In the ongoing housing crisis, the affordability of a home for every Australian comes into question. There is a need for people to look into investments to stay safe and avoid the rising costs. Although it is counterintuitive, it’s reasonable to purchase a home and renovate it for a profit. Whether you decide to rent it out or sell the property as a whole, it’s still going to be a worthy investment.
What’s more is that when you purchase a home, you can take advantage of the HomeBuilder grant to help increase its value. It doesn’t have to be a complete renovation; it can just be an upgrade of the facilities or an update on the home’s interior design. Either way, your input will increase the property’s value, and your input will return a profit.
Here are some ways you can get started on this new business venture:
Location, Location, Location
You can begin by picking out a good location for your property. By looking at homes for sale, you’ll also have an idea of how much these properties will cost. Another thing is that if you scout these properties online, you’ll be able to reduce your initial cost by not having to travel to the location. You’ll also be able to save some time for the same reason.
Updated Interior Design
If you have an eye for a luxurious interior design and you’re looking for a place to implement it, where’s a better location than your next property? When you decide to update the interior design yourself, you’ll be able to cut costs drastically, especially if you’re frugal with staging or finding materials. Doing it all by yourself means that you’ll have a vigilant eye on the budget.
Do-It-Yourself Demolition
If there are renovations to be made with demolition before the builders arriving, it will be a lot cheaper if you do it yourself. That is only recommended if you’ve actually got experience with demolition and you have some safety gear you can wear to protect yourself. Otherwise, if you’ve got no prior experience with demolition, it would be best to hire a professional instead. That way, you can be sure that the house will still stand when the builders arrive.
Be Your Own Agent/Property Manager
One of the ways you can cost on this venture is by wearing a few other hats. You don’t need to have a license to sell your own property. If you’re going to rent it out, taking some time over the weekends to manage it can reduce the costs for you and the people leasing out the property. Being your own agent when you sell the property also means that you can monitor the staging costs or even find a way to conduct the staging for free. The overall sale price will decrease because there won’t be an agent to pay when the deal is being made only between you and the buyer.
Forget About Auctioneers
Buying and selling a house through an auction is a tired tradition. It will only increase the capital you’ll need to buy the house as well as the price you’ll have to sell the house at because the auctioneer will be charging a price for their service. At the same time, auctions don’t always mean that a deal will work out. Sometimes, they fall through because the reserve price was not reached, or the buyer can’t exactly pay 10% of their bid. They might’ve placed their bids out of pure adrenaline.
It’s important to consider how deals that don’t work out can add to your cost as the property owner. The fact that deals fall through can also make you lose buyers that were actually interested because they lost the bid. Some buyers are also put off by auctions because it doesn’t allow them to think or negotiate with you on your terms for the house.
Even though it can be an overwhelming project to take on, it will all be worth it in the end. Considering how people are frequently buying properties nowadays due to low-interest rates or how more people need to rent out a home, you’re still going to be able to make a profit. It’s up to your capabilities as a future real estate investor to maximize that profit.
