Make more money on your reno

Open-plan liv­ing and an ex­tra bed­room are the se­crets to Cherie’s smart profit-mak­ing project.

Homes+ (Australia) - - FRONT PAGE - Cherie Bar­ber is a ren­o­va­tor on TV’s The Liv­ing Room and runs ren­o­vat­ing-for­profit work­shops. Cheriebar­ber.com.au

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.

BUD­GET-FRIENDLY FLOORS

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.

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