Renovating, extending or doing a knockdown
Purchasing an investment property in a tightly held location where there is evidence of the specific dwelling type being renovated and selling well is a good indicator of demand for now and into the future.
You want to look for evidence showing that you can get a two dollar return on every dollar spent from an investment perspective. This is less relevant for a home, but still, something to consider.
The ability to add value to the property through strategies such as adding a bedroom or living space whilst maintaining the floor plan’s natural flow are usually the most effective methods without over capitalising.
If you choose to purchase a property to renovate, you should strive to ensure the property could be renovated considering the following:
- Limited impact on the structure (bones) of the house to limit expense.
- Maintaining the integrity of the floor plan, so it continues to have a consistent flow between the living spaces, outdoor and bedrooms after any extension.
- A strong presence from the street frontage (that you would not adjust).
David is the Founder and Managing Director of Property Planning Australia, author of ‘How to Succeed with Property to Create your Ideal Lifestyle’, co-author of ‘Property for Life – Using Property to Plan Your Financial Future’, co-host of the ‘Property Planner, Buyer and Professor Podcast’ and a widely-published media commentator. With more than 20 years of experience, David is passionate about educating others to make informed, and ultimately, more lucrative property investment decisions. David established Property Planning Australia in 2004 – with the vision to educate and empower Australians to make successful property, mortgage strategy and money management decisions. Property Planning Australia’s operations have earned acclaim and national industry awards for its unique fusion of property planning, education, money management, mortgage strategy and risk management. All supported by multi award-winning customer service.