What you need to know before you start renovating!
With so many great property buys now available on the market, many buyers are looking to buy and renovate. This has proven a great way to add value and your own personal touch to your property.
I have listed and sold properties all over Ipswich to families looking to renovate a house into their dream home.
So having found this great little article (from The Real Estate Conversation) I thought you might find helpful if you are looking to renovate.
“What you need to know before you start renovating” (from The Real Estate Conversation)
In 2014-2015, Australians did $7.2 billion worth of renovations that required approval. If that many people are already doing it, surely you can too. Here’s where to start.
Owner-builder/hire a contractor
This is the first decision. Once you know the size of your project you will know whether you can do it yourself or not. Constructing a shed may be easy, but constructing a second floor to your house, not so much. With this in mind, decide whether you want to hire a contractor to do the work for you or act as an owner-builder and manage the build yourself.
If you think you would make an excellent The Block contestant and opt to be an owner-builder then you take on the legal responsibilities of a registered building practitioner. Including ensuring OH&S for your site, having all permits and applications approved, taking out the appropriate insurance. In most states you are required to undertake an accreditation course to act as an owner-builder.
This may sound intimidating but gone are the days of our folks just adding a storey to their houses willy nilly, and for good reason. These courses are most valuable in simply outlining the steps you will need take in order to cover your responsibilities.
No, not the District Attorney. DA stands for a Development Application and is more applicable for larger renovations. Especially if they risk affecting your neighbours’ properties. Smaller renovations, such as minor landscape design or fencing, will usually be exempt from the requirement to fill out a DA. However, there is one port of call to always make before worrying about what files to fill out.
Even with a small project it is always worth first seeking advice from your local council. Their website can be a great place to start before getting the advice of a council planner who can help you understand what steps to take.
A Building Application follows logically from the Development Application. It entails the processes of how you’re going to build, using what materials and whether these comply with building codes. Again, seeking advice from your local council may help you avoid filling out unnecessary forms.
Workers Compensation insurance, Construction insurance, Public Liability insurance, Home Indemnity insurance. This is one of those points where you may feel out of your depth. Not all of these insurance covers are necessary but the most important is Home Indemnity insurance (or Builder’s Warranty). If you’re acting as an owner-builder than you’ll need to be covered for the quality of your work in case you sell your property within a certain number of years (6-7 on average).
Smaller projects such as fences, is considered ‘associated work’. In many states, Home Indemnity is only enforced on associated work projects exceeding a minimum cost price (on average $20,000). If you are hiring a contractor for your work, ensure that they have Builders Warranty insurance.
Things you would never in your life consider
If the extent of your experience with renovations is painting the odd fence, then acting as an owner-builder may not be for you. The Building Code of Australia now includes the requirement of new buildings to be termite-proof. While according to the National Construction Code renovations, alterations and additions now need to comply with a 6 Star energy rating system in terms of the building envelope (the walls, roof and floor) as well as for lighting.
Without scaring you, there are legal considerations when doing any sort of renovations but none are hidden from you. Simply follow the advice of your local council and ask them what to be aware of with your particular project.
As you can see renovating can be very rewarding but you need to think carefully before you begin.
If you like to discuss your next property purchase in the Brookwater and Springfield area then please give me a call and I will shout you a coffee!
Note: Keith Broekman is a Licenced Real Estate Agent with a strong track helping his home owners in his community better understand the property market. To learn more about Keith please visit his website at www.kbroekman.com.au