Buying to renovate can be a bit of a risky strategy...
On one hand, you’re usually getting a property below market value because it needs some work...
On the other, you’ve got to dedicate time and money to bring the property back up to speed...
Typically, we recommend buying a property that can stand on its own two feet from day one.
As in, you get positive cashflow and start building equity.
And that’s going to take you to your next investment faster.
Renovations are usually a value add that can give the property a boost.
But if you are looking to buy to renovate, these are a few tips that may help you along...
Tip #1 – Avoid Structural Work
You’ve heard all of the horror stories of people buying properties to renovate only to go thousands of dollars over budget.
Structural issues are usually the cause.
They cost thousands to resolve and aren’t even part of the original renovation plan.
They can even hold up the project and cause further delays that cost even more money...
Such problems include:
termite damage, stump issues, or issues with the roof.
Make sure you get an inspection carried out by an eagle-eyed professional who can spot these issues on your behalf.
And if there is structural work that needs doing…
(unless that is part of your plan!)
Tip #2 – Check the Planning Guidelines
You might have grand ideas of tearing down walls and building extensions...
But the local council may have other ideas.
Any project that involves expanding the space that the property takes up will require a visit to the council.
You may need to get specific planning permission for your project...
This is where our advice about buying a property that stands on its own two feet comes into play.
You’re looking to add value to a high-performing property...
rather than spending thousands to create one.
We can help you find high-performance properties that will benefit from your renovation work.
It’s all about high performance that helps you build towards your future.
To find out if we’re a good fit, take our 15-second application today.
Let’s build your High-Performance Property portfolio, together.