So, you just visited a mortgage broker and got a home loan for a renovation property in Baldivis. Since Baldivis is still a “hot suburb,” you know your reno property is a “can’t miss.” But is it really a “can’t miss property?” Here are five things you must learn about any reno property before you buy it.
How Much Will it Cost to Fix?
This is crucial. If you do this right, you can make a lot of money. If you don’t, you can work hard and barely break even. Worse yet, you could even lose money. Whether you do your own renovation work, have your own crew or pay a commercial firm to do it, you can’t afford to invest in a renovation home without knowing how much it will cost to fix.
Always do the numbers and only buy when a profit is assured.
Are There Major Buyer Objections?
Usually, major objections end up being deal-breakers. Here are three at the top of the list: next to a railway line, on a main road or a home that is lower than the street. It will always be an “uphill” battle to sell a home with a major buyer objection beyond your control. Let someone else take chances. You are in it to make money.
Room for Improvement
Will cosmetic changes raise the price? Are there room for structural upgrades that will help you turn a profit? If renovation won’t add significant value to the property, don’t buy it.
Do Your Research
We suggest becoming an expert in one neighbourhood or market first. You must be able to both buy low and sell high. You want a reasonably priced property in an area that is poised for capital growth. Nothing else will do.
If you want to become a professional investor, treat it like a profession. Branch into other neighbourhoods and learn everything you can.
Call Smartline Rockingham: (08) 9527 1800.