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Could you still insure to cover this warranty? If I was to get insurance for owner building what are the average costs? If I also to option the property, could the owner take the insurance to cover any requirements?
Cheers Trakka,
Very informative post. I came across something similar to this when I was selling my first property, it came up through my conveyancer, he mentioned the same concerns and the prospective buyers asked that I guarantee any faults in any renovations. A building inspection couldn't fault anything I'd done, and I didn't agree to their terms but they bought anyway.
You raised a good point and thanks for the feedback and suggestion. I'll definitely be looking into some asset protection structure.
Billy
Also… Assume the possibility of having no purchase costs such as Stamp Duty, Loans and Financing costs and minimal Legals. This would reduce the 1.35 ratio somewhat and allow for more gain and purchasing negotiation.
Any thoughts on how this may be achievable?
Billy
Thanks Cullsport,
Definitely worth looking into. I have been hunting the net for freebies and excel spreadsheets to try piece together a package. I'll take a look into it, by researching forum threads and other users feedback on the benefits of the package.
Thanks for your feedback and helpful suggestions.
Billy
Thanks Scott,
Appreciate your feedback.
I would be looking at at least 10% profit but it depends on what the market will pay. So I guess your saying that this amount of work could add about that to the property.
Ideally I'd like to get the property under market value, either because of seller circumstance or the poor condition of the property. I would then not actually want to purchase the property, but take an option on it and then do my work then resell it once complete. This would then remove any agent fees, legal and finance costs, thus removing your mentioned 50K out of the transaction.
Renovations would would cost me between 20-30K if done handyman style. I've renovated before and and currently on my 4th, so do realise the mark up that is added by professional labour. In my estimate it's about 70% of the cost.What are your thoughts? Do you have experience with property renovation? What industry are you in?
Look forward to any further comments that you may have mate.
Welcome feedback and comments from anyone.
Thanks.
Billy
Thanks guys. will look about the forum and try the above options suggested… I'll let you know how I get on… Billy
