Buying to renovate seems to be one of the big crazes in investment right now…
Many will tell you that buying an old house, renovating it completely, and then selling it on is the path to profit…
However, that particular path can be fraught with difficulties…
It’s so easy to overcapitalise on a project and end up spending far more than you intended on renovations.
Your attempts to take control of your financial future end up going down the drain along with your money.
That’s where Dashdot hopes to help.
We believe that investment success lies in finding high-performance properties that offer:
- High yield
- High growth
- Value adds
It’s the latter point that we’re going to cover here as renovations can be a value add…
When done the right way.
Here’s how you renovate without blowing your budget.
Buy Under Market Value
If you’re buying a property that needs renovations at market value, you’re starting off on the back foot.
It’s really that simple.
A prime property for renovation is one that costs you less than comparable properties in the area.
If you’re spending at market value, you’re going to have to work even harder to build equity.
You want to be in a position where you have equity from day one of the purchase.
Only Focus on Cosmetic Renovations
Does the kitchen need gutting?
That’s not a good sign.
Do you need to replace the entire bathroom?
Run away because that property might cost you more than it’s worth.
To avoid blowing your budget on renovations, you should focus solely on the cosmetics.
These are all low-cost, low-work value adds that can make a big difference to the property’s value.
At an estimated cost of $10,000 to $20,000, you could make returns of between $20,000 and $60,000.
You just need a little help to manage that budget so you can achieve high growth and high yield through your value adds.
Take our 15-second application to find out if we’re a good fit for you.
If we are, we’d love to help you take the next step on your investment journey.