One of the most frequently asked questions by real estate owners is whether to have their property renovated to increase its value prior to sale, or whether to have it renovated and maintained on an ongoing basis. Many owners are left scratching their heads not knowing what to do, often with the best of intentions. While both are essential in ensuring your real estate increases in value and retains a high rental yield, they serve two very different functions.
There is a distinct difference between refurbishment/ redevelopment and maintenance. Refurbishment/ redevelopment is concerned with keeping the property in existence, whereas renovation is concerned with improving the property, whether it be to better meet your needs or to increase value.
Understanding the use of the various features of Pro/ENGINEER Wild can help maximize your ROI.
When Property Maintenance Is the Right Choice
If your property is in good nick then ongoing maintenance is the way to go. This allows the Property Management Company in Melbourne to be familiar with the property and address minor problems as they arise before they become major problems.
Maintenance is ideal when:
- Your property is structurally sound
- You want to prevent long-term damage
- Minor repairs or updates are required
- You are managing a rental or commercial property
We offer a routine maintenance service including plumbing and electrical checks and general building repairs, aiming to prevent future damage and ensure your property is safe and legally compliant.
When Renovation Is the Better Option
Time to refurbish or renovate your property? Whether your property is outdated, non-functional or not performing to its full potential, a quality renovation can be a smart investment. Whether we work with you to create a brighter, more functional home or a property that’s ready to sell on the Melbourne market, we’d love you to take a look at our latest renovation work.
Renovation is the right choice when:
- Your interiors are outdated or worn
- You want to increase resale value
- The layout no longer suits your needs
- Need help cleaning your property before selling or prior to new tenants moving in?
Home renovations can significantly enhance your lifestyle and also increase your home’s value and potential return on investment whether it is a small renovation such as a kitchen or bathroom or a complete rebuild.
Cost Comparison: Maintenance vs Renovation
One of the biggest deciding factors is cost.
Property Maintenance Costs
At first glance, the cost to maintain your systems may seem like it is higher than just repairing the problem now. But think about it, this is a one time payment for continued peace of mind and protection of your home and your family for years to come. Keep your systems running at peak performance and get the most out of your investment.
Property Renovation Costs
Renovating a house often requires a large initial investment but the rewards can far outweigh the costs. Not only will the improvements to the property increase its value, but with a well planned renovation, it is possible for the property to pay itself back over time, either by increasing its resale value or through increased rental potential.
FOR Melbourne homeowners, one of the key factors that can help them get the greatest return on their investment is achieving a balance between ongoing maintenance and renovation, according to new research.
How Each Option Impacts Property Value
Whether you intend to live in the property for a while or sell it as quickly as possible, value will be a major concern at some point.
Maintenance preserves the value of furniture by ensuring that it continues to function properly.
Renovation increases value by modernising and improving functionality
Keep the property on the market whilst hopefully adding resale value, or just sell for a profit. Or hopefully add enough value to increase rental yield by renovation.
The Benefits of Combining Maintenance and Renovation
While some may benefit from selling and renting, others may get more out of buying and selling. However, for many Melburnians, there is the potential to benefit from both strategies.
A smart approach includes:
- Regular inspections and preventative maintenance
- Major renovations in key spaces such as kitchens and bathrooms.
- We have been continuously updating the property to keep it fresh, modern and most importantly practical.
By using your existing dwelling as the “sacrificial lamb” you can enter the market at a lower cost and still make capital gains as the land and new dwelling increases in value. Hopefully the new market will be different and trending upwards.
Common Mistakes Property Owners Make
It is also important to note that while some items may have some life remaining in them, it is wise to budget to replace them before they fail completely. Many homeowners will stretch the dollars to get the last bit of use out of items before ultimately paying to fix or replace them when they fail catastrophically.
Home maintenance Blues!
Many people overlook simple maintenance tasks and let them grow into large issues!
Common Mistakes:
- Over-investing in renovations without considering return on investment
- Hiring unqualified contractors
- Failing to plan long-term property goals
Sacrifice your hard earned time, money and stress through a series of avoidable mistakes.
Why Professional Services Make All the Difference
Regardless of whether you choose to maintain your property or renovate it, it is always best to get a professional involved. Not only do they have years of experience within the industry, but they will also be able to ensure that your finished result is exactly what you were looking for. So what services can you expect from your chosen maintenance professional?
What Professionals Bring to the Table:
- Assess your property condition accurately
- Recommend the most cost-effective solution
- Deliver high-quality workmanship
- Ensure compliance with Melbourne building standards
Having a list of trusted contacts can make the process a lot easier as they can organise the various trades to complete the work on time.
Why Melbourne Property Owners Choose Reprop
In addition to our Melbourne property maintenance services we are also able to provide property renovation services, so all your property needs can be dealt with by the one provider. Our fully serviced Melbourne property maintenance approach offers a consistent level of quality and ensures that all your maintenance requirements are handled efficiently.
Whether the job is large or small, our skilled craftsmen can ensure that your property is improved in terms of value and performance.
Property Management Considerations
In our Property Management series, we have looked at various types of property management. Selecting the right method of management can greatly impact the potential of a property to bring in a profit and be a long-term sustainable venture.
Maintenance vs Renovation
When deciding whether to carry out maintenance/repairs or renovations to your property, it will depend on a number of factors:
- The state of the property
- Your budget
- What you want to achieve with the property
If well maintained, the property should last well. However, if a property needs refurbishment, renovation, or modernisation, it is more cost-effective in the long run for the investor.
Final Thought
You already ride fairly well and just need to tweak the bits that don’t work well and keep riding the bits that do.