23 Mar PROPERTY MAKEOVER NOT JUST FOR SUBURBS ON-THE-RISE
Have the years of the famed property bubble gone past, giving more property investors a chance to position themselves in an already-booming market? In Sydney alone, property prices have grown close to 14% in 2015 according to a report by the Australian Bureau of Statistics. In the same vein, property prices are expected to grow 13% on an annual basis as forecasted by BIS Shrapnel . Wow! But who really knows?.
Property price growth is sometimes only confined to specific suburbs that are already considered “hot.” These are suburbs with a very high marketability rate for both houses and units, and in terms of sales and rentals. What about suburbs on-the-rise? How can home sellers in these areas cope? Belinda Grundy, the founder of BG Property Styling, explains how a property makeover benefits home sellers in not only rising suburbs.
Reorienting the homeowner mindset
“In a rising suburb, or in places where prices are preceded by their reputation, it is important for homeowners to realise that the potential for a property’s marketability lies not in that reputation itself but what the outcome of a makeover can do to boost that property’s sale-ability,” says Belinda, who has been involved in hundreds of makeover projects in the Sydney’s north.
Creating a strategic makeover plan
“You always have to have a plan, and that plan should always be in response to market trends and potential purchasers wants and needs – what buyers are looking for and how the makeover project will progress. This means that every makeover project should be implemented with the target market in mind.” Belinda speaks of the property makeover framework she operates with, which includes aligning client goals to makeover results.
Implementing the makeover plan
“Once the plan is set up, the property makeover project moves towards completion. This is where potential hidden profits in a home will finally see through a potential buyer’s eyes. If the property is located in a rising suburb, it doesn’t totally mean that the makeover project will go to waste. Alongside development in infrastructure, and everything that goes with ‘location, location, location,’ the makeover plan itself will hope to take the property into the spotlight.”
Adding value and profits post-makeover
“Yes, it is reasonable for homeowners to consider the profits when renovating. There’s such a thing as value optimisation (or Return on Investment), which is the goal of property renovating for those who sell. However, homeowners must also keep in mind that the prevailing median prices within their suburb can act as the wager towards a property’s post-makeover value. With this in mind, homeowners are assured that they won’t be spending too much or too little to renovate their property.”
Marketing actions post-makeover
“What makes me confident about how I approach every property makeover project is my network of trades and specialists as well as the collaboration between our agents. This means that everyone is informed about the goals of the project and can then move in a single direction. After the makeover project is complete, the Real Estate Agent takes over to complete their magic through their marketing of the property. The segments of our responsibilities will always meet at a certain point thereby ensuring continuity until the property attracts the right market and gets sold.”
Will there be challenges? Belinda says, “Yes, and the challenge is achieving the goal of a property makeover project in any suburb. It still takes us back to the notion of location, but right now, the property market is headed for further growth which translates to more suburbs becoming trendy and, in effect, attracting a wider spectrum of market amidst a growing population.