Can you focus on renovating to build wealth during the pandemic? Have you been thinking about how to build wealth with renovations? Bernadette Janson shares her powerful strategic advice on how to create your own wealth creation plan with renovating.
Is the Pandemic the Right Time to Build Wealth with Renovations?
Now is the time to grab the opportunity to build your wealth. Don’t ignore this advice if you’re planning to renovate for profit in 2021.I encourage you not to pass on the opportunity created by the Covid 19 pandemic to build wealth through renovation.
We are currently living in interesting times, as there is a shift in wealth and property ownership as a result of the pandemic. This has created a brilliant opportunity to follow your passion and build wealth.
Renovating to build wealth… Focus on short-term or long-term?
I am the perfect example of someone who spent nearly 20 years renovating when I realised I was approaching retirement age and was not adequately prepared because I had been following the time-tested model of:
Buying → Renovating → Selling
As a result I was giving the majority of my profit away because in essence: ‘if you are selling your projects, you’re giving away the golden goose’
Long-term wealth-building comes when you renovate to hold. And I actually found this out the hard way.
People choose to build wealth through renovation for a number of reasons, including:
- Improving their wealth status
- Replacing their current income
- Secure their retirement income
However, in choosing to build wealth through renovations we often get blindsided by renovating to sell by flipping, which is the process of purchasing a property and reselling it for profit. People are frequently driven to flip their properties because of the joy and adrenaline they experience while working on such projects. They enjoy the creative process of putting together the tiles, the colours, the style and the finishes. More importantly, they are excited about the idea of working on a project which will be sold in order for them to earn more money.
Plan your renovation strategies for the long term
Anyone looking to build wealth with renovation should follow this advice:
1. Succeeding in wealth and buying property is all about timing
This is especially true for people planning for retirement. Because we are in the midst of a pandemic, the effects of which will cause significant changes in property ownership, now is the time to make a big change and build wealth with renovation by renovating to hold property.
‘There is no better time than now to take advantage of this lifetime event.’
2. Do not renovate to sell by flipping because long-term wealth building comes when you renovate to hold. Use this strategy:
Buy → Renovate →Hold
The downside of renovating to sell is that you give the majority of your profit away. You make profit when you sell the property but the reality is the actual profit happens much further down the track as the property appreciates in value.
So if you are interested in knowing more about how you can do that, I’ve included the link to a checklist for you to assess whether you are actually in the position to be able to take advantage of the incredible shift in wealth that’s going to be happening in the short and medium term.