Blog: Renovating risks and rewards.
Australians spent $6.35 B in renovations in 2012 according to the Australian Bureau of Statistics.
Some are calling it “the Block Effect”, created by a number of TV shows where property and renovating take centre stage. According to one of the large banks, this trend will only increase as homeowners look towards increasing the value of their properties, as well as making them more livable. However, before you organise the day trip to Bunnings, you need to be aware of some of the risks of doing it yourself.
1. Watch the budget: Statistics show that home renovations rarely come in on budget. Think about engaging a Quantity Surveyor to estimate the cost of construction, come up with a plan and stick to it. This could potentially save you thousands later on.
2. Over capitalising: Darryl Kerrigan in the movie “The Castle” joked about over capitalising with his DIY renovations, and we all remember how that turned out! Make sure that you don’t spend more on improvements than the profit you might make on sale.
3. Over Personalising: Make sure that your renovations are of a high quality. To achieve a higher price for your property to you need to appeal to more prospective buyers, too much personalisation can narrow the market.
4. Professional Advice: You have may a grand idea in mind, but actually bringing that to fruition may not be as easy as you think. Get the advice of a professional architect before you dive in.
5. Your own health: If you’re a fan of shows like The Block you will see what sort of physical toll these projects take on contestants, particularly if it involves physical labour. Also, be careful of exposure to things like asbestos in houses built before 1987. Lastly, it is often better to leave electrical and complicated technical jobs to the experts.