A house with or without renovation or how to distinguish a novice investor from a person with experience
This is Igor Svechin.
The saying that repairs cannot be completed, but can only be stopped, is relevant at all times and on all continents.
Imagine you are buying a house, and it turns out that it needs to be renovated.
What will a new investor do?
It is very likely that he will be upset that he will have to allocate additional budget to put the property in order.
What will an investor with experience do?
He will say ok, and allocate an additional budget for repairs.
Do you know what’s the difference?
The fact that the beginner regards the money that will need to be paid for repairs as additional costs.
An experienced investor understands that this is an investment that will cause the property to increase in value.
This means both that it will be possible to return this investment with a plus when selling the house, but also to rent out the property at a higher price.
Incidentally, both novice and experienced investors are lucky to be Penninvest’s clients. We take care of all repairs.
I’ll tell you what it looks like tomorrow.
In the meantime, just think about what is said above: additional costs or investments that increase the value of the object.
The money is the same, but the result and attitude towards them are different.
I won’t even talk about “right” / “wrong”. 😉