Gentrify Specialist Renovation Builders Melbourne & Geelong
As expert renovation builders, we know that renovations and extensions are a great way of improving your home, whilst manufacturing equity and adding value, especially for older properties and during the softer phases of the property value cycle where capital gains are not occurring on their own.
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Professional Extension & Renovation Builders
Whether you goal is to upgrade the home you live in or strategically manufacture equity in your property for investment purposes, you have come to the right place. The team at Gentrify have vast experience in successfully undertaking home renovation and extension projects for homeowners and property investor clients.
Are you a home owner looking to renovate?
If you love where you live, but your family has outgrown your home or you no longer like your home design or layout – Gentrify are expert renovation builders and we may have the solution for you.
For many people, buying and selling their home is a highly stressful experience and people often neglect to consider the true cost of buying a new home and re-locating. Real estate agent fees, legal fees, government stamp duty and furniture removal costs typically add to tens of thousands of dollars, which is money down the drain, not to mention all the stress and effort involved in buying and selling your home.
Working with an experienced renovation builder means you can avoid unnecessary costs, so your hard earned money can be put to better use by renovating your home to suit your lifestyle and budget, while increasing the value of your home and creating instant equity. Home renovations and extensions are a great way of achieving your lifestyle goals and increasing your net wealth in a low stress and cost effective way. As the saying goes – “why move when you can improve?”
Are you a Landlord looking to manufacture equity?
The potential benefits of renovating an investment property are often misunderstood or underestimated. Renovations and extensions are a great way of manufacturing equity and adding value to your investment property, regardless of the property value cycle. In fact, many of the most savvy property investors purchase and renovate older properties during the softer or flat phases of the property cycle as a way of maximising their wealth.
You can use your equity to get a head start on your mortgage, use the funds as a deposit for a second property or secure higher rental returns on your investment property.
Renovations also make your investment property highly tax efficient – everything that is thrown away during the renovation is immediately depreciable, while new items installed during the renovation can be depreciated over a period of time.
As expert renovation builders, we do everything we can to maximise your returns, which is why we only use qualified, experienced and professional project managers and tradespeople who know how to make the most of your budget. We have also partnered with an expert property accountancy firm who work with our clients to ensure that their tax returns are optimised whilst complying with all tax laws and regulations.
Gentrify are expert renovation builders who specialise in helping Landlords to get the most out of their investment properties through strategic renovation projects
We provide a free on-site assessment of your investment property and with our comprehensive modelling approach; we can provide a realistic projection of how your renovated property should perform.
- Create instant equity
- Increase rental return
- Increase tax efficiency
- Reduce vacancy rate
- Reduce maintenance costs
With the right assistance, you can maximise your property portfolio returns stress free:
- No out of pocket expenses – borrow against our building contract
- No surprises – we provide fixed price contracts
- No mistakes – we help you decide on the right work to complete and finish level to maximise your returns
- No time wasted – we’ll be in and out faster than you thought possible
- No sleep lost – our structural work is guaranteed for 10 years
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What types of building renovations are there?
Cosmetic Renovations – do not require major structural work or building permits and can normally be completed within a short period of time (typically 4 to 12 weeks, depending on each project’s scope). Cosmetic Renovations typically include:
- Bathroom and kitchen upgrades
- Floor covering replacement (timber, tiles, carpet etc.)
- Fixtures and fitting upgrades
- Non-structural room layout modifications
- Roof Replacements
Structural Renovations and Extensions – generally require design, engineering and building permits and can normally be completed within 6 to 9 months, depending on the scope and magnitude of the project. Structural Renovations typically include:
- Home extensions (additional bedrooms etc).
- Loft conversions
- Structural changes and strengthening
- Knocking out and/or re-locating walls to create open plan living spaces
- Changing floor plans
- Cosmetic renovation work (see cosmetic renovations)
Our Extension & Renovation Builder’s Process
Every home renovation project is unique and as ‘design and construct’ renovation builders, we make your home renovation experience as seamless and stress-free as possible by managing the entire process from concept to completion. Here’s how our process works:
The process starts with you making an enquiry with us. You can call us on 1800 GENTRIFY, email us at email@example.com or complete the online web form at the bottom of this page. We will then arrange a free consultation to understand your objectives.
Gentrify’s specialist extension and renovation builders will visit your home and take the time to listen carefully to your requirements and objectives. During the visit, we will provide you with some initial concept ideas and give you a rough cost estimate for the project. We will also provide you with an overview of our construction process and answer any questions you may have.
Following your authority to proceed, our design team will gather the required information, measure your home and create an initial concept design with basic specification and cost estimates.
Once you are happy with the concept design and instruct us to proceed, we move into the detailed design phase where our Designers, Engineer and Estimator fully design, scope and estimate the project. Following this, we will then confirm the final fixed price for the project.
We take care of the Building Permit applications and Town Planning permits (if required) and once approved, we both enter into a Building Contract. Then comes the exciting part – our construction team commence on site and transform your home! Our highly skilled Project Manager and tradespeople will make every effort to make your construction experience as memorable and stress-free as possible.
Once the transformation is complete, we reach hand over and provide you with a 10 year guarantee on our structural work leaving you with peace of mind to enjoy your beautifully renovated home.
How can I increase my investment returns?
Allow us to provide a worked example…
John owns an investment property that is tired, out-dated and in need of some TLC. The property is valued at $520,000 and is returning $360 per week in rent. John has a loan of $350,000 for the property.
With all costs taken into consideration and after tax, John’s property is negatively geared and is costing him $2,380 per annum.
After reviewing the property and researching upper rental rates and sales prices in the area, together with the quality and specifications required to achieve those returns; Gentrify undertakes a strategic $104,000 renovation to ensure that the property is not over-capitalised. John contacts his bank with Gentrify’s fixed price building contract and borrows the full $104,000.
Within 2 months, John’s property renovation is complete and a new tenant signs a rental agreement for $540 per week.
John has the property valued at $680,000 creating $56,000 of equity to leverage on for his next property investment.
Best of all, even after the increased mortgage repayments, the property is now making in excess of $2,500 a year for John. This is achieved through the higher rent and a much larger contribution from the tax office.
What is Manufactured Equity?
Manufactured equity is where the value of your property after renovation is greater than the value of your property before the renovation, plus renovation costs.
Manufactured equity formula:
Manufactured Equity = Value of Property After Renovations ─ (Value of Property Before Renovations + Renovation Costs)
Peter’s has a 3 bedroom house that is currently worth $500,000 and he is planning to sell the property. The property is out-dated and John plans to strategically renovate the property and add a fourth bedroom to maximise the selling price and maximise his profits.
Peter engages the experts at Gentrify to scope and execute the project to ensure that he optimises his returns and doesn’t over-capitalise on his investment.
Gentrify undertakes the renovations at a cost of $150,000.
The property is placed on the market and sells for $725,000, therefore providing Peter with a manufactured equity of $75,000, or a 50% return on invested capital (gross).
$725,000 ─ ($500,000 + $150,000) = $75,000