If you’ve never had any problems with banks or believe that if you always pay your mortgages, you will be ok, don’t be so sure. I know many investors whose relationships with their lenders suddenly turned sour even though they had strong cashflow and had not missed any mortgage payments. Some were shocked to learn that their mortgages could be called in at any time even though they had long term fixed rate agreements!
Buying and selling your first property renovation can be a real adventure! It’s a crash course that can be an expensive lesson if done wrong, even for people experienced in buying and holding investment properties. Unless the house is already in pretty good condition, forget the idea of just spending a few thousand dollars and “flicking it on”. Unless the property market is already very hot, this just isn’t an option! You may find that after purchasing a property and “getting stuck in”, essential work will inflate costs. This is why it’s so important to make sure that there is plenty of fat in any buy and sell property.