Ask any investment advisor and they will tell you real estate is an important part of anyone’s investment portfolio. As someone once said, “Buy land, they aren’t making any more of it!” Over the long run just about every piece of real estate increases in value. But in addition to buying and holding real estate for future gains, the savvy investor knows there is money to be made in the short term with renovating dated or “tired” condos and selling them for a profit.
Renovating a condominium with quality finishing can net you a reasonable return once you sell it, as the very nature of condominium living revolves around convenience, lifestyle and attention to detail. These buyers want to enjoy life and relax in luxurious surroundings and are willing to pay for not having to do the work themselves!
The success of any renovation boils down to the quality of the finishing. With quality I mean the overall look and feel of the whole package. The overall effect needs to flow, co-ordinate, look and feel that each part compliments the whole. This does not have to mean that every item is the most expensive money can buy! But the finished package needs to have that “Wow” factor. One of the best ways to accomplish this is with the services of a skilled designer.
Many of my higher end clients ask for names of qualified designers long before they start a renovation project. If the package is done right, the client will see the financial results. From picking paint colours to choosing materials and recommending trades, the art of a skilful designer can greatly enhance what you thought possible for your investment.
When it comes to the actual work that needs to be done, if you are able to tackle some of the jobs yourself, go for it! Picking up supplies, minor painting, changing light fixtures and switch plates and even completing some of the demo work yourself can be ways of saving costs. If you have the skills to accomplish more complicated tasks, use them! If not, hire a professional the get the flawless effect. Always keep in mind who your target buyer will be.
Different price points of real estate require different levels of finishing. A $200,000 condominium can achieve the wow factor with laminate flooring, while a $500,000 condo may need solid wood floors to complete the package. You will have a cost difference of around 35%, but the end effect could add $20,000 to the final value of the condo and speed up the selling process. Lighting and plumbing fixtures are other areas where level of finishing is most evident to prospective buyers and needs to meet their expectations.
Renovating condos for profit can be a financially worthwhile venture. Remember to renovate with quality to increase the value of your condominium!