Everyone wants to have an upgraded property with a high-end kitchen, a spacious bedroom, and large or luxurious bathrooms. But as an investor, you have to ask yourself before you do any renovations as renovations may increase the value of your home, but they can also be disastrous when they go wrong.
1 Is this property worth renovating?
If somebody buys a property that is just not a great constructed house, and maybe it is in a poor neighborhood, but they love it for whatever reason, and then they pour a lot of money into it and customize it to what they want. They probably will be stuck with something that is pretty unsaleable.
2 Who is this renovation for?
If you buy a property that's just for investment purposes:
Option 1 - if you decide to resell the property, then you may repair or fix the defect
Option 2 - if you decide to rent out the property, then you may refurbish some defects area or replace some equipment to let the property look fresh.
Option 3 - if you decide for your own stay and not for sale in the future, you may renovate or customize to your own preference.
3 Does it raise the value of your property?
Any renovation that you decide to make is an investment in the property.
Ask yourself what returns will this renovation bring and is it worth the initial cost?
4 How much are you willing to spend?
Everyone knows renovating a property may incur high costs. Make sure you have a clear planning of your budget of how much you are willing to spend on renovations.
Furthermore, do not forget about additional costs such as the cost for electrical wiring, plumbing, flooring, and other costs that can create a significant cent in your budget.
5 Do I have extra money set aside for unforeseen expenses?
Once you start renovations, you never know what's going to come up even if you plan your budget accordingly. Hence, you may set aside some backup funds for the eventuality of an unforeseen problem.
6 How long will it take to recover the cost?
When you spend the cost of RM 50,000 - RM 100, 000 for renovation on investment property, the cost will become higher, and the selling price of the property will become higher. Will someone buy the property when other property is selling cheaper? They may spend RM 30,000 only for renovation.
At last, they buy the property and make renovations at a cheaper cost.
7 Am I using reputable professionals?
Before starting your renovation, ask some architects, contractors, interior designers, and other professionals for referrals before hiring them, but your research shouldn't stop there. You may check their reputation via Google or any social media platform through reviews.
Renovating a property is a significant investment decision. Before do any renovation, it is important to get the right information and make the right decision.
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