The 6 big mistakes to avoid when buying property. Here’s mistake #4
Mistake number four is renovating.
I have not to this day met anyone who has made a profit through renovating without being a full-time professional tradesperson. If you’re not a full-time tradesperson, which I’m guessing you aren’t if you’re reading this book, you should not be renovating a property, no matter how glamorous it looks on reality TV.
The actual reality is that you probably work a full day Monday through Friday, so you can only work on the renovation during the evenings and weekends. You don’t have all the right tools or materials, so you go and buy what you need and pay a premium because you’re not getting a tradesperson’s discount. Then you’ll go and do an amateur job because be honest with yourself, you are an amateur.
A lot of people fall into the renovation trap. I did too. You don’t have the time and the skill to do it well and make a return on your time and money investment. I have people say to me that they made $100,000 through renovating but at what cost? How much money did you spend on the renovation? How many man-hours did you put in? What’s left over is how much you actually made. You have to consider how much the property would have gone up in capital growth if you had not done the renovation. Don’t give your renovation the credit if you were going to have capital growth either way.
Rather own the property, do nothing to it and let it make easy money for you – that’s working smart, not hard.
Stay tuned for more daily insights from my book, Wealth Through Property.
Join one of our webinars by CLICKING HERE.