Kiwis love to renovate, and it’s easy to see why. Renovations can transform our homes and have the ability to create big profits. Spend your money wisely and you’ll reap great rewards; overcapitalise and you could end up with more mortgage than house. The most important thing is to have a realistic idea of cost.
A professional Kiwi house flipper has revealed the budget tricks she uses that helps her save thousands when renovating houses.
Hamilton woman and mother of three Ange Demchy used to be a school teacher but when her long-time contract ended three years ago she decided to take on her hobby of house flipping full-time, according to Daily Mail Australia's Femail.
Demchy bought her first home at 21 and renovated it. Since then, she has done up a further five of her own and seven for clients in the past three years.
The businesswoman and her husband Tony bought a six-bedroom, three-bathroom home last year and started renovating in October.
Speaking to the Femail, Demchy said they started renovating as soon as they moved and they started stripping wallpaper.
"Within six weeks we had done the kitchen, entryway, foyer, staircase, built and installed the fireplace in the lounge and completed the formal dining area," Demchy said.
Before making their investment, Demchy was told by her agent that she would need to budget $200,000, but she was determined she could get it done for less than $100,000 by adopting budget tricks along the way.
She told Femail that their most expensive space was the kitchen, costing them $20,000 for a stone bench, cabinets and appliances, but was able to save some money doing their own tiling and flooring.
Before: Ange Demchy kept some of the original cabinetry and the pantry wall and painted them over in grey. Photo / Ange Demchy
After: She saved money in the kitchen by doing a subway tile splashback in the kitchen for $120. Photo / Ange Demchy
She also went directly to the manufacturer to buy products to save money, including spending $6000 on bench tops.
"The fireplace has cost $12,000 all up too and the new carpet and flooring downstairs was another $5,500. We are probably getting quite close to the $50,000 mark - but we have nearly completed the ground floor of a 410sqm house," she told Femail.
Demchy also saved money in the kitchen by doing a subway tile splashback in the kitchen for $120. She also kept some of the original cabinetry and the pantry wall and painted them over in grey.
The pair are currently renovating the bathroom and laundry which is included in her budget so far. Demchy says all the upstairs bedrooms will be minimal cost.
Demchy and her husband revealed they cut costs where possible by doing expensive tasks themselves.
Examples include using framing from Bunnings to create panelling on the walls, stripping the entire home themselves to save on labour and making changes that make the most impact. "Each room was designed by me with my cosy feeling in mind and I want it to feel lived in and loved so I do a lot of op-shopping to save on money for my furnishings and accessories," she said.
Before: Ange Demchy and her husband revealed they cut costs where possible by doing expensive tasks themselves. Photo / Ange Demchy
After: Ange Demchy said that the best properties are the ones you can easily add $100,000 value doing cosmetic updates in a short time frame. Photo / Ange Demchy
"Most are from The Salvation Army, free off the Facebook pay it forward page I belong too, or bought from Kmart."
While the project isn't yet finished, Demchy is certain she can keep to her budget.
She also shared advice to those who want to flip themselves, suggesting that people will need to spend a lot of time and effort on finding the right home.
Demchy said that the best properties are the ones you can easily add $100,000's value doing cosmetic updates in a short time frame.
"Have a really good agent that steers you in the right direction, not one that just wants a sale, register yourself as a house flipper and get a really good accountant and get your finances approved by the bank before you start," she said.
The businesswoman also said renovating needs to be "in your blood" and that you need to have a passion and a good sense of design to attract the market.
Ange's top five budget renovation tips?
1. Go directly to the manufacturer for items as this will save you money.
2. Do the hard labour yourselves instead of hiring builders. Also, invest money on the right tools.
3. Find a home where you can make the most impact. Choose one that only needs cosmetic updates and one without needing major structural changes. 4. Emotions are key when selling a home, so ensure every room has a feeling - not a theme.
5. Get quotes and compare prices from different electrical and plumbing companies. Small businesses tend to charge less as they don’t charge the big rates for overheads like the well known large firms do.
