Buy-Renovate-Sell

try staters try:

http://www.renovateforprofit.com
(an aussie site)

http://www.renokings.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

The Reno Kings do seminars. I’ve seen their seminar material and spoken at one of their seminars (on depreciation). They’re pretty good – and very successful. You’ll pick up lots of good, practical ideas. They don’t necessarily advocate selling, but they are into buying and renovating to add value. Whether or not you sell is up to you. Not sure what the cost of the seminars is.
Scott

WOW !!!
Hope its good for the price…..any guarantees… eg…that you will make 10 times the ticket price if you follow their tips ??

Spoony,

We bought a place in country WA for $34,100. Yes very run down. We’ve renovated it at a cost of $16,500. If you add the purcahsing costs to it ie: stamp duty, loan costs etc, it probably brings the total cost of the place to around $55,000. We just have the real estate agent up there through on the weekend and he estimates it would proably get around $70,000 – $75,000 for it.

Now the catches are:
a)being country you expect it to take longer to sell ie: athe area we are in averages around 6 months. The mortgage payments on the loan are around $240 so that adds another $1,440 to the cost of the property when holding for 6 months. Plus you have the agents selling costs, probably around $4,000 – $5,000. So that brings the cost to $60,500ish. (Still a profit of $10,000 or more).

b) Renovating in the country means driving there to do it. If you can take a month off work to do it then you’re laughing as it’s only one trip to do the lot, the cost of that isn’t much. Unforutanately we could only get 2 weeks off work and have had to travel up each weekend after that for the last two months, that has proably cost us nearly a $1,000. Still, it’s a profit we wouldn’t have had to start with and it was on a low valued house intially, so if we messed it up, we would only have been out of pocket by our renovation expenses and probably could still have sold at the same price we bought at.

Basically we looked at that being the worst case scenario and it was something we could live with so we gave it go. We’re not actually looking at selling this one as the rent that we can now achieve makes this very +ve cashflow and rentals are in demand in the area so we’re going down that track.

So yes, reno’s can be costly or they can add value. It pays to have a set budget and make sure you don’t overcapitalise. We knew the values in the area before we started so knew what could be achieved if we did it right. On that note, we could do other thing sot the house but have chosen not to as it would be “nice to have” but not actually add any value to the property. So do it with care and you can add value.

Good Luck
PK

A little tip, be very careful in your estimations of costs, they can blow out big time. Are you in Sydney? I have good builders in Sydney and Darwin if you want their details

Hi Marisa,

Yep bowled it over in a day and a half – nothing new in it but a good read nonetheless.

What I did find of interest were the similarities between other books I read or information I have sourced over the years; Jan Somers, John Fitzgerald, Steve Navra, Ed Chan and dare I say it,Kevin Young that all advocate a buy and hold approach to property investment. Sure they have their differences but in essence there are many more similarities.

Derek
[email protected]

Property Investment Support Available. Ongoing and never stopping. PM welcome.