What do you do when house prices are relatively flat and the time honoured strategy of buying and holding real estate no longer assures rapid gains?
Well it appears that investors both in New Zealand and Australia are flocking to buy homes that need much more than just cosmetic renovation.
Despite a strong lift in confidence, relatively soft market conditions mean that more value needs to be added to properties by investors looking for fast capital gains.
So, properties that have suffered the effects of flood damage, fire, storms or cyclones are now suddenly much more popular. However, they’re not for the faint hearted or inexperienced – strong organisational and budgeting skills are critical.
All manner of unexpected challenges can arise when renovating ‘disaster homes’ and costs can quickly blow the budget.
First National Real Estate recommends investors have a builder and architect inspect any property they are considering before buying. This will assure a clearer understanding of the scope of works required, the likely budget that will be required, and, most importantly, how long the restoration/renovation process may take.