You might have noticed that I don’t write about my properties everyday. That is because it’s a part time vocation. True, I think about it every day, do a little managing everyday, but the hands-on is fairly limited. I have heard of people renovating a whole house completely in 3 weeks. Cosmetic renovation that is.
Cosmetic renovation is not a word for doing a touch-up job on a rotting medium. The cosmetic renovation I do is about giving a place a new look, painting all walls and ceilings. Renewing all floors and fixtures. Updating bathrooms and kitchens and laundries. Landscaping and cleaning. An attention to detail job outside and in, including and especially the main features of a house. The raw material has to be carefully selected for hidden costs and structural faults.
If a house needs major work that costs thousands, it will not be considered for renovation unless it’s on a very valuable piece of land. In general I would not spend more than about 5 – 10% of the purchase price on a renovation. And if I did, it would mean that with all the work I put in, the profit would definitely be 10% or more of the purchase price.
Even though I’m still working with our handy men on days they are here, I ‘m aiming to not do so much physically myself in the next project. I enjoy some of it, for example painting (but not too much), wood work, tiling and just holding things up for the tradesmen, fetching tools and equipment etc. At this stage, I still enjoy being involved. So I’ll keep doing that. One day though, I will have a team of people going in for a few weeks and then it’s done.
And by the way, renovation without sub- dividing is almost a useless venture. Subdivision is where the money is, and renovation just adds a bit more. The good thing about renovating is that most people could imagine doing it, whereas sub division is a little daunting at first. A good way to start.
More on sub division next time.
investor of buildings and land 