Eight essential tips to help you renovate for profit

With property values trending positively once again, many prospective buyers are looking for fixer-uppers they can renovate and flip to capitalise on our buoyant market.
 

With the likelihood of interest rate reductions later this year and into 2025, it's a great time to plan a new property adventure. 
 

Of course, renovating and flipping a property is not for the faint-hearted. A successful project requires good market knowledge, construction nouse and a little courage. 
 

As experienced local agents, we meet new buyers every week who are ready to renovate and consider whether to hold the property or sell quickly to move up the property ladder.
 

Below are eight tips to complete a successful renovation. 

• Who's your buyer? Research your target market to understand what your ideal buyer wants from a new property. Are you going for the singles market (one-bed unit or loft), couples or family?
   

• Choosing the right property: In profiling your buyer, you must be able to identify the appropriate locations. If you're considering renovating a family home, consider established properties in middle-ring suburbs or regional centres.
   

• Due diligence: Seek professional advice to establish your target property is structurally sound. The greatest profit comes from improving the cosmetics of the building, not sinking your cash into new foundations.
   

• Easy living: Most buyers want open-plan living. Consider carefully the floor plan and the cost of changing it with each property you consider. 
   

• Be modern – Today's buyers find outdated bathrooms and kitchens a turn-off. If you buy an older home with 1970s decor, you'll need to splash some cash on these areas.
   

• First impression: Never underestimate the value of curb appeal. Make sure your property looks attractive from the street. 
   

• Budgeting: Decide on the scope of the renovation (cosmetic, value-add or remodel) and allocate funds accordingly.
   

• Reserve fund: Put aside 15% of your budget for unexpected issues. It's a safety precaution but one worth taking. If the money isn't needed, happy days!