INSIDE RESIDENTIAL PROPERTY #04: The buy-and-renovate property strategy

In this episode of Inside Residential Property, host Liam Garman is joined by Rethink Residential senior buyer's agent James Thompson and investor Daniel to break down the realities of the buy-and-renovate property strategy – including when it works, when it doesn't, and why many investors underestimate the risks involved.

Using Daniel's real investment journey as a case study, the episode explores how manufacturing equity through renovations and granny flats can accelerate portfolio growth – but also why rising construction costs, time commitments, cash flow pressure, and life-stage changes often force investors to reassess their strategy.

Daniel shares how he began investing at a young age, purchasing uninhabitable properties, completing hands-on renovations, and adding significant equity through disciplined budgeting, suburb research and targeted upgrades. The conversation details how equity releases were used to fund granny flat construction and further property acquisitions, before examining how consecutive interest rate rises reshaped cash flow and borrowing capacity.

The episode also addresses common investor mistakes, including overcapitalising on renovations, misunderstanding opportunity cost, and following rigid property plans that fail to adapt to changing markets and personal circumstances. What you'll learn in this episode:

• When a buy-and-renovate property strategy makes sense – and when it doesn't.
• How to assess renovation opportunities using comparable sales and buyer demand.
• Why time, labour, and opportunity cost matter as much as renovation budgets.
• How equity releases and granny flats can support portfolio growth.
• The impact of interest rate rises on renovation-heavy investment strategies.
• When selling property can accelerate progress rather than stall it.
• Why property strategies must evolve with life stages and market conditions.
• The risks behind house and land packages and commission-driven advice.

This episode is essential listening for residential property investors considering renovation or value-add strategies, offering a practical, experience-led perspective on how to build equity responsibly, manage risk, and keep portfolios moving forward without getting stuck in outdated plans.