How to Make Real Profits From Easy Home Renovation

We all accept that life can be hard and very oftenPlanning Officer: Planning requirements say that
isn't fair but doesn't it seem as though some peopleself-contained flats must be part of the main dwelling.
make it their life's work to give you a hard timeEx-copper: How about I construct a wall across the
unnecessarily?space between the two buildings and join them
Yep we've been there. Every entrepreneur willtogether. Would that do?
experience bright ideas or new inventions hitting aThis was greeted with a look of utter dismay. 'No!
brick wall of one form or another. Despite all theGranny flats must be under the main roof of the
determination, ingenuity and effort mustered, mostprinciple dwelling.'
have to admit defeat after a bitter and exhaustingEx-copper: What about I don't call it a granny flat? If
struggle. Sometimes there will even be heartbreak,I call it a "facility room" whose purpose is to provide
but the thing is to never give upoutside showering, toilet and kitchen facilities for
Sometimes, after working seven days a week,entertainment purposes when the pool is in use,
investing all one's savings while living, eating andwould that be acceptable?
breathing a new business venture, you can reach theAt this suggestion, the young man brightened, his
pinnacle of success, only to have your dream snuffedface losing it's worry lines immediately. 'That would be
out.acceptable, but you mustn't call it a granny flat and it
You are not alone. Everybody in business seems tocannot be used for residential purposes.'
have a war story to tell. It happens far too often. ItIn your dreams buddy! The would-be renovator
may have even happened to you. However, makingwanted to retort but instead replied, 'No, no. Of
substantial profits legally and quickly from homecourse not.'
renovation is almost certain if you follow the correctHaving completed partitioning to form a kitchenette,
guide lines. In fact, if you can afford to buy a housebathroom and bed-sitting room, the couple lined the
or unit, there are very real financial gains to be madeinterior of the single brick walls and fitted
from home renovation.plasterboard on the underside of the roof trusses to
Even if you have to borrow heavily to purchase thecreate a ceiling. The roller door was removed from
property which will become your first project, youthe front of the garage and they installed an
can make money. In fact, if you are in debt, that isaluminium floor-to-ceiling window in its place. Using
all the more reason why you should do somethingnew-found skills to tile the bathroom and toilet,
more than plug away for 25, 30, 40 or even 50together they painted and furnished the "facility
years, eventually paying substantially more than theroom."
actual purchase price in volatile interest rates, bankThe council building inspector duly arrived and passed
fees, administration fees and any excuse yourthe improvements without comment. When it came
mortgagor can concoct to rip the most money fromtime to eventually sell the house, the were able to
you.say quite truthfully that the converted garage had
The sooner you can eliminate that mortgage, thecouncil approval. What the new owners did with
better. Perhaps you will have to go through theself-contained, freestanding brick room was entirely
renovation process several times before you aretheir own concern and no longer of interest to the
debt free. However, when the day comes that youlocal council.
lift the mortgage millstone from your shoulders, youWith all the improvements made to the house, the
will enjoy a sense of freedom like no other. There iscouple were able to sell it for a great deal more than
nothing like the realisation that you are on the waythey'd paid for it despite only living there for
to very real wealth.approximately two years.
It doesn't matter who you are, what yourSince that time, they've repeated the process
qualifications are, whether English is your secondseveral times, each time climbing higher on the ladder
language, whether you know anything about realto wealth and financial security.
estate or not, what city or town you live in, whatOf course, not everyone has the skills to tackle
your religion is or whether in fact you have one. Ittasks which fall under the auspices of the various
doesn't matter either whether you're black, white,trades people and would much prefer to outsource
yellow or varying shades of those colours, as long asrenovation work.
you are willing to read, comprehend, absorb andNevertheless, even the reader chooses this latter
apply the information in these pages, you are almostpath, they still stand to make substantial profits from
certain to make money. How can we be so certain?home improvement. However, profits will be directly
Here is a true life story.proportional to the amount one does one's self.
A young policeman in New Zealand knew promotionThe main thing to keep in mind here is, you can learn
nearly always meant a transfer to anywhere withinon the job and there are hoards of Tertiary and
the country. Luckily when his turn came, he jaggedFurther Education (TAFE) courses, handyman
the idyllic holiday town of Nelson where propertyworkshops and DIY books to which you can turn for
values were destined to rise dramatically.advice on any topic.
Situated in Tasman Bay at the northern end of theMany may have already picked up skills through
South Island, Nelson lies directly above majorfinancial necessity when first married. Little money
earthquake fault lines. As a consequence, most ofoften brings with it the necessity to acquire what
the town's buildings are timber construction as thisone needs through the cheapest means possible. For
withstands the rocking and rolling motion of frequentmany, it often means having to learn how to make
earth tremors much better than permanent materials.something rather than purchase it. This is not
Because the town has a beautiful climate, marvellousnecessarily a bad thing. Learning how to lay concrete
scenery, a relaxed, carefree lifestyle and is in closepaths, construct fences, paint, and landscape, and
proximity to so many wonderful natural attractions, itconstruct sheds and pergolas and countless other
is in great demand, both from retirees and thosethings along the way is tremendously rewarding.
seeking to own a piece of paradise.By adopting a "can do" attitude and refusing to use
In the late 1970's all this meant high house prices andthe excuse of not being a handy person so many
a shortage of stock on the real estate market.people use today, you can achieve minor miracles
Although he received an excellent price for hisand have a lot of fun in the process. Remember, if
previous home, the policeman found himself in theyou have the will and a modicum of commonsense,
predicament of being unable to afford anything heyou CAN do it.
and his wife liked, unless they saddled themselvesSo, where do you start?
with a second mortgage. His answer? Start a secondYou start by choosing the suburbs that will give the
career as a part-time home renovator.best return on your investment
After choosing the suburb where they wanted toWhat makes some areas attractive while others
live, they looked around for house with renovationstagnate? Major detractors for thinking buyers would
potential. The only home within their price range wasbe;
little more than a holiday shack. Squeezing four1. Poor public transport services.
children into its cramped rooms proved a challenge.As fuel prices escalate more people will turn away
Almost immediately after taking possession, thefrom using the family car, particularly if they need to
young copper removed several walls to create morecommute to work. And although many will continue
space and incorporated what was an entry porchto choose private transport whatever the cost, it is
into the lounge area. After calling for quotes fromcomforting to know public transport is a viable option
three builders, he and his wife had another roomshould they choose or be forced to use it.
added. In between working shifts the policeman did2. High crime rates, graffiti vandalism and "hoon"
all the painting, wall papering and renovation work inbehaviour.
addition to installing a swimming pool around which heWe all like to feel safe from the worst aspects of
constructed a spacious wooden deck.human behaviour and nothing degrades property
Four years later, when the policeman's family sold thevalues more quickly than a perception (real or
house to make a move across the Tasman, theyimagined) of becoming a target of the ratbag
received twice what we'd paid for it!elements in society.
Unfortunately, a few years later, having walked3. Proximity to government housing.
away from a failed marriage with nothing more thanUnfortunately, although many responsible and
a 12 year-old car and the clothes on his back, thehardworking people find the need to make use of
same man was fortunate enough to meet a beautifulgovernment housing, statistically speaking there is
lady who was at that time also in the throes of anmore crime in and emanating from public and rental
acrimonious divorce. When that was settled, sheproperties than from privately owned homes. In
received half the sale price of an average suburbanlatter years some state governments have turned
home and some very tired furniture. For his part, theaway from large enclaves of public homes to a policy
former New Zealand policeman had willinglyof interspersing government rental accommodation
bequeathed his share of the former home to his examong privately owned dwellings. It does not take
on the proviso she let him get on with his life.much detective work to ascertain if such houses are
Although neither his new wife nor he had any savingssituated in close proximity to your proposed
to speak of, they were both prepared to work andrenovation project, and while the current tenants
start over.might be decent, responsible people, the situation can
Their first renovation project together entailed takingchange overnight.
out what was in those days a hefty mortgage over4. Excessive distance from recreational facilities,
25 years. They had no thoughts of selling the houseemployment, medical services, schools and
and their sole intention was to make a homeeducational institutions.
together and plug away at paying off the mortgage5. A lack of parks or public open spaces.
as quickly as their combined incomes would allow.6. In the flight path of a busy airport.
Although they knew little about real estate, they7. Narrow streets lacking in landscaping along with
were lucky in that they purchased a property withsmall or non-existent backyards.
potential and one that was situated close toAlthough many families today do not want the
transport and amenities. Like most people, they couldresponsibility for maintaining large gardens, who
not afford the type of home they desired, so theywants to feel as if they are hemmed in? High density
set about making the improvements themselves andliving is acceptable only where it does not come at
raising it to their desired standard. Because they hadthe expense of one's personal space and privacy
a teenage daughter living at home, they thought aotherwise we foment social problems and risk losing
second bathroom would add value to the home anda sense of well-being and endangering our mental
make their life easier. Also, the man's new wife hadhealth.
been used to the luxury of a swimming pool. Because8. A high incidence of "battlers" in the neighbourhood
having a pool meant a better chance of keeping aThis will reflect on the will and the financial ability of
troublesome teenager at home where they couldproperty owners to enhance their immediate
keep an eye on her and her friends they decided toenvironment leading to "nappy alley" type suburbs.
install a pool despite the additional financial burden.9. An excessive number of people from one
It proved to be a sound decision. The swimming poolparticular demographic.
added significantly to the value of the property whenThe happiest and most desirable neighbourhoods are
they decided to sell the house a year or so later.invariably those with a good cross section of folk of
As a practicing watchmaker, the original owner of theall ages. This way, there are elderly or retired people
house had included a workroom adjacent to theat home to "keep and eye on things" while others
master bedroom. With no need for this facility theare working. Similarly, the elderly do not feel isolated
couple quickly realised how easily they could convertor marginalised as is often the case in some older
this room to an en-suite. Although neither partner hadsuburbs where everyone appears to be in "God's
ever previously done tiling, with the confidence ofWaiting Room."
people who had tackled far more difficult tasks, theyAside from the opposite to many of the above
decided to learn on the job.detractors, some of the qualities making areas
With copious cursing for a while, they soon got intoattractive for potential buyers will be:
the swing of it however. Naturally, rules and- Suburbs along the coastal strip of coastal towns
regulations dictated that they commission a plumberand cities.
and drain layer to make the necessary plumbing and- Suburbs or streets within suburbs that afford
sewer connections but they even managed to saveattractive views.
substantially by digging the trench for the waste- Localities where there has been careful
pipes, a back-breaking task!.consideration to landscaping and street design.
They made further savings by scrounging around- "Exclusive" estates with regular security patrols.
salvage yards for a washbasin, toilet pan and cistern- Anywhere where owners obviously exhibit pride in
in near new condition and picked up factory secondstheir gardens and homes.
for a paltry few dollars.- Estates where restrictive covenants apply and are
Within a couple of weeks of commencing thisenforced. Nothing detracts from property values
project, it was completed for a fraction of the costmore quickly than broken down vehicles or trucks,
a professional would have charged. This one additioncaravans or trailers parked on front lawns, rubbish
alone added many thousands to the value of theirbins left in view, unkempt gardens, ugly air
house, not to mention the enjoyment they receivedconditioners, television aerials, satellite dishes or
from the luxury of an en-suite bathroom with accessanything which tends to spoil the aesthetics of the
to the recently installed swimming pool.neighbourhood.
Before you ask, no, they did not dig the hole for the- Suburbs that are well maintained by the local
pool or lay the brick paving around it. The latter taskauthority. Let's face it, not every suburb receives the
was one considered beyond their tools and expertisesame care and consideration by local councils and
owing to the tricky curves of the kidney-shapesome local authorities look after ratepayers better
below ground fibreglass pool.than others. Potholes, weedy verges, brown dried-up
With the en-suite completed and the pool in place,parks, a poorly enacted or non-existent graffiti
they suddenly hit upon the idea of converting aremoval policy or the lack of footpaths or
free-standing brick garage to a self-contained flat andrecreational facilities reflect badly in property prices.
rent it out to help pay off the mortgage. The building- Suburbs which boast a university.
was surplus to their requirements as the home- Suburbs hosting at least one well regarded private
already boasted a double, lock-up garage under thesecondary school.
main roof of our house.Naturally, the more ticks a suburb earns, the higher
The big question the couple faced was, "Would thethe property values so you may have to trade off
council bureaucrats permit the conversion?"some things in order to find a project within your
There was only one way to find out.budget. Nevertheless, the canny investor should look
Armed with carefully drawn plans showing the mainfor the best value for money and there are some
dwelling, the separate garage and a proposed floorexcellent bargains to be found which will bring
plan for the new flat the couple approached the localsurprisingly good returns. However, do not choose
council. The pasty-faced, bespectacled young man inwith your heart (emotion). This is purely a business
the engineering department took one look at theproposition and you should be looking to meet the
words "proposed granny flat" printed neatly beneathneeds of the greatest numbers of buyers, NOT
their drawings and a look of horror hijacked hiswhat necessarily appeals to you.
countenance. 'We can't allow that,' he exclaimed in aLastly on the question of deciding where to buy,
shocked voice.never buy without knowing who your neighbours are.
'Why not?' the ex-cop countered naively, althoughBecause it is worth hammering that point home I'll
the couple weren't really surprised. Both had hadrepeat it. Never buy without knowing who your
considerable dealings with public servants of allneighbours are.
shapes, sizes and governmental affiliations and knewA little time knocking on doors around your chosen
to play it cool deciding it as just semantics. Changeproperty asking a few discrete questions might save
the wording, tinker with a few lines and quote a fewyou heartache and dollars down the track. The most
examples of real or imagined cases who had beencarefully tended home might well house a drug
(allegedly) approved and they knew they wouldlaboratory or people who otherwise make life
eventually get their plans passed.unbearable.
The conversation between the official and theRemember, have fun and you'll pick up what you
ex-policeman went something like this;need to know as you complete each step.