LET THE BLOCK BE YOUR GUIDE ON HOW BUY & SELL WORKS
- Written by Melanie Toye, April 13, 2014
Are you looking into buying, renovating & selling property?
Some suggest not only can it give you faster results in profit gains. But also, instead of renting out a property and taking on the risk to paying truck loads in property damages. This might be a more efficient way to run your property portfolio.
Here are the top tips found by watching The Block. After 10 weeks of renovating, each couple received more than $500,000 each for their renovations. Not including the amount of profit the network itself would have made.
Take a moment to think about receiving $500,000 after 10 weeks of work. That reward in itself could pay in full or at least contribute to a very large chunk of one's mortgage.
Tips to buying, renovating & selling a property
When looking to buy a property to renovate and resell. It really does need to be in a great location.
- Create a theme for the house.
- Be sure the style, layout and feel hits the mark of your ideal buyer and suits the area you live in. (i.e. installing outdoor showers in an area which rains more than 200 days in a year, may be put to better use for something else).
- Renovate for the buyer's taste and not your own. In the 2013 The Block Sky High TV Episodes, contestants Matt & Kim had an artist create a massive piece of artwork showcasing skulls. As time went by, they realised they were taking out a massive amount of the buyers market due to their own tailored tastes. In the end, they opted for something more suitable.
- Look after your tradies, but do not let them walk over you. You have a timeframe and you want it done by that date. Be very clear about this. Yet do know, holds up will occur. But if they have another client who is more demanding than you, they will take care of that client first.
Time to sell:
When it comes time to sell, put as much advertising as you can to gather as many interested buyers as possible. This is especially true if going to auction. Which brings me to my next point. Find a very good auctioneer. Go to their auctions and see how they keep the auction moving. When it comes to selling, you need to know the market. Knowing when the market is on the rise, is a great eye to have. You want to sell near the peak. Just do not leave it too late. As the market will have to fall at some point.
If you have never done this before, but want to give it a try. Start small and have a longer timeframe for completion. Instead of major construction work, you might paint, redo the kitchen and bathrooms etc. You can even hire furniture from some major retailers, just for sale day. That way you can dress it up, without a huge budget.
Pending on the type of renovations you do. You know your budget from day one. Put aside 10% for unexpected costs. Renovations can be as little as $1,000 and this small investment could see the property value rise an extra $9,000. Renovating, that is done smart and resold at the right time, is one way to take on the property market.
Last words of wisdom
Be savvy in how you dress up the house and spend money on quality workmanship. Remember the buyers taste and you are on the path to selling your renovated property.
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