Smart Extensions: How to Maximise Your Home Extension
Announcement posted by Next Level Extensions 08 Aug 2014
Provider of home extensions in Perth reveals how many property investors are maximising their properties’ revenue.
Perth, WA, 8 August 2014 - It is no secret to property investors, large or small, that the real estate market in Perth has risen to record levels. In nearly every suburb of Perth, the current median price is at an all-time high. Low interest rates and increased consumer confidence have combined to produce a busy and prosperous property market.
While many investors are using the standard method of “buying low and selling high,” many investors have chosen what may be seen as the Australian pastime by wry observers: home renovation.
The business model is familiar: buy a home, add value by renovating it and sell it for a profit. When this is usually done by DIY mavens or middle size investors with their own construction crews, individual investors with neither the time nor the knowledge to renovate homes on their own are choosing companies such as Next Level Extensions in Perth.
The business model is the same, except that the investor also pays to have the renovations done. This decreases the profit margin for the investor, but allows people who previously couldn’t dream of being in the renovation business to turn a profit if they execute the model correctly.
The Factors for Turning a Profit
The factors for turning a profit can be boiled down to a simple formula. The investor needs to find a builder who will provide them with a solution that increases the value of the home being renovated by more than the investor spends to have the work done. However, every part of the equation has to be right or the investor loses money.
High Quality Work at a Reasonable Price
For an investor to turn a profit, the quality to price ratio on the renovation must be high. The builder must be able to provide a high quality solution that adds value to the investment property while charging a price that is low enough to allow the investor to make a profit.
The Investor’s Homework
Investors can tip the scales in their favour greatly by doing their homework. This involves finding a home that is slightly underpriced for its market. Then, they need to get an accurate projection of what the home will fetch on the market after renovation. The last part that has to go right is that they have to get an accurate assessment of all renovation costs upfront.
If the investor has done all of these, it is simply a matter of finding a situation that is mathematically profitable and then executing the renovation and the sale.
Putting it All Together
Craig Johns, Director of Next Level Extensions, is a veteran of many home renovations in the Perth area. According to Mr Johns, “You have to choose the right property in the right market and hire the right builder. If you don’t do this, you’re throwing your money away.”
Next Level Extensions is a trusted provider of ground floor home extensions, second storey additions and home renovations in Perth. They are known for their quality, integrity and prompt completion times. For more information or for an estimate, call 1300 948 094 or visit their website: http://www.nextlevelextensions.com.au/.
While many investors are using the standard method of “buying low and selling high,” many investors have chosen what may be seen as the Australian pastime by wry observers: home renovation.
The business model is familiar: buy a home, add value by renovating it and sell it for a profit. When this is usually done by DIY mavens or middle size investors with their own construction crews, individual investors with neither the time nor the knowledge to renovate homes on their own are choosing companies such as Next Level Extensions in Perth.
The business model is the same, except that the investor also pays to have the renovations done. This decreases the profit margin for the investor, but allows people who previously couldn’t dream of being in the renovation business to turn a profit if they execute the model correctly.
The Factors for Turning a Profit
The factors for turning a profit can be boiled down to a simple formula. The investor needs to find a builder who will provide them with a solution that increases the value of the home being renovated by more than the investor spends to have the work done. However, every part of the equation has to be right or the investor loses money.
High Quality Work at a Reasonable Price
For an investor to turn a profit, the quality to price ratio on the renovation must be high. The builder must be able to provide a high quality solution that adds value to the investment property while charging a price that is low enough to allow the investor to make a profit.
The Investor’s Homework
Investors can tip the scales in their favour greatly by doing their homework. This involves finding a home that is slightly underpriced for its market. Then, they need to get an accurate projection of what the home will fetch on the market after renovation. The last part that has to go right is that they have to get an accurate assessment of all renovation costs upfront.
If the investor has done all of these, it is simply a matter of finding a situation that is mathematically profitable and then executing the renovation and the sale.
Putting it All Together
Craig Johns, Director of Next Level Extensions, is a veteran of many home renovations in the Perth area. According to Mr Johns, “You have to choose the right property in the right market and hire the right builder. If you don’t do this, you’re throwing your money away.”
Next Level Extensions is a trusted provider of ground floor home extensions, second storey additions and home renovations in Perth. They are known for their quality, integrity and prompt completion times. For more information or for an estimate, call 1300 948 094 or visit their website: http://www.nextlevelextensions.com.au/.