Renovation is a favourite strategy for some property investors. The idea of buying a run-down property, putting in some hard labour and a few dollars and the resulting payoff, appeals to many.
The tricky bit is often actually discovering the winning fix-me-up projects and then planning what to do with them once they are found.
Finding a genuine renovation project that can return a profit is harder than one would imagine. These days consumers seeking such properties are numerous and winning properties are generally scarce. The secret is to study the market: taking note of what is actually selling, what features are popular with buyers and keeping an ear to the ground when on the hunt for a renovation opportunity.
Keep an eye out for poorly presented or unkempt property, even if it isn’t offered for sale. Mortgagee and deceased estates are always a good option and it’s wise to develop relationships with active agents so that they will know exactly what you are looking for.
Tips for Finding a Renovator’s Delight:
- 20 – 40 year brick veneer or plank homes that lend themselves to affordable external renovation such as rendering.
- Properties where a coat of paint, clean up and landscaping would enhance value.
- Easy kitchen refurbishments can generally pack a profit given the availability of flat-pack kitchens.
- Properties that lend themselves to the easy addition of an extra bedroom without prejudicing living space.
- Properties where carpets can be removed and genuine timber floors can be polished and present well.
Undertaking your renovation should be planned. Remember your strategy is to make a profit, so think with your head and not your heart when undertaking renovations.