All Topics / Value Adding / Reno strategy – would love some advice
Hi all
I'm looking to buy my first IP soon and in the current climate am thinking a small reno to build some fast equity will be my plan, to enable me to build my portfolio sooner rather than later. I've got 2 questions:
1. To ensure i buy the right property im wondering whether i should invest in some education. Ive seen other posts on the site that "you can get all the education you require for free" BUT if I was to do a course, what would you recommend? Im currently looking at Momentum Wealth and The Property School. I've also just signed up for the Property Women Diamond Membership.
2. When I do find what I think might be a good property how do I work out what my return will be ie. if I was to spend say $5-$15k (on a $350k approx) house, how do I ensure that it adds enough value to the house to give me enough equity to do it again? Say on another $350k house?
Appreciate any advice that comes my way,
thanks
hello Kals,
I'm sorry i can't answer the first question, however i believe you will learn a lot more for free by regularly chatting on these forums.
As for question 2- ideally you should be looking at a ROI of $2 -$3 for every $1 spent.
Different areas will require different things done to the property, as there willbe different class of ppl looking for particular items.We tend to do a lot of high end fitouts and renovations but we do have extensive experience in property presentation as well.
If you are just begining, i would suggest going to as many open houses as you can and speak to the RE as to what they believe will help add value. This is just a start.
good luck
Adrien
Hi Adrien
Thanks for your reply. I like the $2-$3 formula. I'll keep that in mind. I'm also planning to regularly attend opens and inspections and have set up realestate.com.au alerts too.
Kaia
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