There are basically two types of renovation strategies: Cosmetic and In-depth renovations. A popular type of renovation which you find on most TV renovation programmes is cosmetic renovations. Simply put, a slightly neglected property is purchased, given a coat of new paint often updating colour schemes, a garden makeover and any other simple inexpensive renovations. The property is then put on the market at a higher price. If done well, the new-look property can provide significant profit in a reasonably short time, often as little as a few weeks. Once completed, the renovators then move on to the next property and repeat the process.

Although this can lead to significant profit, PPBA highly advises that significant due diligence and research should be conducted into renovation procedures well prior to purchasing any such property. There are many pitfalls in a renovation that, if not handled well, can lead to monetary loss.

Negative Gearing

Passive Property Development