I prefer Buy, Renovate & Hold over traditional Buy and Hold.
When you are buying a property that’s in a good presentable condition, typically it’s going to be on market and you’re probably going to have to pay market value or more because you’ve got other buyers to compete with.
When it comes to properties that are run down & require renovation, there will be more opportunity to buy houses that are under market value because they are less desired.
Your objective with this strategy is to create instant equity because:
1. You have bought under market value
2. You’re getting an uplift in value through the renovation
I prefer this strategy because you are able to fast track your portfolio because you are using the equity you have manufactured to move onto your next deal faster because you are not having to wait for the property to grow in value.
