Renovate-and-Sell property investor

Buyers pay the sale price, or tenants pay rent if you keep it. Lenders and sometimes co-investors fund the purchase and works.

The gain between your total costs (purchase, stamp duty, renovation, holding and selling costs) and the sale price. Income is lumpy: nothing for months, then one sale.

• Project and budget management
• Negotiating with sellers, agents and trades
• Eye for what buyers want in a local area

• Renovations often run over budget or time, so allow a buffer
• Check which works need council approval and which trades need a state licence; owner-builder rules differ by state
• Tax on profits from buying to sell can differ from holding long term, and GST can apply in some cases: get advice from an accountant
• Interest and holding costs keep running while the property is unsold
• Taking money from outside investors may bring financial services rules, so check with a solicitor first

Startup costs are typically around $150,000 to $600,000, depending on the purchase price, the scale of the renovation and how much is funded by lenders or co-investors. Renovations often run over budget, so allow a buffer.

Monthly revenue is typically around $3,000 to $15,000, depending on the property, renovation quality and whether you sell or rent. Interest and holding costs keep running while a property is unsold.

Check which works need council approval and which trades need a state licence, as owner-builder rules differ by state. Get accountant advice on tax and GST, and check with a solicitor first if taking money from outside investors.