How To Make Money By Buying Property, Renovating And Selling It

Property is one of the few investment options that has an intrinsic value, is distinctly visible in its physical form and has multiple other uses besides being a store of value. Property also has the distinction of being one of the first big asset purchases made by the common man, since it provides an abode to live in, and with it comes a deep sense of security that there is a roof over one’s head. Hence there is always demand for property, which may see less volatility with smaller spurts and slides than other investment instruments.

How to maximize profits through property purchase and renovation

  • Find the best deals at lowest prices- Profits accrue not merely by selling at high prices, but also by buying at the lowest prices. For this, one needs to have thorough knowledge of the market, what is available, how long the properties have been unsold, and how to get the seller to further reduce prices. Often, distress sales appear, where the seller needs the funds immediately and for this, he is willing to slash the price. All these give the prospective buyer immense bargaining power, especially if he can make a full down payment.
  • Verify the potential of beautifying a dilapidated place- While a rundown place is a good buy, its improvement potential must be scrutinized before buying it. Some such properties are like bottomless pits into which one has to keep pumping in funds to get them to look presentable. This happens in old, poorly maintained structures where walls crumble and all utility layouts like plumbing pipes etc are falling apart. It may be preferable to pay a bit more for a property that is not in such a bad state.
  • Take expert advice- Before buying a property, it may be a good idea to take an estimate and expert advice from a contractor who handles small and big repair and renovation jobs. A surveyor can also be engaged, but his rates are often a needless expense, since better inputs will come from the person who actually sets the property back in form.
  • Finalize jobs, budget and time frame- The most economical way to proceed with renovations after the property has been purchased is to draw a list of jobs to be done, the estimated expense and assigning a budget accordingly, and also keeping a time frame in mind. Time limits are important to prevent budget overruns.
  • Finding the best buyer- Once the renovation is nearing completion, it is best to start spreading word about the property being available for sale. A new construction or renovation looks more appealing than a place that has been ready and lying vacant for some time.

Renovations can be more cosmetic than thorough, but a good finish always appeals more. The effort involved is stupendous, but is more than compensated by the money that is earned after selling it.

For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

Tags: , , , , , , ,

About PropertyTutors

“PropertyTutors Limited believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation found within this publication on the date of this publication. However, no liability is accepted for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation in this publication. Nothing in this publication is, or should be taken as, an offer, invitation or recommendation to buy, sell or retain any investment in or make any deposit with any person. The information contained in this publication is general in nature. It may not be relevant to individual circumstances. Before making any investment, insurance or other financial decisions, you should consult a professional financial adviser. This publication is for the use of persons in New Zealand only. Copyright in this publication is owned by PropertyTutors Limited. You must not reproduce or distribute content from this publication or any part of it without prior permission.”