The funny thing about the letter “R” is that you see it a lot around Restumping Melbourne. It may be a prominent letter in our brand, but it’s also a great signifier about a few terms that we use frequently around here. We call them the three “R’s”. What exactly are the three R’s? Rewiring, roofing and (our personal favourite) restumping. What do these have in common? Well, lucky for you, you’ve stopped by the Restumping Melbourne blog and we’d be happy to explain them. The goal of the Restumping Melbourne blog is to educate and inform our valued community of customers about the work that excites us. This doesn’t stop with just restumping, although it’s always our goal to properly reinforce the foundation of your home. The blog goes far beyond that, and you can always check back in for tips and tricks ensuring that your home is safe, comfortable and easy on the eyes.

It’s a common marketing ploy to see signs that say, “renovator’s delight” on homes that are about to go on the market. The phrase delights many a project lover and terrifies those who veer on the side of staying safe. The point that we want to focus on today is that it can be misleading. The scale of possible renovations is vast, so you don’t want to take that sign at face value.

The first thing to think about is purchase price versus resale. As you’re initially exploring the property, are you seeing where you can add initial and long-term value? If you’re seeing a lot of possibility, the next step is pricing out exactly what the renovations will cost. You don’t want to purchase the renovated home, find a whole host of other renovations that are necessary, and end up paying even more than you bargained for. Be clear about your intentions and you’ll notice a huge difference in the cost of your home overall.

If you’ve seen and toured the renovated home, and you know that it’s something that you want to move forward with, the next step is home inspections. Here’s where we really want you to keep an eye out, specifically for the three R’s that we mentioned – roofing, restumping and rewiring. You’ll see them a fair few times on here and for good reason… they can be expensive.

Older homes will always benefit from rewiring, but there’s a large price tag attached. It won’t add any value if you’re planning to sell, and though it’s necessary, it won’t add visual appeal. Restumping is another necessity that you can’t avoid. If a home needs to be restumped, make sure that you’re adding those costs to that of the renovated home before you buy. Roofing can go either way. If you’re just looking at repairs or repainting, it’s not a deal breaker. If you need to replace the roof, that’s a whole different story.

The bottom line is that it’s always important to ask as many questions as possible. Consider us a valuable resource and email, call or visit us any time.

There’s a reason that purchasing a home is high on the top ten list of most stressful life events. As context, marriage, divorce, and starting a new job also made the cut. It’s a financial investment, as well as an emotional one. Whether you’re purchasing your home to live in immediately, or as an investment for later on down the road, this is not a decision to take lightly. But with smart planning and the right resources, exploring real estate can be easier than you think. That’s why today Restumping Melbourne has prepared a handy checklist to ensure that you’re making the smartest real estate decisions.

Understand the real estate purchasing process

You’ve found the home of your dreams and you’re ready to make it yours. We’re looking at five main steps– making an offer, reviewing a disclosure, appraisal, inspections and final loan review (as applicable). In some states and countries, these steps will vary, but this is a good core list to study.

Research cash flows and returns

If you’re not planning on moving into your future home immediately, chances are that you’re looking at it as an investment. As with any investment, you want to understand what you’re going to make on it. First make a list of expenses related to the new property and understand how much cash that you’re shelling out. In a column adjacent, forecast how much money this property will bring in on an annual basis. This may be through consistent monthly rent, or it may be as a Airbnb or short-stay. There’s no universal best practice, but it’s important that you know what works for you.

If you’re going to need mortgage financing, shop around

Gone are the days when there was one avenue to procure a mortgage. This is now a market all on its own and you’ll want to do your homework so that you get the lowest rate. When your rate is lower, you pay less in interest over time (generally a 15 or 30 year period), which means more money back in your pocket. If you’re a student, or newer to the market, you may even qualify for special exceptions.

Reach out to your potential homeowners association (HOA)

Much of the time, you’re not just investing in a property; you’re investing in an area. We’re not talking about looking at the finances of your neighbours, but rather the state of the HOA’s finances. If you move into the neighbourhood or complex, where will your dollars be going? Have they invested them wisely in recent years and do you generally trust their instincts?

Know if your investment is standard or non-standard

This doesn’t mean that you’re investment is less special or important, non-standard investments refer to land, vacation rentals, flipping properties, etc. The area that you live in may have special stipulations and rules for what money you can make on properties like these.

Questions? Let us know. And be sure to check out our blog for more information around your home.