{"id":51275,"date":"2024-01-22T11:30:00","date_gmt":"2024-01-22T00:30:00","guid":{"rendered":"http:\/\/propertyupdate.com.au\/?p=51275"},"modified":"2024-01-16T22:21:45","modified_gmt":"2024-01-16T11:21:45","slug":"6-steps-property-investors-maximise-renovation-rewards","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/6-steps-property-investors-maximise-renovation-rewards\/","title":{"rendered":"6 steps for property investors to maximise renovation rewards"},"content":{"rendered":"

Buy, renovate and hold is one of my favourite property investment strategies.<\/p>\n

I enjoy taking a dwelling that\u2019s been a bit neglected and breathing new life into it, making it into a home my tenants will love and want to care for more importantly, it\u2019s a great way of manufacturing equity for my property investment portfolio.<\/p>\n

This strategy requires a lot of planning when it comes to successful execution, but over the last decade, numerous prime-time television shows have glorified the idea of buying a derelict hovel, throwing tens of thousands of dollars at it and selling for a tidy profit.<\/p>\n

Making it all seem terribly easy and glamorous.<\/p>\n

\"Renovation\"<\/p>\n

But the thing with property is this:<\/p>\n

The way you make money out of property is not<\/b> by buying, renovating and flipping<\/a>.<\/p>\n

In fact, after stamp duty, interest, holding costs, selling commission and tax there is rarely any profit in this strategy.<\/p>\n

On the other hand, buying, renovating, refinance and holding for the long term is a time-tested investment strategy that works.<\/p>\n

Why dispose of something you\u2019ve (often literally) put so much blood, sweat and tears into \u2013 only to sacrifice profits to selling costs and possibly CGT - when you can hold onto it and use the power of time and leverage to realise its maximum wealth accumulation potential?<\/p>\n

If you renovate and retain property you stand to gain so much more, with the potential to:<\/p>\n