Renovating for Profit
By Dani Wales
Renovating for profit can be a great investment strategy and create a nice little nest egg for yourself… and it could even turn into a full time business if you play your cards right. To really nail this type of investment model you need to be disciplined and learn how to remove the emotional connection you’ll instinctively have when investing a whole lot more than just money into something.
This didn’t come easy for me at the start, but I am creative by nature and always need to have something that challenges me on the go, so once a project is finished and no longer needs my attention creatively I’m ready and raring for the next one.
So, to help you navigate your way to and through renovating for profit, I thought I’d share my key tips and learnings from my own experiences with this type of property investment.
- Plan & Research – You seriously can’t plan enough at the start. Seek advice and ask the experts, people are very willing to share their knowledge, experiences and opinions with you. No question is a silly question. The internet will be your best friend during this time and your search criteria should be all about getting to know the suburb, its demographic, where it’s come from and where it’s going. And you should be able to tell everyone at your next dinner party about every major development that is set to take place in your area in the next 5-10 years.
- Network & Form Relationships – I am all about forming valuable relationships where each party has something to offer the other. Before we purchased our current renovator, I got to know some of the key people in real estate in our small collection of nearby suburbs who in turn introduced me to more key people. Many champagnes and coffees will be drunk, but being in touch with your local community and people “in the know” will prove invaluable when it comes time to pick your “renovators delight”. Auctions are not always the way to go so once you plant some roots and prove to be serious about your plans, opportunities will quickly present themselves.
- Financial Feasibility of the Project – Once you’ve secured yourself a gem, you need to forecast what the renovation is going to cost you… or better yet, how much it should cost you. You may not easily be able to come up with these figures on your own so seek the advice of someone in the know. You need to put your grown up hat on here and think about this element like any other business decision. Be smart with where you spend your money. If it’s not broke, don’t fix it!
Read tips 4 & 5 of ‘Renovating for Profit’ here.
Love this article? Then head on over and check out the new ID Studio by Porter Davis World of Style.