27 October 2000
Archicentre Releases On Line Designing for Investment Return Series
27 October 2000
Archicentre Releases On Line Designing for Investment Return Series
People investing in property will now be able to get advice on the best ways to maximise the returns on renovating property through Archicentre, the residential advisory service of the Royal Australian Institute of Architects.
Last year Archicentre architects undertook four thousand design and renovation reports for home owners on property valued at in excess of $4 billion.
Mr David Lawrence, State Manager of Archicentre NSW said the new on line service at www.archicentre.com.au when completed will provide investors with a number of scenarios which will allow them to be aware of the traps of investing or renovating properties for investment.
A series of audio seminars including one, which explains the Archicentre Design Report Service, is included on the web site under audio interviews.
With an ageing population many of today's baby boomers are purchasing homes to renovate and live in with a view to gaining capital on their resale when they move to smaller or assisted accommodation in their later years.
The renovation decisions they make now will certainly impact on the resale value of their property and the extent of their retirement funds in the future, Mr Lawrence said.
"The basic top ten tips for renovating to maximise investment returns will be provided as a free fact sheet and visitors to the site will be able to look at a number of before and after examples of renovations.
"The success of an investment property depends on both a wise choice of location and recognising the potential of the existing structure."
Archicentre's Renovation Report provides professional advice with concept design sketches and an indication of costs providing for investors a realistic assessment of potential. A cost guide will also provide an indication of the amount of funds, which are required and audio lectures on how to work with an architect and utilise professional advice.
Mr Lawrence said some of the top ten tips for renovating for maximum return include:
· Purchasing a property that is structurally sound.
· Assessing the financial potential with a design and cost analysis before purchase.
· Ensuring the structure is capable of being used for the renovation required for return.
· Checking the planning regulations to avoid costly planning appeals.
· Ensuring the design, finishes and fittings do not over capitalise the property.
· Utilising design to deliver lifestyle requirements being demanded by the market.
· Creating a design where additions are compatible with the existing structure.Mr Lawrence said that investing in a property and then organising a renovation is similar to starting up a small business where there is an investment in the development of a product and finally the marketing of the product.
"At every step of the way as in small business there is a need to keep a close watch on costs and manage the project carefully to ensure a good return."
"The briefing, contracting and management of the trades people delivering services and products is a crucial part of managing and securing a good return on the investment."
Unfortunately many people invest in property to secure their financial future without a strategy or any idea of the cost of renovating or maintaining the property which they have purchased. One of the more disturbing issues is that some people actually devalue their investments with poorly conceived designs or inappropriate materials, providing a negative cash flow for the investments and poor re-selling options.
Mr Lawrence said that Archicentre has developed an on line checklist for investors to provide an awareness of the main issues involved in renovating for maximum investment return which is available at www.archicentre.com.au
An Archicentre Renovation Report costs $715.00 in New South Wales, representing excellent value for professional architect's design input.
Media Enquiries:
David Lawrence State Manager Archicentre NSW (02) 9555 5111 Mobile 0407 833 324
Ron Smith Corporate Media Communications (03) 9818570010 renovation ideas that will maximise the return on your property investment
· Before signing the contract of sale, assess the financial promise of the home with a design and cost analysis.
· Not every home is a candidate for renovation. Start with an Archicentre design report to answer questions of feasibility.
· Arrange an Archicentre pre-purchase inspection to ensure the home is structurally sound. According to Archicentre, cracking exists in 1 out of 5 Sydney residences.
· Closely adhere to planning regulations. Renovations that collide with planning authorities are known to erode confidence in a project due to expensive, time-consuming planning appeals.
· The best house on the worst street may have gold taps and chandeliers, but it won't improve the property value. Be careful when adding fittings and finishes that over-capitalise on the property.
· What you might find funky, others may find hard to relate. Be cautious of renovating to your selective lifestyle and taste. An eccentric design may be an acceptable feature in 20 years, but today, some may find it "different". Produce a design that is compatible for all tastes.
· Create a design with additions that compliment the existing structure.
· Furnish complete drawings and offer them to competitive tenders. Select the builder that can achieve exactly what you want, both economically and with skill. Accepting the first quote could cost you thousands before the first wall is raised.
· Confer with real estate agents on the trends of the particular suburb. Research the socio-economic history as well as the rise in property value. Most importantly, find out what renovations work.
· Seek the advice of a professional. Some sellers find their newly renovated home looks different to what they envisaged. It's poorly planned, the temperature is hard to control, and the cost was more than they expected. They fear the value has greatly diminished. This is where an architect can help.
· Call Archicentre today, 1300 13 45 13 or visit www.archicentre.com.au to see how you can maximise the return on your renovation. People investing in property will now be able to get advice on the best ways to maximise the returns on renovating property through Archicentre, the residential advisory service of the Royal Australian Institute of Architects.
Sydney example
The success of an investment property depends on both a wise choice of location and recognising the potential of the existing structure.
It was a path that Judy Passlow, a Sydney executive, followed upon discovering her dream house in Mosman Bay.
Exterior before renovation
Exterior following renovation to atticShe loved the location, "inside a leafy enclave, facing a park, and only two minutes from the water." But she found the inside plan to be less than desirable. "However, I could see great renovating potential," said Judy Passlow. She thought the attic under the high-pitched roof would make an excellent master bedroom with an en suite. "I wasn't sure if it was feasible, but if it was, I knew this was the place I wanted."
She needed someone to help articulate her ideas. She arranged an Archicentre design report. Owen Kimberly was the assigned architect. He consulted with Judy and produced some drawings as a result of their discussion. It was decided to keep the existing façade, and recreate the interior. The brick walls were eliminated, leaving a large, open space with the living area and dining room, joined by a single, square archway.
Interior renovation including living and dining areas
Interior after renovationThe greatest addition is the conversion of the attic into a bedroom, accessed by a single wrought iron staircase. With the high emotions surrounding projects like home renovations, Judy found Mr. Kimberly, a calming influence. "The architect was fabulous, when things were difficult, he helped smooth things over. And the investment potential? "The renovation has pushed the value up, well and above what it was."
Attic master bedroom following renovation
Balcony adjoining the master bedroom
