What percent return can you expect once you’ve made on renovations?
Buy-to-renovate investors should always do a feasibility study before spending any capital on an investment. The return that one can expect from an investment in renovations is dependent on many variables, such as:
- How necessary the renovations are: A R100 000 injection into an already established home will have a reduced effect when compared to a less established home.
- How much is invested: In most cases, renovators will see diminishing returns as they increase the value of their renovations.
- The neighbourhood: Each neighbourhood has a limit to the value of its properties; there is a maximum that buyers are willing to pay in order to live there, no matter how lavish the home’s finishes are.
- What you are renovating: A higher return will come from renovations focused on kitchens and bathrooms, or adding an extra garage or room. If you are adding a pool, there will likely be no return.
If we took a home in a high-demand suburb valued at R1 million, where other homes are selling for R1,5 million on average, and wisely invested, say, R100 000 in renovations, the investor could see a return of between two and three rand for every one rand spend. That’s between 200% and 300%.
What are some of the problems you may experience if you decide to do the renovations yourself?
DIY can be risky if you don’t know what you’re doing. Anyone considering taking this route should do their best to assess all possible risks.
Some issues that can arise are that you underestimate the task at hand and are unable to complete it, or that you cause damage to the property due to a lack of knowledge.
For example, you could drill into a water pipe can cause huge problems, such as flooding and damp and rot in the walls and floors. It may also happen that the work turns out differently to what you had imagined, which may mean that you make less profit than you expected.
Finally, your DIY fixes may prove inadequate, especially in the cases of plumbing and electrics. Living in a home where plumbing and electrics are not always functioning properly can be very stressful, demoralising and sometimes dangerous.
Related: Top Tips on How to Flip a House
10 Businesses You Can Start Part-Time
Find your perfect match for a successful part-time start-up.
Start your part-time business today
- Public Relations
- Freelance Photography
- Corporate Videos
- Small Business Advertising Agency
- Writing, Editing and Proofreading Services
- Internet Marketing Consultant
- Web Design
- Tax Accountant
- Business Consultant
- Business Plan Consultant
Launching a company – even if it’s operated part-time – is all about drawing on your skills, talents and interests to create a viable business. What you know and what you’re good at form a good basis for a part-time business because these companies either become an extension of what you enjoy doing most or they are based on your strengths.
Working part-time while still maintaining a permanent job is time consuming and often exhausting, so choosing what you take pleasure in or are good at can keep you focused and motivated. The right fit is important when it comes to launching a part-time business. Selling a service rather than a product does not require large start-up costs, which means you can grow your business without financing until it becomes self-sustaining.
Are you looking for a business that you can launch in next to no time?
Corporate Communications & Promotions
Corporate communications covers a host of areas, mainly because this is the sector that takes care of how companies look to the outside world – something that is very definitely a service, but also that is not often taken care of in-house.
If you can write, edit, have a knack for advertising, can take photographs or create promotional and corporate videos, you can offer your services part-time to companies both large and small that are in need of these services.
10 Business Ideas Ready To Launch!
Where do you find a good business idea? Right here. Here you’ll find several innovative business ideas that are ripe for plucking.
Where do you find a brilliant business idea?
It’s not as hard as it may seem at first. In fact, the idea is arguably not all that important. There’s a reason investors talk about backing the jockey and not the horse: It’s often not about the idea, but the execution.
A great entrepreneur can turn even a mediocre idea into a success; all that’s needed is a USP and great customer service.
That said, some ideas are undoubtedly better than others. And some businesses are easier to get off the ground. In the following pages you’ll find a curated list of business ideas that have reached a point where they’re just waiting to be exploited.
The 10 Best New-Age Business Ideas You Haven’t Heard About Yet
Creating the company of your dreams often begins with learning more about something completely new to you.
You don’t have to over-utilise iPads and smartphones to transform your business into a modern one. Connecting with newer generations is easy when you take advantage of the cool, in-demand ideas at your fingertips.
Here are 10 new-age business ideas to get you started.
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