Whether you’re looking to by an apartment, a unit, a duplex or a freestanding house, a quick renovation can be the key to unlocking access to better quality, higher paying tenants.
You don’t need to spend a fortune, either.
Sometimes, it’s the simplest cosmetic renovations – like a coat of paint, some fresh carpet or new lighting fixtures – that can have the biggest impact.
When you’re shopping for renovation real estate, it’s important to have a vision for what the property could be, rather than what it is.
This is where you can lean on your team of experts, such as building and pest inspectors, architects and real estate agents.
They will help you work out the most appropriate renovations that will get you “bang for your buck” and suit the demographics of the area.
If you’re in the process of establishing your buying rules to help you identify a property with huge renovation potential, keep these 9 golden rules in mind:
Buy at a discount. In a competitive market, aim for 5-10% below market value; in a stagnant market, aim for 20-25%.
Do your due diligence. This will help you to identify growth areas with strong renter appeal.
Don’t be afraid of old, ugly properties. Just be sure to buy the worst house in the best street.
Consider your target market. Transform to the tastes of the market, not to your own personal tastes.
Look for low-maintenance, high-impact renovations. Go for properties that need low-cost cosmetic improvements only, not large-scale, expensive structural changes. This means you should avoid adding rooms or installing pools unless it’s integral to your strategy.
Buy a moderately priced home. By purchasing an average-sized property that is below the median price in area, you’ll appeal to the broadest range of tenants.
Set a renovation budget. Spend less than 10% of the purchase price on renovations.
Maximise your tax benefits. You can get a double bite of the depreciation cherry by getting a chattel valuation before renovating.
Once the renovation is complete, revalue the property (or sell, if it fits with your investment strategy) to realise the new equity.
If you would love to have a ‘clear direction’ in growing your property portfolio…so you feel confident and in control…
If you’d love a clear written plan to reach your specific financial goals over the next 5-10 years…
And, if you want to ‘speed things up’ so you can reach your financial goals much quicker….
Then your next best step is to book a Property Action Call, with one of my personally trained coaches…
In your property action call you will…
Discover how you could ‘tailor’ my ‘10 properties in 10 years™’ investing system…to your personal situation
Get a clear ‘snapshot’ of where you are now financially…so you feel clarity and confidence moving forward in leaps and bounds
Discover property investing mistakes that you may be making…that are hidden from your view.
And much more.
I value this call at $295. But it’s yours free because I want to ‘jump-start’ your investing.
The only catch is there are currently only a handful of spots available in the coming week…and they will go quick.