1. They're always in demand
While there has continued to be strong demand for building repairs and renovations over recent years, the new housing and commercial construction markets have suffered, as the graph on the right shows. That's because repairs can't just be put off, and all New Zealanders aspire to better homes and lifestyles, so repairs and renovations are always in demand.
2. They offer bigger margins
For most of us, our home is our biggest investment, so when we invest in building a new home, we naturally look to save money where we can. We find the repairs and renovations market to be less competitive, and the labour rates and materials margins consequently higher, especially when it comes to emergency work or design projects. That’s why building maintenance and renovation businesses are generally more profitable than new home businesses and other types of building businesses.
3. They offer better cashflow
Because repair and renovation jobs take less time and resource, the builders and other trades aren't tied up for as long as they would be on a new home or commercial construction project, so they're paid quicker and can move on to other jobs.
4. The work is more varied and interesting
Every job is different and often requires you to think outside the box, so every day is different.
5. There's less capital required to start up
Most building repair and renovation specialists are based from home and require little apart from a van or similar vehicle, a computer and the normal tools and equipment required by all builders.
6. There are lower overheads
Without the need for commercial premises and a large team of employees, overheads are kept to a minimum.
7. There's less risk
All of the above mean one thing - less risk and greater security.
8. There are higher profits
Normally the lower the risk, the lower the profitability, but this isn't true in the repairs and renovations market, where the opportunity exists to enjoy healthy net profits if you have the systems needed to ensure all jobs run smoothly.