When thinking of investing in a house to renovate and potentially sell there is a few things you may want to thing about first.
Do I have the trade, the technical expertise or the money? Or do I have a partner with one of these skills?
- Before setting your sites on a home that needs a lot of work try and have someone come in for an estimate quote on how much it will cost to complete the renovation
- Think about what the buying cost is opposed to the selling cost after the renovation and how much you will get out of your investment.
- Make sure to take note of the taxes, depending on the municipal, provincial, and federal taxation requirements around you, sales sales and transfer tax will apply at differing levels across the country.
- Ask yourself: Can I buy below maket retail value? Is there an increase in demand for the area? What are the rental rates on similar properties?
In most cases this kind of investment is a good idea, but make sure to do your homework first.