Anyone doing renovation jobs in Melb ?

Hi Guilio,

I’m in the same boat – about to start investing in Eastern Geelong (along the beach) in 2 bedroom Victorians and applying for construction loans to extend into 3/4 bedrooms and resell.

Speak to your financier about construction loans or I’m sure there are other members who have experience in this type of development!

My strategy is once I’ve got a deposit I’ll take out an A.B.N and put all my renovations/developments through the business to retain some tax money

If there is any1 else who can suggest different strategies / tactics to with-holding some profits, I’d also be keen to find out where to go with this next!

Regards,

Beth MacLeod

hi Giulio

what are you talking about

of course you can make money

just recently the reno sisters on channel 7’s “hot properties”, spent 2 years renovating, and after all costs,
made a whooping $20,000

$20,000 profit
2 years
4 people working on it
that’s $5,000 each for 2 years
that’s $2,500 each a year
thats $48 a week
thats $1.02 an hour……………

i know what your saying Giulio
MAC’s is paying more that that

but not a much fun hey…….
up to your knees in plaster dust

those guys don’t know what their missing….in those neat, clean little uniforms with the big M on it……..

renovating….their’s money to be made…..and its fun….every weekend……

sorry…been sniffing to much plaster dust, anyone got some turps to wash it down…………

hb

hb
check the lead in your pencil & repeat after me
“TV is not real”
“TV is not real”

So hb, you seem to be the expert on not doing renovations???

Whats your beef.

There sure is money to be made in doing renovations. And yep I think you have been watching too much TV as it has warped your mind.

[baaa]

TV is life, but they have not showed all examples of every renovation done in Australia, have they??? Maybe I just missed the last 10 years of lifestyle TV??

Why do people continue to do renovations on INVESTMENT properties?? You know, the ones you buy renovate and let out or refinance into purchasing further properties due to increased equity!! Because on the RIGHT property, there is good money to be made, the wrong property, yep they may B/E or not make any $$, agreed.

Investment properties are a bit different to your PPOR. Investment properties, get in, spend at max 5 – 10% of purchase price and get reno done ASAP.
Whereas PPOR, you tend to take more time as it will not produce cashflow or returns as it is your PPOR, hence the 2 years that your beloved TV show took perhaps?

See the difference?

I leave that to you to think about.

FATMAN

FM,
hb is right. Buy-Reno-Keep will provide u with better figures [on paper] than BRS. the transfer just kills the numbers.
Anyway the bottomline is that u make your money when u buy.
u will have a great reno outcome if u had done ur due diligence [expected price after Reno, cost of Reno, Transaction Costs buy/sell, and your projected profit].
Once we have bought the rest of the journey is just trying to cover up for any mistakes in our assessment.
if none we may actually see that profit!!

Kattan

hb

what is your point about the tax accountant and builder …. are you suggesting they are they experts in reno’s ??? What was their goal ??? Was it to pour as much money into it as possible to reduce tax ??. Did the builder build on emotion to make the best reno in the area no matter what the cost??

Everyone’s goals are different and it is not neccessarily to make a million bucks in a year.