Buying a Renovated Property is Holding You Back from Growing a Property Portfolio
What smart investors in Wollongong are doing instead
If you’re looking to purchase an investment property in Wollongong or anywhere in Australia, there’s one common trap many investors fall into — buying a fully renovated property with no room to add value.
Sure, it looks appealing and feels like a safe, set-and-forget option. But in most cases, that type of property won't help you build long-term wealth.
Here’s what savvy investors are doing instead.
Don’t Wait for the Market — Create Growth Yourself
Most investors buy and hope the market goes up over time. But the more strategic approach is to manufacture capital growth yourself by purchasing properties with potential.
That potential could come in the form of:
Renovation
Subdivision
Adding a granny flat
Small-scale development
When you buy with the intention to improve or reposition a property, you can create forced capital growth — which builds equity faster and gives you options for your next move.
The Hidden Cost of Renovated Properties
Buying something that’s already been renovated might feel low-risk, but you’re paying a premium for someone else’s work. You’re buying at or near the top of the market value, with little room to grow the property’s worth through improvement.
In a market like Wollongong, where buyer competition and pricing can be high, you want to maximise your returns. That’s much harder to do when the value is already "baked in."
What is Forced Capital Growth?
Forced capital growth is when you actively increase a property’s value through improvements or changes — rather than relying on external market conditions.
Here’s an example:
You purchase a property in Wollongong for $650,000. You spend $35,000 on a cosmetic renovation — kitchen, bathroom, flooring, and street appeal. The property is then revalued at $750,000.
That’s a $65,000 increase in equity (after renovation costs), which you can potentially use to fund your next deposit or reduce your debt — all without waiting for the market to rise.
Buying with Strategy, Not Emotion
This is what separates smart property investors from casual buyers. It’s not about the prettiest house or the easiest option — it’s about buying the right property in the right location, with a clear plan for growth.
As a local Wollongong buyers agent, I help clients identify high-potential suburbs and properties that allow for value-adding strategies. Whether it’s a renovation-ready home or a development site, the goal is always to accelerate portfolio growth and create long-term financial security.
Final Thoughts
If your plan is to build a property portfolio — not just own one property — then it’s time to think beyond surface appeal.
Look for opportunities to add value, create equity, and take control of your investment results. Renovated homes might look great, but in this market it’s the unrenovated ones with potential that could take you further.
💬 Want Help Finding Value-Add Investment Properties in Wollongong?
At Wollongong Property Buyers, we specialise in finding smart investment opportunities — from cosmetic renovations to small-scale developments.
Get in touch for a free discovery call and let’s find a property that works hard for you.