Bought a house for $22,000 in NSW

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 13, 2012 - 5:49 am

Chris89 wrote:

Hi Engelo10, other than the very low purchase price, what are the positives?

14% population decline in the area
higher than normal amounts of properties for sale
granted 0.2% vacancy rate, but that is because there was one property for rent, 2 rental vacancies brings the vacancy rate to 1%
And the only rental property up for rent has been on the market for a long time (1000 views)

sorry to put a downer on this, but what are the positives you have found with the town that I have missed? Other than the price. Will be interesting to see ow u go renting it

 

I didnt mention any positives about the town haha

Thanks for your reply.

Regards,
Engelo

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[Marie123Participant@marie123Join Date: 2009Post Count: 176]

March 13, 2012 - 6:51 am

Well done, sounds like a good deal.

I would like to know how you are going to do this renovation for $15k and what the secret is? Is it only a small job – it seems big to me.

Cheers.

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 13, 2012 - 8:22 am

Marie123 wrote:

Well done, sounds like a good deal.

I would like to know how you are going to do this renovation for $15k and what the secret is? Is it only a small job – it seems big to me.

Cheers.

Hi Marie,

No secret, I will source cheap materials in Sydney and take them with me to Coonamble. I will have 3 carpenters on the job for 10 – 14 days. Will find a cheap motel for accomodation. Other trades will be used when necessary. The property is not too bad and needs a basic internal renovation (kitchen, bath, carpet, paint) and exterior needs some more attention. The roof needs fixing, piers need to be adjusted, patch fibro sheets and a paint exterior.

I have already done 7 similar projects for myself and others. This one just needs a bit more external work than previous ones.

Regards,
Engelo

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[Marie123Participant@marie123Join Date: 2009Post Count: 176]

March 13, 2012 - 9:52 am

Hi Engelo

Sounds good to me. It won't surprise you that I am a newbie! I have a project I am looking at and I was thinking it would be around the $37 – $40k mark. This house (possibly) needs a few stumps lifted, it needs a new kitchen, a new bathroom, a paint job throughout including the ceilings and some patch work. Also needs new flooring and the old flooring sanded. Some of the archatraves need work and a second bathroom will be created from the large laundry… all this a carpenter said roughly $15k!! The house also needs an outside paint job or rendering and new curtains. I am in WA but the rules would be the same I guess… still, can't see all that works out at just $15k.  Will have to keep searching before I take the plunge. Thanks.

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 13, 2012 - 9:44 pm

Marie123 wrote:

Hi Engelo

Sounds good to me. It won't surprise you that I am a newbie! I have a project I am looking at and I was thinking it would be around the $37 – $40k mark. This house (possibly) needs a few stumps lifted, it needs a new kitchen, a new bathroom, a paint job throughout including the ceilings and some patch work. Also needs new flooring and the old flooring sanded. Some of the archatraves need work and a second bathroom will be created from the large laundry… all this a carpenter said roughly $15k!! The house also needs an outside paint job or rendering and new curtains. I am in WA but the rules would be the same I guess… still, can't see all that works out at just $15k.  Will have to keep searching before I take the plunge. Thanks.

A lot of it also has to do with the area. If I was doing the renovation in an inner city area of Sydney I wouldnt be using cheap materials as the potential buyer or tenant would expect a better product. I will give you an example. The kitchen I will be installing in Coonamble will cost me $1200 to supply and install. I will be spraying the inside with the same colour on the walls and ceiling. The outside will also be sprayed with 1 colour on the walls and ill spice it up with a different colour on the roof so complete painting wont cost more than $2500 with labour and materials.

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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

March 13, 2012 - 10:08 pm

Loving this thread Engelo.  Keep the story rolling! 

Jacqui Middleton | Middleton Buyers Advocates
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VIC Buyers' Agents for investors, home buyers & SMSFs.

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 14, 2012 - 3:03 am

JacM wrote:

Loving this thread Engelo.  Keep the story rolling! 

Thanks JacM

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[jeromejfMember@jeromejfJoin Date: 2012Post Count: 29]

March 14, 2012 - 9:32 am

pretty sweet deal .Hope it works for you, im sure it will. How did you find out about his property ..may i ask or am i being too nosey ?

[Marie123Participant@marie123Join Date: 2009Post Count: 176]

March 14, 2012 - 9:37 am

$2500 is a good price. I will have to look at spraying ours since it will have to be guted anyway. Where did you get the $1200 kitchen from? Is it laminate? How big is the bench space? That also sounds good!

Cheers.

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 14, 2012 - 9:38 pm

Marie123 wrote:

$2500 is a good price. I will have to look at spraying ours since it will have to be guted anyway. Where did you get the $1200 kitchen from? Is it laminate? How big is the bench space? That also sounds good!

Cheers.

The whole house shouldnt take more than 2 days to spray. Depends as some areas might need to be rolled. The kitchen will be a flatpack from Bunnings and will cost around $750 and labour might cost me around $500. Its laminate. I have attached a link with the kitchen specifications.

http://www.bunnings.com.au/products_product_straight-line-kitchen_3593.aspx?search=straight+kitchen&searchType=any&searchSubType=products

Regards,
Engelo

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[eliseyParticipant@eliseyJoin Date: 2009Post Count: 40]

March 14, 2012 - 9:41 pm

Hi Englo,

can you show us some before and after photos, after you finished the reno.

Taylor

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 14, 2012 - 9:45 pm

elisey wrote:

Hi Englo,

can you show us some before and after photos, after you finished the reno.

Taylor

No problem, Will do. Reno start is around 1 month away

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[streamlineinvestingParticipant@streamlineinvestingJoin Date: 2010Post Count: 171]

March 14, 2012 - 10:38 pm

Hi Engelo,

Great thread mate. Definitely keep the posts coming!

I have a few questions as I live in Sydney and am thinking about undertaking a similar project. To give you some background, my mate and I are working full-time as engineers and have been looking at purchasing a property in the US for the last year or so. This is harder to do than it first seemed and we are now looking at buying a cheap property in NSW and doing a renovation to increase equity and rental return.

My questions are:

1) What do you do for a living and how do you manage to find time to renovate a property (you mentioned that this is your 7th or 8th project)?

2) How did you get started in this and what would you recommend for us as a first project?

3) How much of the work do you do yourself and how much do you contract out?

4) Do you have a team of people that you use (tradies, property manager, real estate agent)?

Once again, thanks for starting this thread and keep up the good work!

Cheers,
Lenny

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 15, 2012 - 1:36 am

streamlineinvesting wrote:

Hi Engelo,

Great thread mate. Definitely keep the posts coming!

Hi Lenny,

Thanks for your post.

I have a few questions as I live in Sydney and am thinking about undertaking a similar project. To give you some background, my mate and I are working full-time as engineers and have been looking at purchasing a property in the US for the last year or so. This is harder to do than it first seemed and we are now looking at buying a cheap property in NSW and doing a renovation to increase equity and rental return.
I own property in the US, it takes time to set up the LLC, accounts and meet the right people but its definetly worth the effort.

My questions are:

1) What do you do for a living and how do you manage to find time to renovate a property (you mentioned that this is your 7th or 8th project)? I have an interior fitout business. I would go in between jobs to do renovations on my personal properties. You must plan ahead and organise all the trades and materials. If you know what your doing it shouldnt take more than 2 weeks to do a full internal renovation.

2) How did you get started in this and what would you recommend for us as a first project?
Hard to say. Pick quality over quantity. Be patient and dont just buy to get your numbers up. Wait for a cracker deal. A great deal is something that you can increase in value with a renovation and pull out the equity. After you pull out the equity the property is positive or neutrally geared. These deals are not easy to find but are worth the wait. They will mostly be similar to the one I just bought. Fire damaged, vandalized, termite infested.
3) How much of the work do you do yourself and how much do you contract out?
I would demolish (laboured for 4 years so its still in my blood), sometimes paint and do bits and pieces. I mostly project manage and coordinate all the other trades. Completion is sooner and of better quality if you get tradies in.
4) Do you have a team of people that you use (tradies, property manager, real estate agent)?
You build relationships with people werever your looking at buying. I own 2 properties in Mildura and have fantastic contacts there. I can pretty much buy a house site unseen and renovate it without even going there as I know good people I can trust. I didnt know anyone at the start but eventually you will meet people. For Coonamble I will be taking my trades from Sydney as the local builder was a bit too expensive. I have a great contact in the council who I have spoken to a few times and also been in contact with the agent and a few local motel owners. People are very friendly in regional towns.
Once again, thanks for starting this thread and keep up the good work!

Hope I was of help.

Cheers,
Lenny

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[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

March 15, 2012 - 1:40 am

I forgot to mention. I work with the likes of Nathan Birch who is an absoule guru when it comes to these kind of deals.

Regards,
Engelo

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[Marie123Participant@marie123Join Date: 2009Post Count: 176]

March 15, 2012 - 4:38 am

I met Nathan at the last Mega Conference. He also was looking into a deal for me. I just couldn't make the jump to buy over that way when my other IP is so close and handy I can drive past it every day. Maybe another time…

Another friend of mine, Wisepearl infact (hope she doesn't mind me talking about her here?!), said she looked into IKEA kitchens and Bunnings but they weren't the cheapest for her last reno. She ended up sourcing a carpenter who did the job.

[Marie123Participant@marie123Join Date: 2009Post Count: 176]

March 15, 2012 - 4:40 am

Ps. Love the splash back and the colours. Simple but effective. Smaller than I imagined but still workable. Cheers

[themagnix28922Member@themagnix28922Join Date: 2003Post Count: 5]

March 15, 2012 - 5:25 am

Nice to see some action. My rule of thumb is market, sub market, then property. I never look at the property first! If there is nothing driving the market I don't bother.

[EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618]

August 10, 2012 - 9:34 am

Hey guys,

Just sold Coonamble for $35,000 without touching a brush haha

I am pretty happy with a $10,000 profit for signing a few pieces of paper

I was too busy with other renovations I am currently doing so I didnt want the headache of this one also. There is money in the deal even at a purchase price of $35,000. There were so many offers on the property and so many people pulling out last second. I find it hard to believe how people are scared to make money even tho I was willing to accept a lower price so the new buyer could also make a profit. Once the new buyer completes the renovation the property will definetly be worth around $80,000 minimum. I had all trades organized and ready to go at a cost of around $20,000 and this is without me doing any work.

Regards,

Engelo

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