Buying a property with renovation potential makes good sense.

It’s a way of increasing capital growth at our current stage of the property cycle when we can’t really expect the same strong capital growth that we have been seeing over the last few years.

But unless you have the experience and the skills don’t be tempted to do a D.I.Y renovation.

Here are some thoughts on the good and Bad of DIY renovating.

If you’re willing to do the work, you can save some serious money, but only if you have the skills and knowledge to achieve the right outcome, otherwise it could cost you much more than you bargained for.
You can save on the builder’s margin and you can save shopping around for materials. The trade-off is the time you spend doing this


A DIY project willtake longerthan you planned for in most cases.

Yourcosts are likely to blow out,but you can avoid this somewhat with good planning

You’ll need more cash.
Banks will often lend 80% of the cost of a fixed price renovation contract provided by a builder, but won’t lend you the money to undertake a DIY renovation.

You don’tknow what you don’t know – maybe it’s worth you starting off with some simple DIY jobs like painting.


Renovating your investment property is a great way to:

Increase its value,

Make it more appealing to a wider range of tenants,(shorter vacancy periods)

Increase the rent you can get for the property, and

Increase your depreciation allowances.

However, don’t take on more than you can handle. If you have never done any D.I.Y work before, start off slow (small jobs) and build from there.

RealRenta.com.au – Just A Better Way to Manage Your Rental Property
Jason Gwerder
Friday, 24 June 2016

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