Images are all from https://www.kyalandkara.com/
Almost daily, I hear what people interested in renovating get told by either the negative news commentary or friends and family. They take on the media’s bias or the blindspots and inexperience from their inner circle. Their doubt then gives them an excuse not to go ahead.
Today, I wanted to share the top 3 myths about renovation, what is true, what isn’t and why it’s healthy to challenge other people’s ideas or fears about renovating.
Myth #1: Capital Gains Tax Kills Profit
When I post before and after photos of properties, highlighting the amount spent on the renovation and how much it sold for, I receive comments about capital gains killing profits.
Irrespective of whether you make 50k or 150k in profit from a renovation, it is not a tax-free exercise. Many of the financial activities we almost take for granted, such as shares or crypto, attract a tax. It’s okay to pay tax; what makes it acceptable is to set up a well-structured way to minimize tax legally.
An accountant should be the first point of contact when you are about to renovate. Getting qualified financial advice gives you a straightforward way to set up and navigate tax, so you don’t give it all to the ATO.
It is essential to see an accountant. Knowing your numbers and working within taxation guidelines will instill more confidence as you continue your renovation journey.
Myth #2: I Need a Partner / Spouse to Start Renovating
Many of the capable people in our group are single women or men of different ages; divorced, and they can still renovate successfully. Others think they can’t do a renovation without the involvement of a partner or spouse.
Renovation is an equal opportunity sport; reaching out to people means you don’t have to DIY and slow yourself down. Being resourceful, calling someone in when needed, and communicating with your network will keep the momentum going.
Myth #3: Renovating is Exhausting
So many people associate renovating with being tired. Ladies often speak to their partners and say they want to renovate, and their partner suddenly gets a picture in their minds of how difficult and time-consuming it will be. It is one of the most common mental hurdles I hear.
Firstly, the partner does not have to participate in the renovation at all. Secondly, we use strategy and not energy. It is okay to be a lazy renovator. Bringing in tradespeople or capable friends to do the tasks you don’t like is efficient.
Renovating does not have to be exhausting.
With a bit of planning, you can replace energy with strategy and make progress. Knowing whom to ask for assistance when needed makes all the difference.
Renovating can create wealth for people; if this is speaking to you, know that you can succeed by being strategic, structured appropriately, and clear on where you are heading. Follow your intuition and take your cues about success from the ordinary and capable people renovating because they believed they could.
You decide what is possible and what to believe about becoming a renovator.
You can listen to our latest podcast episode below:
This blog was written by the RARE team
Team RARE are passionate about renovations, interiors and
sharing our favourite DIY tips and tricks with our community.
Leave a Reply