Renovation success largely about attitude to risk: Patrick Bright

Every property has a different level of risk and potential profit, and this can be the make-or-break of many investors' renovation strategies, according to author of The Insider's Guide to Renovating for Profit, Patrick Bright.

Renovators must ensure they're purchasing the right type of property to match their risk profile, urged Bright.

“This is important because while renovators want to maximise the return on the money they invest, they also want to be able to sleep at night," he said.

“In general apartments are low-risk because they're cheaper to buy and there's less renovating to do, which means less room for error."

However, he said, the risk and potential profit increases if renovators choose to move internal walls.

“Freestanding houses, semi-detached houses and terraces have higher risk which increases if there are added complexities such as Development Applications," he said.

With this in mind, investors will want to undertake a personal risk analysis before embarking on a renovation.

Considering how comfortable you are with losing money or having an outcome that doesn't match your expectations will put you in good stead if something doesn't stack up in the long run.

Both risk-averse and risk-taking investors should:

- Undertake extensive research

- Liaise with successful investors

- Work through steps methodically

- Consider appointing experts, such as a project manager, to advise