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<\/p>\nJo Powell isn\u2019t one to shy away from a property challenge. She made her first investment in real estate when she was just 20 years old, purchasing a small residential home as an investment, which she eventually renovated and sold for a tidy profit.\u00a0 Fast-forward to today and she\u2019s worked with dozens of clients on projects of varying complexity, with one main goal: to help people maximise their sale prices when selling their homes or investment properties.
\nJo now runs her business with the aim of assisting property owners by drawing on her knowledge gained from her accounting, property development and renovation background to help them realise their property goals.
\n\u201cI have been an investor in the residential and commercial property markets for 25 years and I know how important first impressions are,\u201d Powell says.
\nIt\u2019s safe to say that when Powell was approached by this particular client, their property lacked a strong first impression.
\nLocated on the outskirts of Ballarat on the \u2018Melbourne side\u2019 of town, this mud-brick single-storey property situated on approximately five acres was constructed in the late 1980s.
\n\u201cIt had been built by its current owners, and it had not been updated in any way since its construction,\u201d she explains.
\n\u201cThe owners were looking to sell the property and downsize and came to me for advice regarding what improvements they could make to improve the saleability of the home and maximise the potential sales price.\u201d<\/p>\n
\n <\/p>\n
Ascertaining the pre-reno value<\/strong> Jo Powell isn\u2019t one to shy away from a property challenge. She made her first investment in real estate when she was just 20 years old, purchasing a small residential home as an investment, which she eventually renovated and sold for a tidy profit.\u00a0 Fast-forward…<\/p>\n","protected":false},"author":176692471,"featured_media":11043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,31],"tags":[70],"class_list":["post-13865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-your-investment-property","tag-featured"],"yoast_head":"\n
\nPrior to undertaking any work on the home, several real estate agents were asked to provide indicative values for \u00a0the property.
\nThe general consensus among them was that the property would achieve a sale price in the vicinity of $550,000 in its pre-renovated state.
\nHowever, the property\u2019s lacklustre condition meant it might have struggled to find a buyer for some time, as the average time to sell a property in the city of Ballarat then stood at around 73 days.
\n\u201cThe owner of the property advised that the budget for all works was to be capped at a maximum of $20,000. The budget for prioritised works was $16,763, and this was the amount they ultimately spent on the renovation,\u201d Powell says.
\n\u201cFollowing the update, the property sold in 13 days \u2013 and for $90,000 above the expected, pre-renovated sales value.\u201d
\nSo what was the secret sauce that allowed such a magic transformation to take place?
\nHow did a $16,765 reno delivered over $70,000 profit?<\/strong>
\nWith a project like this, it\u2019s essential that you focus on the areas that deliver the maximum bang for your buck.
\nFor this house, the main areas addressed were:
\nColour palette. <\/strong>Throughout the home, a lighter wall colour was utilised and the heavy exposed mud-brick walls were painted or plastered over.
\nFixtures and fittings. <\/strong>These can really date a home, and it\u2019s relatively inexpensive to change light fittings, door handles and cupboard knobs.
\nFlooring: <\/strong>By updating the flooring in the bathroom, laundry and toilet area, it refreshed the space from the bottom up. The living areas were also recarpeted.
\nKitchen: <\/strong>The budget didn\u2019t allow for a full kitchen upgrade, but fortunately this home didn\u2019t actually need it. With repainted cupboards, new benchtops and an updated flick mixer, the kitchen was thoroughly modernised for a fraction of the price of a full makeover.
\nConversion:<\/strong> This was a big-ticket upgrade. The former unfinished garage space, which adjoined the dining room, was transformed into a media room, adding significant value by creating a new living space for the home.
\nMinor updates:<\/strong> In addition, a few further upgrades were done, such as a new shower screen in the bathroom, and updated window furnishings.
\n\u201cAside from these aspects, we were able to work with our client to devise a plan to prepare for the sale, which they could then implement themselves,\u201d Powell adds.
\n\u201cThis, combined with what ultimately turned out to be a very short sales campaign, meant that the stress that might have been associated with the sale of this property was minimised \u2013 something that was highly valued by our client.\u201d
\nIf you\u2019re looking for a quick turnaround and minimum fuss, Powell says planning and preparation are your key allies in your quest for renovation success.
\n5 STEPS TO KEEPING A PROJECT ON TRACK<\/strong>
\nHave a clear brief\u00a0<\/strong>
\nThe brief provided to me by my client was to devise a plan that updated the appearance of the property, with a view to presenting it for sale and thereby maximising its sale value.
\nKnow your strategy: DIY or professional?<\/strong>
\nWith this objective in mind, I assessed the property and developed a plan that included recommended colours and finishes for the specific areas being addressed. My client implemented the plan themselves.
\nAccept that planning is crucial<\/strong>
\nI can\u2019t stress enough the importance of planning. You need to fully plan in advance of commencement. This allows you to anticipate problems and address them before they are a reality. Always ask yourself: how can I achieve \u2018the look\u2019 or \u2018the feel\u2019 at a reduced cost?
\nBeware of budget constraints<\/strong>
\nPrepare a detailed budget and do not deviate \u2013 at all, even a little \u2013 unless absolutely necessary.
\nAllow for contingencies<\/strong>
\nThey are inevitable. If you haven\u2019t planned for them, they will become necessary, and if they are not in your budget to begin with, you will have issues.
\nFor more articles like this, visit www.yourinvestmentpropertymag.com.au<\/a>
\nOriginally published as: http:\/\/www.yourinvestmentpropertymag.com.au\/property-renovation\/budget-17k-reno-delivers-the-dollars-450-roi-237060.aspx<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"