Maximizing Property Value, Minimizing Cost
Your property is going to gradually decline in terms of value over time. There’s just no way around this. Natural entropy reduces the value of a property. And while you can’t avoid this, you can outmaneuver it through proper upkeep of the premises and renovation. If you’re savvy in renovation, the most costly upgrades will actually make you money, not lose money.
Here’s the thing: in order to make money from renovation, you’ve got to understand you’re making a long-term investment; one that may not fully mature until you sell the property and turn the assets into something else. So be sure you can absorb a loss in the short-run so you can get the most for the least. With that in mind, consider the following tactics to cut costs.
Incorporating DIY Projects Into Renovation Plans
At only $20 an hour, a ten-hour day is $200. If you’ve got a job that stretches into two five-day weeks, that’s $2,000. Meanwhile, if you spend a month doing it yourself, it takes longer, but you save $2k. Also, you’re probably more handy than you realize. For example, you might consider something like a DIY deck.
There are plenty of solid blueprints online; all you’ve got to do is measure the area you’ve got, look up blueprints that can fit that area, then buy the lumber, buy the nails, buy the lacker, rent the tools, measure twice, cut once, and put it all together. Even if your first or second attempts don’t work, you may still save money over contractors by just doing certain jobs yourself.
Making Money From Renovation: The Green Route
One renovation that is fairly straightforward involves the installation of solar panels. Essentially, you mount the panel using screws and brackets, ensure the positive and negative electricity cables are properly connected, run them into a surge controller, run that into a battery, and run a power inverter from the battery.
A 3.1 kWh solar energy array (31 panels, at 100 Watts per panel) will increase the value of your property between $10k and $20k, depending on the state you’re in. Additionally, you cut out costs associated with utilities, and you may even get a tax break. The cost of the materials will be around $5k if you itemize and install yourself. It’ll be a job that takes a full weekend or a few weeks, depending on your skill.
Strategic Renovation Design
Go with traditional options that are known to look good, enhance a room, and be affordable. You can use a budget as a means of helping you determine the proper style of a room. For example, these white shaker cabinets are cost-effective and elegant, with a classic feel to them that can match many motifs, or be their own unique straightforward decorative option.
Plan Carefully In Advance, Give Yourself A Large Error Margin
Before doing anything, do your homework. What sort of resources can you afford to lose before renovation value kicks in? What sort of time will it take for you to get a renovation job done? What will you do if things unexpectedly sour? You need a margin of error and advance planning.
Finishing that basement is a great idea, but if you’re going the DIY route, it may take a few months. Even a crew of contractors may encounter issues that require time. Plan in advance, and incorporate error margins higher than expectations just-in-case. Construction projects always take longer than you expect.
Consult With Professionals Once Plans Are Made
Before you do anything, consult with professionals. If you’ve got friends who’re contractors, take one or two out for a beer and quiz them down. If you don’t, look into online forums and ask people who seem to know what they’re talking about the right questions. Get a few different answers from different contractors, like seeking a second opinion on car repairs.
It is said that many plans ultimately fail simply because they didn’t start from the proper counsel. You can sidestep this by asking the right people the right questions at the right time: before you start renovations.
Getting The Most Value Without Breaking The Ban
You can save time and money through DIY projects, but you could also get in over your head. Ask the right people the right questions, plan in advance, consider projects that are virtually guaranteed to bring a return (like solar arrays), and be strategic in the renovations you choose. Such tips should help you see more benefits for less cost in terms of renovation.