Writing article - Would welcome input

[Ana]

Hi Guys,

I'm writing an article at the moment about what kind of worries and fears newbies have about getting into renovating for profit and I would really welcome your input.

Most of the time, its our worries and fears that stop us from giving something a go and I'd like to find out what the top 10 things are that people are nearvous about.

I really want to find out more about what are the kinds of things that worry investors about getting into this strategy, what are the issues they forsee, potential risks that keep them up at night, reasons why they wouldn't get into renovating for profit...

Or even if they would like to have a go at it, what are they most nervous about or feel they know least about...

All your thoughts and input would be greatly appreciated.

Kind Regards, Ana Stankovic

 

[Ana]

Hey guys,

Would love some input from you... One of the things I have heard a lot of people say that they worry about is renovation costing and budget blow outs. Would you agree with that? Any other ideas?

Cheers, Ana

 

[Jane - Hotspace]

Hi Ana,

Yes definately - one of the most common things I get asked by my clients is to help them figure out the cost of their renovation. Without experience, there is a huge tendency for people to over or under estimate the costs of things (therefore making their reno un-feasible or unrealistic from the outset).

Another fear is not know whether to in fact go ahead with a reno because they're not sure that they will make a profit at the end of the whole ordeal (which it often can be - much as we all love it!!). This does tie in with the costings issue but of course theres the extension of information required to work it out accurately.

Often people are sold 'the dream' of renovating - but again without experience and the right leadership it can turn into a nightmare. I think people want real certainty that they're spending their money on something that will make them better off (rather than just leaving it 'safely' in the bank or against their current properties). I know you're a guru at that Ana - so maybe you could write about the 6 steps of analysing your profit potential - before you start (or something along those lines).

I suggest these things as an experienced renovator - so it would be great to hear what someone who has never renovated before has to say.

 

[jsoe]

Hi Anna,
Trust you're well. I follow your blogs and case studies on your website. Please keep it up.

My boyfriend and I, our biggest fear is return on investment, as we have very little room to move in terms of cash at the moment. We feel like we've educated ourselves enough from seminars and books. But when it really comes down to doing it, your confidence is still wobbly.

What's stopping us? Money. Money to start investing, as well as headroom money for (unavoidable) errors along the way.

So, put it this way. For me personally, if I had enough money to play around with, I wouldn't be scared to give it a go tomorrow. So, we're still saving up and looking at other smaller ventures at the moment to get to that stage. Hope it helps.

Regards,
Junie

 

[buzzlightyear]

Jane, are you referring to renovating and then on-selling immediately after finishing?

 

[luckyone]

Hi Guys,

I'm writing an article at the moment about what kind of worries and fears newbies have about getting into renovating for profit and I would really welcome your input.

Most of the time, its our worries and fears that stop us from giving something a go and I'd like to find out what the top 10 things are that people are nearvous about.

I really want to find out more about what are the kinds of things that worry investors about getting into this strategy, what are the issues they forsee, potential risks that keep them up at night, reasons why they wouldn't get into renovating for profit...

Or even if they would like to have a go at it, what are they most nervous about or feel they know least about...

All your thoughts and input would be greatly appreciated.

Kind Regards, Ana Stankovic

For me I have many fears:-

• 
  As I don't have a building background, will the estimates on costing I make be realistic (I don't even have any builder friends so wouldn't know who to ask)

• 
  Will anyone buy the house once I finish the renovation? Will they like my design/colour choices?

• 
  What will I do if the market turns around in the time that I do the reno and I can't get my money back?

• 
  Will I actually be any good at renovating?

There's plenty more, but I can't think of them right now.

 

[Ana]

Thank you so much for all your input. This is exactly the kind of information that I needed to find out about. Can I try and see if I have understood what you mean correctly:

- it seems like a big concern is around detailed renovation costing, ie being able to work out fairly accurately how much a renovation is going to eat into your budget (and then also allowing a buffer for unseen stuff)
- targeting the renovation, so that it meets the needs and wants of the potential purchasers post renovation
- understanding the potential return (ie if I do this and this, and it costs me this much, but it is going to make that profit - then it's worth doing...). And a big part of this as luckyone mentioned being understanding the worst case scenario when doing that profitability analysis
- working with a small budget (ie starting small then working your way up)
- practical assistance and information about the reality of renovating (not just the fluffy stuff)

Please let me know if I have miss-understood any of your points. And of course I would welcome additional information and input too.

One question I meant to ask, is do people ever have concerns because they are really interested in doing renovating for profit, but their partner isn't for example, or anotherone that someone mentioned to me (who I met in a cafe the other day) is that they have trouble comparing two deals to know which one would be the better one to pursue..

What about working out what is going to add the most value?

Thanks again.. I will post a link up to the article once it's finished.

Kind Regards, Ana Stankovic