Renovating Your Cape Town Investment Property
Category Property Advice
As a savvy property investor, you know that renovating your Cape Town investment property is on your vision board. Whether it's time to improve your property's amenities to better serve the needs of your tenants, or you want to shine it up for a sale, renovating your investment property takes careful consideration. Here are our top tips on renovating your Cape Town investment property.
Know your goals
Before you bash down walls or draw up a blueprint, consider your property renovation goals. Your reason for renovating will have a direct effect on the rest of your decisions. Your property may need serious renovations. Alternatively, you could be looking to update the style a little. Perhaps you're looking to sell your investment property, and want to increase the property's value. Once you know your renovation goal, you can start making decisions around what to do.
Find the sweet spot
It's all too common that a renovation project goes over budget, exceeds its deadlines, or becomes a process that feels like it has no end in sight. Finding the sweet spot between what renovations serve your goal, and what renovations are going to end up as unnecessary expenses, is key. Focus on functional renovations, first, and then look towards value-adding opportunities.
Consider the costs
Your renovation budget may not match up to what you end up spending, so it's best to plan for the worst. During the process of property renovation, it's common for new faults or imperfections to come to light, so it's important to try and cater for that. We recommend adding 10% to 15% on top of your final renovation budget to ensure you can afford to handle any issues that may arise. Beyond giving yourself a little buffer for emergencies in your renovation budget, consider these costs too:
- Planning and permits: If your renovations are going to require a planning permit, or municipal approval, that will take time to obtain, and cost money to process. Make sure your renovation budget and timelines provide you with enough lead time and money to make it all happen
- Labour costs: Skilled labour, including artisans, architects, and other contractors, are a key requirement. While it may be tempting to try and source a contractor who can "do it all", you may find their work won't be of the top-notch quality you desire. Consider your renovation project's complexity, and do your research to find reputable, qualified suppliers and contractors. Obtaining comparative quotes for each aspect of your renovation project is a must, too
- Material costs: Whether its new granite countertops, or a new paint job you've planned, make a definitive budget for your materials. Don't be shy to shop around, and focus as much as you can on obtaining sustainable materials that suit your renovation goals.
Choose your renovations
Now that you're all set with your budget and big ideas, it's time to settle on what you intend to change or update within your investment property. Modernising kitchens and bathrooms is always a good investment, while security upgrades are too. Adding energy-efficient upgrades, or installing new technologies into your investment property can make it more appealing for a potential buyer or tenant.
Add excellent value
Whether you're upgrading to attract a particular type of tenant, or renovating before you put your investment property on the market, there are a few ways you can add excellent value, with little touches. Adding innovative storage solutions, or pet-friendly features can help turn your investment property into a more attractive option. Creating cute outdoor spaces can also help, and attract more people towards your investment property.
Get the right advice
Now that you know what you'd like to do when renovating your Cape Town investment property, it's time to get the right advice. Talk to estate agents in your area to find out what tenants and buyers are looking for. Ask for a property valuation or advice that can guide you towards finalising your investment property renovation plans. That's where our Knight Frank team can't wait to chat. We'd love to guide you through your Cape Town investment property renovation journey.
Author: Knight Frank