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Sure, we all enjoy watching those renovation shows that keep popping up – The Block, Top Design, and the new kid on the block, The Renovators. Celebrities such as Scott Cam and Jamie Durie guide us through renovations week after week and we’re glued to the set.
Where’s the "wow" factor?
The TV shows focus on the emotions and challenges of participants and the final project always has a "wow" factor. But have you noticed the lack of "wow" factor when it comes to turning profits? It seems there’s more blood, sweat, and tears than dollars by the end of the show.
As much as we love watching these shows, potential investors shouldn’t get discouraged by the lack of financial results seen on TV. There are still plenty of good buys and opportunities for property investors to renovate and make a profit if they educate themselves first.
Show me the money! 
Investors should take to heart the importance of buying the right property – in the right place, for the right price, with the right renovation rules – to make sure they make a pretty profit, as well as create a pretty house. Sometimes women make the mistake of getting emotional about a property and start thinking everything they do will add value instead of crunching the numbers first to make sure the project is profitable. Why not get a valuation of a property before renovating to make sure you don’t overspend?
In addition, don’t be taken in by the escapism of the not-so-real reality renovation shows where contestants are often rewarded for creative, over-the-top, and at times, expensive ideas. Sometimes it’s the simple and practical renovations that make the most sense. For example, painting, replacing handles on cabinet doors, or cutting back overgrown gardens aren’t glamorous, but give you a lot of bang for your buck.
And remember, while renovation TV shows are entertaining they do not show the practical steps of research and analysis that is needed in order to make a profit. For example, property investors must learn how to choose the right suburb, set a budget, utilize floor space by reconfiguring a layout, what order to complete projects, and how to choose the right trades people.
Keep in mind, unlike renovation shows on TV, the goal of many property investors is not to immediately turn around and sell property, but to hold on to properties as capital investment and to generate income from rent. In this case, renovating properties can be a good idea in this tighter, more profitable rental market as a way to increase the rent and generate more income. In fact, some investors spruce up a property, raise the rent, get a new valuation from the bank, and then borrow against the increased value to fund another property purchase.
Remember, there’s money to be made in any market, but the key is to buy well and renovate sensibly.
Rachel Barnes is a founder of <a target="_blank" title="Property Women" href="https://www.propertywomen.com.au/go/property-observer/">www.propertywomen.com.au</a>, a website for and by women investing in property.
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Reality TV more property entertainment than education

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The statistics are scary. By 2019 it is estimated that women will have on average half the amount of superannuation than men, according to a Queensland report called Focus on Women.
This is an alarming figure for women looking to retire within the next decade. The national trend is to have superannuation, the mandated compulsory employer contribution equivalent to 9% of earnings, as the primary income for individuals in retirement. Because the number of retirees compared with the working population is increasing, the likelihood that the government will be able to afford any sort of reasonable amount of pension is slight. The Australian government has realised this, which explains why it introduced superannuation and are encouraging people to work well beyond 65 years old.
This looming hardship will affect women disproportionately. Why? As the report points out, women on average earn almost $300 less a week than men. In addition, while in the workforce women are more likely to take time off work to raise children or take care of other family members. When you add the fact that women tend to live longer than men, you quickly realise a women’s financial security in retirement is definitely at risk.
So what should a woman do to improve their situation? First of all, women need to change their perception. The report states: “While investing may seem indulgent to many women with dependants, securing a future retirement income is imperative.” This is a statement I wholeheartedly agree with – not only for a woman’s own financial future but for her family’s future as well.
Women, now more than ever, need to begin taking action to build up income-producing assets and one of the best ways to do that is by investing in property. Consider this: if you have $10,000 invested at 7% compounding monthly, in the year 2019 – about eight years from now - you will have about $17,000, giving you a $7,000 gross profit (before tax of course!). However, if you used that same $10,000 and make a 5% deposit on a $200,000 property, which grows in value by 7% per year, after eight years the property will have grown in value to nearly $350,000, giving you a gross profit in the vicinity of $150,000.
You don’t have to be a mathematician to figure out that $150,000 in potential profits from property investing is far preferable to the meagre $7,000 profit you’d make otherwise. These figures don’t even take into consideration that investment properties can generate an income from rent or the tax benefits that can also apply. They also don’t take into consideration that some properties cost you money to hold, or are negatively geared; it is important that you get educated before rushing into purchasing any property.
My partner, John, and I are firm believers in property investing, and we have a portfolio of more than 70 properties across Australia, New Zealand, and the United States. We can attest to the fact that one of the best ways to secure your financial future is by accumulating investment properties and letting the power of compound interest work for you.
Rachel Barnes is a founder of <a href="https://www.propertywomen.com.au/go/property-observer/" title="Property Women" target="_blank">www.propertywomen.com.au</a>, a website for and by women investing in property.
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Rachel Barnes

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