Let’s say you have purchased a secondary property that has been in the market for 10 years, but the property that you bought is still in a good condition, you do not need to break the walls, you do not need to fix the pipes, you do not need to do any major brick works, but maybe just some interior designing and change a fresh coat of paint. So, coming back, how much are you wiling to spend on renovation?
We’ve mentioned that location is crucial when it comes to buying a property,unless you really love a location so much that you do not matter the land title and the value of the property. In fact, there is a property located at Taman Connaught, yes, the area of Cheras, where the pasar malam jams up the road on every Wednesday night.
The properties there are under a leasehold land with 99 years of lease, it has about 70 more years to go, and the properties in the area are averagely priced from RM550 thousand to RM750 thousand depending on the location of the property in the area. In that particular area, there is one particular property where the owner loves the location so much, he bought a prime unit at RM650 thousand and used about RM1 million to renovate the place, but because the property is quite old and the past owner did not really maintained the unit well, the new owner decided to pay more to renovate the property to make it into a modern looking home.
The new owner hired a team of professional interior designers, told them what he wants and they brought his vision to life. They even added a built in jacuzzi on the balcony for the owner. You can’t see it at all, unless your property is higher than his. Only the neighbours that he had invited before had a chance to visit the property knew about the jacuzzi.
Coming back to the question, how much would you spend on renovation? If you have followed a few well known brands on social media, you will see that many interior designers have posted their past jobs online for many to appreciate and some to find inspiration with. But we suggest all home owners to think property before diving into an expensive renovation.
It’s important to always weigh how much you can afford and not how much you want to use. It’s important to calculate your budget and know that there is a figure that you should be comfortable with before heading into debt with renovation.
Know what you need not what you want, it’s often hard to weight out what we need versus what we want. Yes, your ID will give you suggestions on the renovation but in the end it’s you who makes the decision on what you need for the property. We need to be rational when it comes to making such decisions, spend on only what you need not what you want, what you want can come later, there is no point in splurging everything at one go and then having to suffer for a few months by tightening your pants, you can do minimal first and after that you can slowly add in.
Be involved in the renovation works, communicate with your ID and contractors, ask them about the materials being used, what is the progress of the renovation, when is the estimated completion of the renovation and does the contractors need to stay at your property during the renovation,
Finally, make sure to do your research and understand the market price, research on a good interior designer that has good reputation. Again, make sure to focus on what you need and not what you want.