Jane Slack-Smith, the mastermind behind the Ultimate Guide to Renovation, reveals why most renovations fail to make a profit.
Kevin: Earlier this month, on the 3rd of March actually, we treated you to a fantastic webinar with Jane Slack-Smith and some great ideas on renovation. By now, you will have also heard about the Ultimate Guide to Renovation. That’s open right now, but it’s only open for a limited period. I’ll tell you more about that in just a moment.
Joining me once again, the lady behind the program, the mastermind behind this, Jane Slack-Smith. Good day, Jane.
Jane: Hi Kevin.
Kevin: Jane, these free videos that are running right now, tell me about what’s inside these?
Jane: There are four videos in the video series that we put out, and they’re packed full of so much information. The first one for me is what I find so many people make mistakes with is buying the wrong property, so what I’ve done in the first video is actually take people live through a property inspection.
Kevin: We talked about that in that webinar, too. It’s a great way to find out what are the right properties? Now, as we said there are four in the series. They’re available right now. They’re free. It’s called www.FreeRenoVideo.com.au.
A lot of very well intentioned renovators go wrong, Jane. Where do you see them go wrong?
Jane: There are so many things that people can avoid. Really, the number one is probably just missing the facts that they’re renovating the wrong property. You really need to have pricing disparity between the renovated and the unrenovated property.
An example of that, Kevin, is if you were looking at buying a property for $350,000, if the renovated property was worth $380,000, there’s probably not a lot of room there for you to be making a profit. A lot of people see the opportunity with a rundown property and think they can probably fix it up with a lick of paint, where in actual fact, there’s probably not money to be made there.
Kevin: A fine line between adding value and over-capitalizing, which is what you’re saying, isn’t it?
Jane: Absolutely. You can over-capitalize in other areas, as well. There are what I call the no- or low-return items. If you have to go and fix up the plumbing or the electricals, or if there are things that you haven’t identified in your initial checklist, in your inspection, that then are going to cost you money, they’re going to eat into your budget and they’re going to cost you money and maybe not make a profit for you.
Kevin: One of the other things I know you talk about, too, in these free videos is all about getting the right location. That’s another big mistake people make.
Jane: Absolutely. We spend a lot of time in the Ultimate Guide to Renovation looking at suburb due diligence and then actually selecting a suburb, as well. You’re really looking at the right property in the right area that’s right for renovation, and that to me is the key to successful renovation.
We can get into pretty color schemes and strategic renovations and wonderful solutions on innovative kitchen designs, etc., but really renovating the wrong property to start with, you’re never going to make money.
Kevin: Yes. Some of the things you’re going to see inside the free video series are things like how to create a bathroom that looks great, how to make sure that you finish the property off well, and I also love the three most dangerous mistakes most people make when they’re buying a property to renovate.
Jane: Absolutely. We hear this all the time, Kevin, the fact that people get emotional about even their first property investment. They think about the color schemes or the things that they would like to do with the property themselves in their own home, and they make it an emotional buy, and that’s just the number one wrong thing to do when you’re buying a property.
Kevin: If you’re interested in renovation, perhaps you already own an investment property or your own home maybe, or you’d like to start using property to make a profit, now build wealth through that, and you can do that by watching this video series. It’s absolutely free. It’s available for you now, but only for a limited time. The website is www.FreeRenoVideo.com.au.
I have to mention, too, that the Ultimate Guide to Renovation, you can get a lot more information, too, by watching that series of videos, but the entry is open right now?
Jane: Yes, that’s right. The enrolments close on the 26th of March. The reason that we do this is because we want to jump straight in with the content with our students. We hand-hold people through. There are product Facebook groups, there are mastermind groups, there are Q&A group monthly calls with me personally. We’re really dedicated to making this successful for people rather than just leaving them by themselves.
Kevin: You can get all the information you like on that program at www.FreeRenoVideo.com.au. Go to that site, and we’ll also be letting you know, too, as a subscriber to Real Estate Talk how you can get involved. That’s the Ultimate Guide to Renovation.
My guest has been Jane Slack-Smith. Jane, always lovely talking to you.
Jane: Great talking to you, too. Thank you, Kevin.