Your Property Success with renovation
The book is packed with experiences, including things to watch
The trident strategy that means you make money (or at least don't
lose money) because three prongs rather than one give you a better
- buy a property below its market value (which means you have to
do a lot of research to know the market value).
buy in an area experiencing above-average capital growth
- know what the median house in the area looks like (age, land
size, #bedrooms, bathrooms, cars spaces etc,
- know what the average renter and buyer in the area looks
like (salary, #kids, family size, age, transport they use,
whether they rent or own, education). You may be targeting a
rental, but have a sale as a fall-back.
- Don't want too many rentals in your area.
- what are average (range) of sale and rental prices
add value through a planned renovation, on budget and on time
- read council web sites and other information for what they
are planning for, also state government plans for areas
The book has checklists for all of these.
- get permission to get quotes on building before settlement
so you can start work immediately
- understand the cost of delays on your cashflow (interest
- talk to the contractors and find out realistically when
things will happen to avoid place not being ready when a
subsequent tradie comes
- buy property below the median price for the area and
renovate to value just above median
- does local council allow multi-dwelling, sub-division,
Also understand your finances, your good and bad debt. Understand
opportunity costs, e.g. mortgage insurance may allow you to buy
sooner and make profit sooner.
risk = probability x impact (actually risk = liklihood +
Always have a plan B.