Top 4 Reasons Why You Shouldn’t Renovate a Property Before Settling in It
The Australian Institute of Architects says there are various reasons why you, as a property investor, should not renovate a property before moving in it. But four motives invariably come atop the list of reasons, and it is important you keep an eye on them to avoid running afoul of the law and facing cost overruns and pricey litigation. Don’t start a “reno” project before getting proper insurance, seeking relevant construction permits, planning the work efficiently and establishing a budget.
1. Get Appropriate Insurance
Signing the right property insurance policy is an important step in securing your investment and preventing any hazard from sinking your financial aspirations. And this is true whether the house is located in Sydney or elsewhere in Australia. To ascertain things like proper coverage and deductible limits, talk to your insurance agent. Don’t forget also to reach out to specialists such as architects, furniture removalists, interior designers and real estate attorneys—all of whom can give you different perspectives on the property insurance topic and help you make the right decision.
2. Seek Relevant Construction Permits
Depending on your reno project, you may need a special building or construction permit. For example, you should seek a building or planning permit whenever you spearhead a project involving structural or substantial external changes to a property. If you live in Sydney, seek the assistance of a construction lawyer or contact your local Archicentre branch—that is, the Australian Institute of Architects. Getting the relevant permits beforehand will save you many headaches down the road, especially when it comes to things like regulatory compliance and government-led litigation.
3. Plan the Renovation Job Properly
Now that you’ve finally bought that property you so relished, I understand you want to quickly turn it around and either sell or rent it—or even live in it. But don’t rush, and plan your home improvement project properly. Don’t just take my word for it; just heed expert advice coming from specialists as varied as removalists, interior designers and architects. For example, list all tasks, deadlines and contingencies—renovation lingo for the unexpected and how you plan to cope with it.
4. Set a Budget—and Stick with It
To put a property back on the market—whether it is via a sale or rental agreement—you may need to perform such work as painting and maintenance, depending on the abode’s condition. Things like doing skirting, ripping up carpets and sanding back floorboards cost money—and your goal is to minimise overall costs, lest you be in a deep financial hole and unable to reap a satisfactory return on your investment. Set a budget and comply with it; list all expenses and crosscheck them with specialists’ quotes before starting work.
Before performing renovation work on property you just bought, beware of a few risks that may derail your overall investment strategy. Things like construction permits and insurance coverage should be atop your “to do list.” Other salient elements include job plan, professional expertise and budgeting. You can also read the “A Guide to Competitive Quality Based Selection of Architects” PDF document.
By Corey K (follow me on Google )