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Renovation expert’s five rules to follow to avoid buying a property that won’t make you a profit

Renovation expert Cherie Barber has revealed the five golden rules to follow when buying a house – and how to ensure you make a profit when you sell.

The TV expert and brains behind Renovating for Profit said a disastrous purchase decision could wipe out any chance of a profit down the line.

‘Let’s face it, buying a property is one of the biggest investments you’re going to make, so it always amazes me when I hear about the spectacular purchase blunders some people make,’ Cherie wrote on her blog.

She shared the five golden rules to follow to make sure you make a good buy.

Renovation expert Cherie Barber has revealed the five golden rules to follow when buying a house – and how to ensure you make a profit when you sell 

Cherie (pictured) said she still comes across people who put more research into buying a TV than they do a property worth hundreds of thousands of dollars

Cherie (pictured) said she still comes across people who put more research into buying a TV than they do a property worth hundreds of thousands of dollars

1. Do every single possible due diligence check

While you might realise that due diligence is an important part of buying a home, Cherie said she still comes across people who put more research into buying a TV than they do a property worth hundreds of thousands of dollars.

‘The single biggest mistake you can make is to overpay on a property you intend to renovate,’ she said.

When doing your homework, Cherie advises you think about the most promising suburbs to buy in, have a ‘good handle’ on prices within that suburb and basically become a real estate expert within your chosen geographical area. 

‘The more thorough your research, the more likely you’ll pick a winner,’ she said.

Get a building report done, and then another one to correspond with it (pictured) as you don't want to be out of pocket later

Get a building report done, and then another one to correspond with it (pictured) as you don’t want to be out of pocket later

2. Get multiple building reports

Scrimping on building reports is a situation Cherie sees all too regularly.

But she said you should never do this, as you’ll later end up paying if a property has any defects and you want to make a profit.

‘It may feel like you’re frittering away money on needless building inspections, but discovering there’s asbestos in the eaves, or termites eating out the foundations, or a rotting roof that needs replacing… that’s information that’s going to pay for itself in spades,’ Cherie said.

Get a building report done, and then another one to correspond with it.

Once you own a property, you will only inherit all of its problems.

3. Account for the true cost of repairs

Once you’ve had your multiple building reports done, Cherie said it’s vital to know the true cost of any repairs you’re going to have to make. 

‘For any astute investor, renovator or developer, it’s all about accurately accounting for the work that needs doing and then working out if there’s enough profit in the deal to go ahead,’ the expert explained.

If you’ve factored in the fact that the roof or a bathroom needs repairing and you know roughly how much it is going to cost, then you are prepared – and won’t get caught out later when it’s time to sell.

Once you know what renovations need to happen, then you need to be confident that you can get them done - this is where planning laws come into place

Once you know what renovations need to happen, then you need to be confident that you can get them done – this is where planning laws come into place

Sometimes, these rules even change within pockets of the suburb - such as when there is a heritage pocket that includes restrictions

Sometimes, these rules even change within pockets of the suburb – such as when there is a heritage pocket that includes restrictions

4. Ensure you can do the renovations 

Once you know what renovations need to happen, then you need to be confident that you can get them done.

This is where planning laws come into place.

Cherie highlighted that these laws differ from state to state and council to council.

Sometimes, they even change within pockets of the suburb – such as when there is a heritage pocket that includes restrictions. 

Check the planning laws and find out what renovations you are actually allowed to carry out. 

'Googling or idle chatting to people in the street could turn up vital information you won't get through the usual formal channels,' Cherie said

‘Googling or idle chatting to people in the street could turn up vital information you won’t get through the usual formal channels,’ Cherie said

5. Go the extra mile

Last but not least, Cherie said it really does pay to go the extra mile. 

‘Googling or idle chatting to people in the street could turn up vital information you won’t get through the usual formal channels,’ Cherie said. 

For instance, they may have access to some knowledge that you just don’t know about.

She said that getting hold of insider information can be the difference between a good purchase and a bad buy.

Read more at DailyMail.co.uk


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