When you purchase an investment property, you want to make sure its value increases as soon as possible, as much as possible. One of the best ways to increase the value of your property is to add to what you’ve started with. It can be tempting to save some money on property renovations by doing it yourself. In some cases, this will truly save you money and increase the value of your investment. Other times you can be setting yourself up for greater expenses and in return a drop in the value of your property.
When to DIY investment property renovations
1. You are qualified with a trade.
If you have a trade qualification in plumbing or carpentry for example, then you can save some money on DIY when you renovate your investment property. Just be sure to stick to your area of expertise, as not all trades and skills are transferrable, and a mistake can be expensive to rectify.
2. You get accurate quotes.
It will take some time and leg work, but make sure you shop around for the best prices on materials. Make sure you are comparing like-for-like in your quotes. If you go over budget, your affordable DIY renovation can become a property nightmare.
3. Don’t spend too much.
When you’re doing the work yourself, it’s easy to want to go for the best. However, remember this is your investment property, not your dream home. Don’t spend more than your budget or you risk overcapitalising.
4. Make cosmetic changes.
Even the most unskilled office worker can be equipped to make DIY cosmetic changes when renovating an investment property. This could include changing door handles or painting the walls.
When to leave investment property renovations to the professionals
1. The property is old.
An older house invites a myriad of problems when it comes to renovations. Tearing up seemingly simple flooring or unpeeling unpleasant wallpaper can reveal more problems than a DIY renovator can handle.
2. Structural changes.
If you’re making changes to the floorplan or moving water fixtures or light fittings, these are best left to the professionals.
3. You find asbestos.
Asbestos detection isn’t always covered in a property inspection so you may not know it’s there until after settlement and the renovations begin. If asbestos is identified in your investment property, it must be removed by a licensed professional.