Make more money on your reno
Open-plan living and an extra bedroom are the secrets to Cherie’s smart profit-making project.
ONE OF THE GUARANTEED WAYS to add value to a property is to reconfigure the layout to add an extra bedroom and create open-plan living. These are the two key things on my radar when I size up a property and as I’m studying the floor plan, tapping walls and pacing it out.
When I came across this house in Sydney’s west, in an area that has already demonstrated great capital growth, I didn’t hesitate to snap it up. With a few tweaks to the layout and a better connection to the generous outdoor area at the rear, I knew I could tap into the full potential of the existing three-bedroom brick home. This was a wise investment.
The patchwork quilt of flooring left by the assortment of old rooms certainly couldn’t stay. Durable laminate floorboards in a honey colour called Chestnut now unify the whole house. They’re a fraction of the cost of hardwood floors, yet still provide the warmth of timber.
THE BOTTOM LINE
It was three weeks of intensive effort to transform this rough diamond into the inviting family home it is today.
But the ultimate sign of the successful renovation of an investment property is whether the numbers stack up. With a total interior/exterior renovation cost of $67,760, it came in at just a whisker above 12 per cent of the cost of the property – a fantastic outcome. But did it turn a profit? The triumphant answer is yes, it certainly did. I purchased the house for $550,000 and it was revalued post-renovation at $690,000. This is a gross profit of $72,240. That’s the kind of outcome an investor seeks.