The First Home Buyers Show Episode 8 THE SPEEDY RECAP! – Renovation Strategy

All right guys, well guess what, it is time for my speedy summary. (bright music) [Announcer] It’s The First Home.

All right guys, well guess what, it is time for my speedy summary. (bright music) [Announcer] It’s The
First Home Buyers Show, where first home buyers go
to watch their wealth grow. And here’s your host, Jane Slack-Smith. (bright music) So, if you’re a first home buyer, and you’re looking at adding
value to your property, then you can do that through renovation. It is my secret, sneaky, sixth step in the financial freedom framework. So, we talk about the five
steps, this is the sixth step. Once you have slammed that property, whilst your living in that property, you can renovate it at
a time that suits you, when you get the money to do it, you don’t have to do it all at
once, to create extra value. It is like having your
own vending machine. For every dollar you put in,
with a strategic renovation, you should be getting $2 out. So, what is a strategic renovation? Well, a strategic renovation can only be done on old
properties, not new. So, buying new actually
takes this entire strategy off the table for you. Now, I talk about my Trid3nt Strategy, three ways of making money. We’ve talked about how to negotiate to make money when you buy. We’ve talked about how to
be in a capital growth area, so your property is making you money for years in the future. And now, we’re talking
about supersizing that and doing a renovation that strategically, can add $2, at least, for
every $1 that you spend. And if you decide to rent that
property out in the future, create a higher rental income for you, so the gap between your
mortgage repayment and cost and the rent you get is even smaller. So, one of the things
that people get wrong, well they buy in the wrong suburb. They don’t understand pricing disparity, the difference between the renovated and the unrenovated costs
of properties in the suburb. So, you have to be in
the right suburb first. That’s why it’s important,
in the beginning, to see it, and understand your strategy
before you even begin. Then what you need to
do, is have a property that has the capacity to add value. Not every property that
has the need for renovation deserves a renovation. So, understanding if there’s capacity is by looking at,, or even using RP Data,
that allows you to be able to look at the sold properties, and look at what the renovated
properties are selling for, and unrenovated, and working
out, using trades quotes, and we’ve talked about at least four, so you’re not ripped off,
to be able to understand, is there capacity to make some money? So, you need to understand
what the buying price is, what the renovation cost is,
what the profit you wanna make, and what your holding cost
is, and if that, in total, is actually higher than what
the renovated properties are selling for in the suburb, or the renovated comparable
properties in the suburb are, it’s time to walk away, ’cause you’re not gonna
make money out of it. So, renovation is a super sneaky strategy to allow you to make money in any market. So, we talked about also, there’s some room-by-room tips
that I wanna share with you. Check out the link to be able to see the, all those tips and tricks. But we talked about how to repaint, we shared a few other tips, get in there and watch the entire episode. It is fantastic, and that is
it for the super strategy. So, without any further ado,
it is time to say goodbye, and we’re going to go
to the closing credits. (bright music) [Announcer] And that’s it for this week’s First Home Buyers Show, and
Jane will be back next time with more tips, tricks,
resources and interviews. See you then! (bright music)

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