Renovations
Property Investing Strategy

Homeowners and investors create equity and generate wealth by improving the value of their Principle Place of Residence (PPR) or investment properties and then refinancing them or selling them.

Keys to make it work:

1. Avoiding overcapitalisation
2. Smart costing plan consistent with exit strategy
3. Maximise sale price or rental yield
4. Good budgeting, feasibility study and planning
5. Good stable of quality tradesman
6. Project management
7. Renovation standards in line with the market

Financial Requirements:

This strategy offers flexibility for investors. Depending on the rate of return required and the funding available, investors might not require a substantial amount of capital to finance the renovation. Budgeting is essential while keeping a margin budgeted for delays and surprises to avoid getting into cash flow troubles.

Time frame and exit strategies:

The time frame to generate returns using this strategy ranges from a few weeks to a few months depending on the level of renovation, expected returns and method chosen.

Investors could either resell the property at a gain, or revalue by refinancing to hold it for future capital gain and immediate cash flow. Full time investors might sell some properties and keep the ones with good rental income.