Successful investment property renovations revealedRenovations, Tips and Advice
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Investment Property Renovations Examples
In my last article, I listed the Top 5 tips on renovating investment properties. And at the end of that article, I promised to give some real-life examples to further explain the points that I made. So here they are, a couple of investment property case studies for you to consider:
1890’s East Brisbane Home
When purchasing this house as an investment property, our clients were well aware that it had potential and that renovating to reveal that potential could be a lucrative exercise.
The home itself is quite small, as homes in East Brisbane can often be, measuring only 140sqm. As is commonly the case it originally had just the one bathroom, however, given that this home competes with local apartments for tenants and that those apartments typically have two bathrooms, it was essential that another bathroom was added to attract that quality of tenant that my client was after.
Fortunately, this sturdy little house had four bedrooms, one of which was sacrificed to accommodate a back to back bathroom and ensuite. The dining space was then enclosed to form a new bedroom, making much better use of this space.
The original kitchen area had been quite spacious taking up more room that was required. Part of this space was used to create a new dining area. A secondhand kitchen was installed, which had the dual effect of modernising the tired original kitchen, whilst keeping costs down. A feature was made in this area of an old fireplace surround with a laundry adapted to work in this space.
The private backyard was perfectly positioned to capture cooling summer breezes and the gorgeous warmer morning light. To take advantage of this, a 4m x 4m deck was constructed with an elevated roof that offered protection from rain but felt spacious allowing light and wind to enter the home. The deck is accessed via a set of beautiful bi-fold doors.
The streetscape of this home was far from ideal and car accommodation was unsatisfactory, so a carport was added along with a new entry path leading to the front door. Extensive gardens then completed this renovation project.
So were these renovations worth it on an investment property where profits are all important?
Well, the original home was considered ugly and considered by many to be a bottomless pit into which the owner would never cease to throw money. However post-renovation the home is now achieving DOUBLE the rental returns that it had achieved only five years earlier.
The ugliest house in the street is now a boutique investment property offering excellent rental returns and capital growth.
1930’s Norman Park Home
The owners of this Norman Park home were initially confronted with a very run down cottage on a reasonably large battle axe block. Dark, damp and uninviting, the goal was to transform it into an upmarket, long-term investment property with further future potential.
The internal configuration was uninspiring, with three bedrooms and just a single bathroom, making it unappealing to the type of tenant the owners were hoping to attract. Given the competition from nearby apartments and other homes, it was desirable that the property is four bedrooms and two bathrooms with an upstairs laundry.
This goal was achieved, incredibly without addition to the main roofline of the home.
A new kitchen was fitted, becoming the centrepiece of a new open living area that also incorporated the dining and living areas. The kitchen itself has direct access to the existing deck.
It was important that the home has further potential and this was achieved by raising the house, allowing for the possibility of building in underneath in the future. As part of this renovation, changes were limited to a new internal stairway to the garage and additional downstairs storage.
Finally, the yard was extensively landscaped creating an upmarket inner-city private executive residence.
The original home was unappealing with little going for it. Now after re-evaluating the original floor plan and making better use of the existing unused verandah space, the home has had a dramatic transformation and achieves close to a four-figure weekly rental income.
Once a dark, dreary poky little home whose ground floor would flood with each heavy downpour, it is now a bright, cheery open planned home bathed in natural light and cooling sea breezes.
Looking to invest?
So there you have it, two great investment property renovation success stories. So when you’re looking to invest, come and see the architects that understand the market and how to make the most out of it.