Start Property Investing With A Renovation

Many people would like to get involved in property investing but feel that a buy and hold property is not their goal.

If this is the case a simple buy, renovate and sell property may be the answer. Unless an investor has done some renovation before it will pay them to thoroughly research this topic be getting involved.

Many investors have made a lot of money along the way with this strategy, but it is also easy to overspend and either lose money or break near even after all the work.

Buy, Renovate and Sell Strategies

• buy in an area that is attractive to buyers
• unless you want to spend top money buy in an area that attracts buyers at the lower end of the market which are first home buyers and investors
• buy a cheap property with renovation potential
• carefully and accurately calculate the cost of the renovation before purchasing
• go for a long settlement to allow you time to organise the tradies and the product deliveries
• stick to the renovation budget, if you over spend in one area, cut back in another
• list the property for sale sooner rather than later because it takes a week to ten days to get the paperwork and photos organised
• keep details of all your expenditures for your tax purposes but also for the new buyer because if they are an investor they can get depreciation

If you do not sell in the end but rent it out remember that the costs of upgrade are tax deductible and should be noted down by a chartered quantity surveyor.

Filed Under: Featured • Investment Strategies • Quantity Surveyor • Renovations