. Take a rational approach to the decision of selling and moving versus renovating, or demolishing versus renovating.

8. Seek professional help. Get a range of quotes from builders, architects and those in the industry.

Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom's blog at http://www.8mmedia.com.

Brownsville wedding limousine .. Lockport Chicago limo O’Hare

In The News:

You can reset your internet router remotely if you're not home when your power goes out. Kurt "CyberGuy" Knutsson explains how this can be done.

The EO Canopy is a self-sustaining, solar-powered camping platform designed to provide all the comforts of home while completely off the grid.

Experts say hackers who used to focus on Windows operating systems are increasingly targeting Apple IDs as part of a new phishing campaign.

Unitree, a Chinese robotics company that developed a backflipping robot, has now introduced a humanoid robot capable of doing a side flip.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

According to the FBI, cybercriminals are sending extortion letters, threatening to release victims' sensitive information unless a ransom is paid.

FireSat is a satellite project designed to detect and track wildfires early, aiming to detect a fire that's the size of a classroom within 20 minutes.

Tech expert Kurt “CyberGuy" Knutsson reports that researchers have uncovered a Chrome vulnerability used in a cyber espionage campaign.

Preserving voicemails securely on Android: Tech expert Kurt “CyberGuy" Knutsson reveals easy methods to keep memories alive forever.

This phishing kit bypasses 2FA via session hijacking and real-time credential theft. Kurt “CyberGuy" Knutsson offers four ways to stay safe from Astaroth phishing attacks.

Tech expert Kurt “CyberGuy" Knutsson discusses Joby Aviation and Virgin Atlantic planning to launch 200-mph U.K. air taxis linking airports and cities.

Fake Apple virus warnings, security alerts and messages are tactics used to prompt you to call a number or click on a malicious link. The CyberGuy explains how to protect your devices.

The combination of artificial intelligence and neuroscience allows a paralyzed man to manipulate a robotic arm by using his brain to imagine movements.

With the help of artificial intelligence, sophisticated fraud techniques emerging today are virtually undetectable to the untrained eye.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

If you need to free up space on your Mac, consider deleting duplicate photos in your image library. Apple makes it easy to do, and the CyberGuy explains the process.

Microsoft is discontinuing Skype in May after 22 years of service. Kurt the CyberGuy addresses other options for internet-based phone and video service.

Tron 1, a Chinese company's two-legged robot, is versatile and can walk, roll and pivot, even on rough terrain. Tron 1 stands 33 inches tall and weighs 44 pounds.

Hackers are tricking people into installing password-stealing malware by making them press keyboard shortcuts under the pretense of proving they're not bots.

Saving the voices of loved ones can be a comforting way to keep alive memories. Kurt "the CyberGuy" Knutsson explains how to preserve voicemail messages.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The FBI warns that some free online document converters load malware onto people's computers, making their private information vulnerable to attack.

Toyota's compact electric FT-Me is designed to tackle challenges of city living while offering an accessible and eco-friendly transportation solution.

Kurt “CyberGuy" Knutsson says 23andMe's bankruptcy raises data privacy fears: Opt out, download and delete data now.

UBTech and Zeekr unite with AI robot swarms to make car manufacturing faster and smarter. Tech expert Kurt “CyberGuy" Knutsson explains how the process works.

Avoiding A Nightmare On Renovation Street

Personal Finance