Renovating to Build Equity

Renovating to build equity starts here.

I say out with the flipping and in with the equity pull.

Renovating properties is a great way to build up your equity to either build a capital base or build your property portfolio. You don’t have to renovate and sell (known as flipping), you can renovate and pull equity out and then rent the property. By doing this you will also take advantage of any future capital growth the property will gain in the future.

So, what is the most important number when looking to purchase a property for renovation? The end value. Whether you’re looking to sell or to pull out equity, you need to be 100% confident on the end value. Once you have the end value, everything works backwards from there.

“As a guide the renovation budget should be around 10% of the purchase price.” Glenn Newbery

There are lots of things to consider when renovating a property for equity like the cost to hold the property while renovating, the works themselves and the profit/equity gained.

If this sounds like the strategy for you, together we can explore the renovation costs using my handy formulas and years of experience.