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The five warning signs you’re about to overcapitalise

By Lauren Ellis • Leave a Comment

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Imagine purchasing a property with the view of adding a second storey extension for the water views or extending out the back, only to later find out the local planning laws didn’t allow it. Or approaching selling agents for the property you’ve spent months renovating, only to hear the alarming news that the estimated selling price will barely cover costs, yet alone bring the tidy profit you were banking on. They’re expensive shocks that can be avoided with proper due diligence and research. Here are five mistakes you never want to make.

cherie-barber

1. Paying too much for the property

If you pay too much for a property to start with, you’ve thrown away the best chance you had to make a good profit. That $40,000 you overpaid will have to be clawed back somehow and it won’t be easy if you’re on a tight budget or the market plummets.

2. Ignoring a major buyer objection

A location on a busy main road, overhead power lines, right next door to an electricity substation or noisy school… they’re all “buyer objections.” And guess what? If you picked the property up for a bargain because other buyers didn’t want a bar of these turn-offs, you’ll be saddled with the same problem when you come to sell. No matter how gorgeous the renovation, the busy road will still be right out front.

3. Failing to detect a major defect

If you buy a house knowing it needs rewiring or a new roof, then you can factor in the repair costs. If you didn’t know about them, then it’s an unforeseen cost you’re going to have to wear and if the problem turns out to be major, that could run into tens of thousands of dollars. Before you can even begin the visible work that adds value, you’re going to have to spend a fortune on hidden but essential, remedial work. Always get the building report or pest and asbestos inspection done.

4. Incorrectly budgeting the renovation

In order to make money from renovating, you need to know upfront exactly how much you can spend on the renovation in order to make the profit you’re after and what the renovated property is likely to sell for, based on your market research. It’s a magic set of numbers that professional renovators and developers virtually carry in their head. A sure way to overcapitalise is to spend more on the property than it’s worth.

5. Choosing the wrong style of renovation for the area

A renovation you do in a suburb full of uni students is going to be quite different to the one you choose for a leafy family-orientated suburb. Different suburbs appeal to different demographics and you need to establish what demographic prevails in your suburb. This information is not hard to get. Doing a renovation that is completely out of step with the rest of the suburb will turn off buyers and may mean you’re spending money on things that don’t matter at the expense of ones that do. Do your research and make sure you tailor your renovation to your target market.

–Cherie Barber is the director of Renovating for Profit, a company that teaches everyday people how to buy and renovate properties for a profit.

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October 17, 2016

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When her styling business took a hit, @vaultinteri When her styling business took a hit, @vaultinteriors decided to reduce her outgoings by moving to a tiny house. And we're not sure we've ever seen a more stylish one!

Although the move to a container home was motivated by financial pressures, Justine Wilson is loving her new simpler way of life.

Read her refreshingly honest, positive interview on the blog now, via link in bio.

It'll make you want to downsize too!

#tinyhomes #tinyhouse #tinyhome #tinyhouses #tinyliving #livingbiginatinyhouse #tinyhousemovement #tinyhouseonwheels #tinyhouseliving #tinyhousenation #tinyhouseattractive #tinyhomedesign #containerhouse #containerhome #containerhomes #containerhouses #containerhomedesigns #interiorstylist #interiorsaddict #theinteriorsaddict #heartyourhome #jenbishop #smallspaceliving #smallspacedesign #downsizeliving #downsize #downsizingandminimizing #escapetothecountry #hawkesburyriver #hawkesburyriverlife
Appliance colour trends: They've certainly change Appliance colour trends:

They've certainly changed over the years. Remember when ALL fridges were white?! I remember the original BROWN wall oven in our 60s kitchen here pre-reno! I think the dishwasher was brown and beige (and it tripped the electrics every time we used it!) 😜

What do you think of this new dark stainless steel option (pictured) from Westinghouse as seen in @dnaofdesign_'s latest reno? Yay or nay? 

What colour do you like your appliances?

See the rest of this home and kitchen and laundry design tips from the ex Blockheads on the blog now via link in bio.

#kitchenappliances #walloven #wallovens #combioven #combioven #microwaves #builtinappliances #builtinoven #builtinovens #homeappliance #westinghouse #kitchentrends #ovens #laundryappliances #darkstainlesssteel #stainlesssteelappliances
SALE ALERT! Listen up Sydneysiders, one of my fav SALE ALERT!

Listen up Sydneysiders, one of my favourite home stores @shack.furniture.homewares are having their annual warehouse sale this week, from Thursday until Saturday.

HUGE savings on furniture, homewares and decor with 30 to 80% off. Wowsers!

I'm a big fan of SHACK and can never leave one of their stores without a few styling goodies for my place! It's just too tempting!

While you're at the sale, mention Interiors Addict for an extra 10% off!

Unit 16a, 1801 Botany Rd, Banksmeadow NSW 2019

Thursday 1st to Saturday 3rd June 2023, 9am to 4pm. Not online.

#sydneyshopping #sydneysale #sydneysales #sydneyfurniture #shackfurniture #shackfurniturehomewares #interiorsaddict #theinteriorsaddict #jenbishop #heartyourhome #comeshoppingwithme
A door to door continuous curved stone ledge in th A door to door continuous curved stone ledge in this bathroom is one of the cleverest designs we've seen in a while!

This mega ledge, made of Corian, even incorporates a sink, seamlessly.

Combined with venetian plaster on the walls, it's no wonder this Illawarra bathroom by @birdblackdesign feels like a day spa!

Come check it out via link bio.

Lead designer Stuart Gibson says: "One smooth curve, right around the room, from either side of the door opening. As it moves around, it creates a ledge for the bath: for bath oils, lotions, a book and a champagne glass. The ledge continues around and becomes the vanity, widening out to create a custom seamless basin."

#bathroomhappiness #bathroomdetails #bathroomshelves #bathroomshelf #venetianplastering #coriandesign #coriansolidsurface #spalikebathroom #spabathroom #sustainablebathroom
Catch the season finale of @sellinghousesaus last Catch the season finale of @sellinghousesaus last night?

We have all the before and afters for you on the blog now, via link in bio (and swipe for a taster).

#sellinghouses #sellinghousesaustralia #foxtel #lifestylechannel #beforeandafterkitchen #beforeandafterlivingroom #beforeandafterrenovation #realitytv #housetours #interiorsaddict #theinteriorsaddict #jenbishop #heartyourhome
😍 Not sure what's better: the custom mirror abo 😍 Not sure what's better: the custom mirror above the fireplace in this Art Deco one-bedder or the wallpaper in the kitchen (swipe)?!

It's been a while since we featured an apartment makeover on IA. Would you like to see more apartment interiors? Head to the blog now to see more of this one. Via link in bio.

#artdecoapartment #artdecointerior
#artdecomirror #artdecofireplace #artdecomelbourne #artdecofurniture #artdecobuilding #artdecointeriors #apartmentrenovation #apartmentinterior #smallspaceliving #melbourneapartments #melbourneairbnb #kitchenwallpaper #wallpaperaustralia
Low tox and planet friendly laundry liquid (and sh Low tox and planet friendly laundry liquid (and sheets and soap and powder!). We have a great roundup of the best options on the blog today. 

A whole host of brands are offering eco-friendly, low tox alternatives to the more chemical-laden ones. Not only that, they often smell amazing, look good on your shelf and come in recycled or recyclable (or even better, both) packaging. 

Good for your skin, your clothes and the planet: what’s not to like?

Do you use any of these?

COMPARE THEM ALL VIA LINK IN BIO NOW.

#lowtoxliving #lowtoxlife #lowtoxlifestyle #lowtoxhome #lowtoxlaundry #lowtoxswaps #naturallaundry #naturallaundrydetergent #naturallaundrysoap #ecolaundry #lowtoxcleaning #ecofriendlyhome #ecofriendlyhouse #laundryliquid #laundrypowder #laundrysoap #naturalcleaning #chemicalfreecleaning #interiorsaddict #theinteriorsaddict #jenbishop #heartyourhome
Play room goals!👌🏻 This is just one room fr Play room goals!👌🏻

This is just one room from today's real house tour which I really love because in employing interior designer @issyandhcreative the owners weren't looking for a complete rip out and re-do but rather to work with what they had in their new suburban home (including a dated kitchen) and give it a largely cosmetic glow up with styling and new furniture (some of which was upcycled). 

The brief was to create a family friendly home. "They weren't looking for perfection but rather a warm and relaxing retreat for their busy young family." This playroom though? Pretty close to perfect! And the mum did the colour coded books herself. Love that😁

Head over to the blog now via link in bio to see the rest of this home.

#playroomideas #playroomgoals #playroomdecor #familyhomes #kidfriendlyhome #kidfriendlyinteriors #familyhomedecor #sustainabledecor #affordablerenovations #interiorsaddict #theinteriorsaddict #jenbishop #heartyourhome #beanbagchair #beanbags #colourcodedbooks #colourcoded #toyroom #kidsroomdesign 

Pix by @tealily
All the heart eyes for this little setup 😍 Hea All the heart eyes for this little setup 😍

Head to the blog to shop this and two other gorgeous styled images from @greenhouseinteriors 

The stunning @mrsniceart artwork has already sold but the good news is, you can still get prints of it!

Styling by Aisha Chaudhry for Greenhouse Interiors, assisted by Nikki McGar, Kylie Harris, Rachael Blake and Max Green. Photography by Stephanie Rooney. 

#poolart #sideboardstyling #buffetstyling #consolestyling #vignettes #greenhouseinteriors #barcartstyling #shopthelook #bluehomedecor #poolumbrella #beachumbrella
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