Finding Properties to Renovate

Do you like to renovate?

There are some people who love to find properties that they can do up, add value to and rent out, or maybe even flip. But sometimes it can be a little tricky to find the right kid of properties to invest in. Especially if you head further and further out from the CBD. This is  because you can often buy a new house and land for about the same price as decent house closer to the CBD.

So some things that will help you track down the right property to renovate. 

Ownership

You're likely to find the good places in an area where there is an owner-occupier percentage of 20% or higher. Looking for these areas will give you options. If you decide after you have renovated the property, that you would rather sell than rent out, then you are likely to find a buyer in these established neighborhoods. If you decide to rent out your property - especially if the property is a good one for families -  you will find that it will be easier to rent out too.  

How long Has it Been on the Market?

Look for areas where the average house stays on the market for under 75 days. This will show you the the market is lively, the area is appealing and of course if you want to sell it, then you will feel better knowing that it won't stay around too long. On the other hand it also shows it's a desirable neighborhood to live in if you are going to rent it out.

Sales History

Look at the market trends and look at suburbs where there have been at least 100 properties sold over the past 12 months. Again this shows you how lively the area is. If only 1 or 2 have sold then yes competition will be low, but how many people want to move into the area? This will impact how easy it is to rent out, or how easy it it is to sell again.

So if you are looking for those great properties that you can renovate and rent out, then you need to do some homework. You need to get your head around the price of properties that are renovated, as well as un-renovated properties. Then you can make the call on which property would work for you.