1. Adding Value Part 2 www.renos.com.au | info@renos.com.au | 1300 550 656

2. Wonderful ways to add value 7 deadly sins Adding Value

3. Wonderful ways to add value

4. Add a front fence Wonderful ways to add value

6. Add a shade structure Wonderful ways to add value

7. Open the verandah Wonderful ways to add value

8. Remove vegetation and tidy up yard Wonderful ways to add value

9. Make the property dog friendly Wonderful ways to add value

10. Paint kitchen cupboards Wonderful ways to add value Before After

11. Turn a window into a doorway Wonderful ways to add value

12. Replace handles Wonderful ways to add value Before After

13. Add a bedroom Wonderful ways to add value

14. 7 Deadly Sins

15. Don’t try to turn a ‘Lemon’ into ‘Lemonade’. Do the numbers Do NOT do “all” this reno work for nothing, you have to make money or you must walk away! Sin #1: Wrong Reno Property/Wrong Price

16. THE LESSON Renovator not a miracle maker. Get to know the “differences between cosmetic problems and terminal diseases”, where the instant equity is made. THE FIX Educate yourself. ‘Investor” renovation is very different to ‘home’ renovation. Learn the short cuts to quick capital gain. Model and mimic people who have “been there and done that”.

17. Sin #2: Wrong Area Burnt out cars and graffiti on garages are a good indication of a “Beware of a Capital Loss” minefield. It costs no more to more to renovate a property in a good area than it does in a slum. (Who is the end user?)

18. Sin #2: Wrong Area THE LESSON Do your research. Look out for future infrastructure changes that may effect your property. This may savage your capital value. THE FIX Research eg. demographics of the area. Find out what is planned for the area eg. a new University that no one knows about. Look at other people’s renovation results in the area

19. Sin #3: The Eternal Optimist Underestimating what needs to be done! “Oh it’s so cute!” But what about the cracks in the walls and floor? “Whaat …I didn’t see them!”

20. Sin #3: The Eternal Optimist THE LESSON Getting carried away with the agents’ enticements like … ‘Needs TLC’ (when maybe it really needs TNT!). First reno total ‘stuff up’ may result in one of 3 things…. – Lose money and walk away… never to do it again – Lose money and learn to do it better – Get lucky THE FIX Get some advice Program the work and see if it still makes sense… as an investor not as a homeowner.

21. Sin #4: Disorganised The painters are painting, while the tilers are tying to tile the floor and the floor polisher is trying to sand. The plumbers are on holidays... Where is that !@#$ electrician to run the cables and put on the power. It's absolute chaos. Help!

22. Sin #4: Disorganised THE LESSON Communication: Communicate, communicate, communicate …make sure your work program is understood by all parties. THE FIX Take an active interest in the project, but don’t get in the way. Keep your eye on the ball. Make sure if you say you will do something, do it! Note all conversations in your job diary. Issue any instructions in writing.

23. Sin #5: Overcapitalising Emotion, one of the most common renovating sins. This is the ‘mother’ of all reno mistakes… spending more money than the value you add. This is a cardinal sin of renovation. DO NOT spend $1 to make $1. Nooo!

24. Sin #5: Over-capitalising THE LESSON Spend a little to make a lot. Don’t cut too many corners - ‘paint and profit’ = ‘shonky/bog/flog’ Question: If I do this (cost $x) will it raise the rent? THE FIX Over-capitalisation is normally caused by 3 things: The Unknown, Emotions and No Budget Get a second opinion Do some courses on renovation Talk to other investor/renovators.

25. Sin #6: Taking Too Long Time is money.

26. Sin #6: Taking Too Long THE LESSON Do minimum work to get maximum result in the shortest time. Time is money in the forms. THE FIX Set a realistic construction program with dates, times, materials, responsibilities and stick to it. Make sure all parties have a copy and stick to it.

27. Sin #7: Running Out of Money You blew it…you can’t finish the work…you can’t sell your house, you have just committed “renovation hari-kari”. You are about to become one of the dreaded “D’s”…a Desperate seller. A half finished house, an empty bank account, no cash flow, and the only thing building is the interest you owe on your investment loan.

28. Sin #7: Running Out of Money THE LESSON Budgets and job program are important. It is easier to trim the work in progress to save money than to try to finish a project when you are broke! THE FIX Always keep a ‘buffer’ reserve to bail yourself out of trouble. Walk before you run. Get some basic reno skills. Time planning, job programming. Talk to people who have done what you want to do. Do an owner-builder course. Invest in ‘investor’ renovation books and videos (beware the ‘restoration’ or ‘house and garden’ style)

29. Summary Add value can be for more rent or higher sale price We have 115 Ways to Add Value 7 deadly sins..it’s all about research, setting goals, spending wisely and time is money