This little sheet has been a guide for me over my last renovations so I hope it will be helpful for you as well
This is how it works -
- Fill in all the details about the property on page one - address - size of block etc The agents coments can be important so note those as well as the owners needs or story.
- Next it's time to do your research - see what properties like yours have sold for recently and what is on the market. This will give you an estimated price to pay for the property
- To find out if there is a gap you need to find out what properties that have been renovated have sold for recently. This research will give you an Estimated Sale Price to go back to the market at.
- Next for the fun bit - it's working out your Renovation Cost. Flip the page over and go to town with working out your renovation. These prices are just a guide so please do your own reasearch. Get Quotes where you can
- Now you have all the figures to work out if your project will be profitable. The Purchase price plus buy and sell costs and Renovation costs add up and become your Project Cost A
- Turn back to the front sheet and enter in your Project Cost at the bottom of the page
- You have already worked out what this property will go back to the market for. Your Estimated Sale Price (Don't change it now or you risk fiddling the figures!) You now deduct the Project Cost from the Estimated Sale Cost (B- A)and you have your PROFIT.
- If you have a positive result good - make sure you have a buffer in there and that your figures are correct - I always work out a percentage on cost so I know what my return is 5% is achieveable in the bank for no risk so you do want more than that usually
This worksheet is intended as a guide - you still need to do your own research!.
I print out lots of copies and take it with me when I do property inspections to remind me of things to look for