There’s a tried and tested strategy for making money in the real estate industry. You buy property, you renovate it, and then you sell it at a higher price. But is this really something of a success story given by real estate agents who made it big, or is it no more than a myth?
Of course, when an agent tells you that he bought a property for $300,000, renovated it, and sold it for $450,000 12 months later, you’re more inclined to believe it and think that renovation is something that can be done to improve the value of your home.
There are some factors, or rather circumstances, that can make or break any property investment that follow the aforementioned model (buy, renovate, sell).
Andrew Wilson pitches in with news about the mad rush for land in the suburbs. This can mean further elbowing out of the first home buyers. Over the year 2014, Sydney’s median residential land price shot up by 19.7%. This is way ahead of the numbers registered by Melbourne and Brisbane.
Investing in property can be lucrative, especially when done right. But it’s not as easy as one might think. Some people do something along the lines of buying, renovating, and then selling the property. There are also those that buy property and have other people rent out the property. These properties range from a home in the suburb to a commercial space downtown.
