What is Renovating?

A renovation is the process of repairing, refreshing and reviving a property and adding more in perceived value than actual value to result in a profit making venture. Essentially you need to spend some money to improve the property and in doing so add more value than the actual amount you spend.

It is quite easy to give a house a modern and neutral colour scheme, which changes the whole look of a place without having to spend a great deal of time and money.

 

A restoration on the other hand, involves bringing a property back to its original condition. This usually involves using parts and materials that are no longer available, requiring expensive investigation and reproduction. Imagine restoring a 1932 motor vehicle, when most of its parts required are impossible to find and probably need to be remade. Car restorers do what they do for the love of reproducing something unique and it is likely to be a passionate interest. In most cases the cost to restore the car would far outweigh its value; it is done for the enthusiast to keep for their own personal benefit and is not a profit making venture.

Consider a nice old Victorian house which may cost tens of thousands of dollars to restore because certain period features have to be crafted especially. That is restoration not renovation! Whilst in some cases it can be profitable, this is rarely the case. Don’t do it for the love if your goal is really to do it for the money.

An external renovation can be as simple as a coat of paint, a new front door, cutting down some overgrown trees, doing the garden and maybe putting up a fence. These simple tasks can change the presentation of a home and give a 'wow' factor as a first impression for potential purchasers. That is how to add perceived value and profit from a renovation!

Internally, the kitchen and bathroom are the main areas that should be modernised to add value to the interior of a home. It is important to know the target market you are going to be selling to, to decide how to give the home a fresh look. This can be as easy as a coat of paint, polishing the floorboards and changing the window fittings from outdated curtains to timber venetian blinds to let in more natural light.