I’m interested in the idea of buying undervalued properties at the base-end of the market downturn (ie. those that have been grossly underpriced due to bank defaults, greatest fool theory-dropping prices to offload debt and other desperate vendors) allowing me to buy property with equity already in it, and then compounding that immediate capital three-fold. Firstly, by buying in high growth micro-boom markets like Steve alludes to in his 2nd book, I can compound equity further by negotiating a long six month settlement with early access negotiated for renovations. Thirdly, cosmetically renovate an aesthetically unappealing but structurally sound property by adding perceived value to a particular demographic of speculative investors with low (actual cost) cosmetic value adding. Can anyone tell me beyond the arbitrary nature of most renovation work, what are the most lucrative low-cost, high perceived value renovations they have found to appeal to a low-mid class demographic. Also, If you’ve read Michael Gerber’s works, you’d be familiar with the term *psychographics*, i’m also curious as to trends in psychographics within this demographic that could lead me to more profitable and scientific value adds.
Hi Yidn,
Love your posts, you obviously are very well read.We have done a few renovations, where we compare the “quality” to what the market in the area is demanding. Ie if the house is in an area where there are alot of generation xers and their young families, we include easy care polished floors, built ins, average kitchens and secure backyards.
For retired peopel, we want compact gardens, BATHS (old people love them) lots of security.
Young proffessional couples (DINKS) generally like top european appliances, jag kitchens and expensive houses in high income areas.
You get the picture.
You can research your market through demographic reports on online services ie RP-data.
Surrounding houses give lots of clues. ie dont waste money on an expensive remote control fence if no other house has it.
We also stick to only cosmetic renos, ie kitchens bathrooms and floors, have never attempted to repair salt damp or termite damage, these can get too expensive.
The last thing I would recomend, is LEVERAGE YOUR TIME. Why waste your time doing the actual reno when it could be better spent looking for the next house to buy.
Hire tradespeople to do it all.
All the best!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582Dr X
Thanks so much for your experienced advice
i’m learning everydaywarm regards,
Yidnthanks also for your LO advice. That’s one area I hope to gain more knowledge and experience on in next year.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582
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