Renovation VS Refurbishment Costsby Jeffrey L. Real Esate Specialists
Renovation Costs Vs. Refurbishment Costs
When you are managing a property portfolio, there are a lot of costs to consider and it is often tempting to put off expensive renovation projects. This, however, can often prove to be a false economy. Holding back on renovations often means you will end up spending more, over time.
If one of your properties is in need of regular refurbishment work, your monthly out-goings will increase considerably and your budget will get eaten up; not to mention the amount of time you will need to spend travelling to the property or organising repairs.
So, it is better to nip it in the bud early, getting the renovation out of the way and bringing those regular refurbishment bills down. But, of course, you need to plan your projects well and ultimately know exactly how to renovate a house on a budget. You certainly don't want to be paying more than you need to for the work or spending money on the wrong things.
Renovating or renovating a property is a great way to increase its value but it’s not always applicable in all places – eg in places like New Zealand where renovation costs nz is too high to justify renovating to increase the value – unless it’s an extension. and £40,000 will add 10% to the value of the house.
An extra bathroom, costing between £2,500 and £6,000 will add 6.1%. A new kitchen, costing £8,000 on average, will add 5.8%. A new conservatory will add 5%.
And there is more to a property renovation than just increasing market value (unless you are working with a buy to sell property strategy) or reducing refurbishment bills. A renovation can also increase your rental yields and attract a tenant profile more suited to your way of working.
Whichever way you look at it, often, renovation projects often make a lot of sense. But, you have to manage your budget correctly and the sums have to make sense. If not, you could eat into any benefits you get by overspending, or you could end up spending money where you won't see any return.
Created on Jul 7th 2019 22:22. Viewed 226 times.