When factoring in the real costs of renovating for profit there’s a lot to consider..
While some costs involved in renovating are obvious, there are others that are not.
Here is a list of all the costs you may incur during a renovation which will help you decide if that property you’re looking at is a viable option for making a profit or not!
- Cost of Buying the Property
- Building and Pest Reports
- Stamp Duty
- Loan fees
- Mortgage Interest Payments
- Insurance
- Consultancy Fees – architects, draftsman, designers, surveyors, environmental reporters etc
- Council Fees
- Renovation Costs – building and construction, product and material costs, landscaping and trade costs , etc
- Incidental Costs – storage, rent, extra electricity use
- Real Estate Selling Agents Fees
- Tax – depending if it is your principal place of residence or investment there maybe capital gains tax as well as income tax
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Make sure your costs are justifiable. Don’t oner spend!
If you are unsure then try our Renovation Rescue service. We can take a look at a property for you before you buy and give you an independent opinion on the cost to renovate and wether or not it is worth buying that home you are interested in.
So as you can see, it’s not as simple as just adding up the cost of the fix up.
By carefully considering the whole project’s expenditure, you will have a better idea of the true potential that a property has to make you a profit!