One of the age-old ideas about buying investment property is that you can simply purchase a piece of real estate that needs some work, then quickly renovate it and sell it on for a neat profit. However, when you look into the modern day market, you may be wondering whether this is as profitable as simply purchasing a new home and waiting for the returns to grow – or simply keeping it as a source of rental income.
Naturally, when it comes to purchasing investment real estate in the Surfers Paradise – regardless of whether you intend to renovate – the usual criteria still apply. This means investigating the local community, understanding the local amenities, keeping an eye out for growth areas and looking into the median prices and sales activity of the area.
The great thing about purchasing a property with the intention of renovating is that you can lower your standards a little. When it comes to searching the property market, you're no longer looking for the cream of the crop, but instead something you can turn into a bestseller.
But what should you keep in mind when buying for renovation? Here are some of the common causes of headaches when pursuing this avenue of investment.
After purchasing your renovation investment, you may be feeling the financial pinch in your wallet. If you're looking to maximise the bang for your buck, it's important to prioritise certain renovations over others. This way you can ensure you gain the most satisfactory returns on your original investment with ease.
For example, consider undertaking renovations in the kitchen and bathroom first and foremost. These rooms garner a lot of attention from buyers – and for good reason. A lot of the time people spend in their homes is in the kitchen, which today is as much a location for impromptu social gatherings as it is for preparing meals.
Along the same lines, the bathroom sees attention from every member of a household multiple times a day. So ensuring these two rooms are in a good state is a great place to start if your funds are limited and you want to maximise your investment returns.
Another thing to keep in mind is the general shift towards sustainable living that people are embracing nationwide. Making your renovation investment property a cleaner, greener space doesn't have to be a massive, expensive undertaking – something as simple as installing insulation or replacing the light fixtures with more energy-efficient options could do wonders for helping sell your Surfers Paradise property.
Of course, installing fixtures like a sustainable water system or solar power could offer something new and chic that other homes doesn't, expanding your potential market reach and helping boost the number of possible buyer coming through the home during open inspection.
The first thing people see when they come to a new home for an open inspection is the front lawn. Many people get so caught up in renovating the interior of the home that they forget to take the time to reinvent the exterior.
Something as simple as replacing the fence, repainting the home and mowing the lawns can go a long way. Furthermore, the backyard is prime real estate for installing new things like bird baths, swimming pools and deck in order to make the most of the space while also helping increase the value of the home.
These are just some of the things to consider in the long term. Buying a renovation investment is a great way to secure a property for a lower price and add value yourself in order to earn a profit.