Think long and hard about your renovation budget; a good rule of thumb is to spend between 5% and 10% of a property’s value.
There’s no doubt cost-effective updates to a tired property, such as paintwork, floor coverings and kitchen and bathroom updates will not only increase your return, it will improve the quality of tenant that you get.
For homeowners looking to maximise their selling price but avoid over-capitalisation, be careful not to spend too much of the property’s value on a kitchen renovation. When it’s your own home, you can go up a bit more but when you’re doing it for profit, you have different criteria.