Greville Pabst says research is the key to avoiding overcapitalisation.
“Look at the market you’re in, the median house price and what renovated places are selling for. Ask ‘am I going to get this money back?’ There are plenty of examples of people doing massive renovations in outer suburbs and never getting that money back.”
“For anyone looking at a house, it’s the first impression, the façade that matters and the feel you get when you first inspect the property. Creating that emotional connection is vital,” he says.
Pabst says while investors may look for slightly different things than regular buyers – such as lower maintenance requirements and more bedrooms to maximise profit – they ultimately need to rent the property, so many of the same rules apply.
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