HI Everyone,
Today I went to an auction in my street,there was not 1 bid but someone had put an offer in subject to finance 465k after the auction. The home is 8 yr’s old 34 sq dbl storey,dble garage on 2300 sq mtrs Narre WarrenNth. I beleive If I spent 20 – 25k I could resell at 530 – 550k. Does this sound ok or not, if so can I claim on Interest for tax benefit & how do I set this up ? I am itching to get started but know very little.Does any one want to partner this project.Cheers
Daz [strum]Hi Daz
Please make sure you do your own due diligence (research) but I have Residex Top 100 predictions report (results ending quarter June 06) and Narre Warren Nth is rated 9 out of the top 10 country Vic for future growth predictions. Median value was $510.5k. If you are only going to resell then you probably wouldn’t worry about claiming too much back in the short term as it will only be added back when selling (I think that is how it works), although if you kept it you would get the building write off of 2.5% per year for capital works and there are probably some fixture/fittings in there that can still be depreciated quicker. Speak to an real estate agent and find out what the resale market is like for houses in that price range and area. You don’t want to spend that much and end up like the current owners did at their auction…no-one bidding!
Cannot help on the structuring and joint venture sorry.Originally posted by daz61:HI Everyone,
Today I went to an auction in my street,there was not 1 bid but someone had put an offer in subject to finance 465k after the auction. The home is 8 yr’s old 34 sq dbl storey,dble garage on 2300 sq mtrs Narre WarrenNth. I beleive If I spent 20 – 25k I could resell at 530 – 550k. Does this sound ok or not, if so can I claim on Interest for tax benefit & how do I set this up ? I am itching to get started but know very little.Does any one want to partner this project.Cheers
Daz [strum]This may help you decide what to do:-
purchase price- $465,000
purchase costs- $ 27,900 (6% of p/p)
reno costs- $ 25,000
selling costs- $ 12,000 (2% agent commission and $1k
legals)
holding costs- $ 17,251 (6 months interest @7%)TOTAL- $547,151
selling price- $550,000
PROFIT- $3,000.
less capital gains tax? – $1,000 (total guess; but possible)
NETT PROFIT – $2,000
I have based theses figures on the lower purchase price, the highest selling price, 6 months from settlement to resell of house factoring renos and sale campaign period, cheaper interest rate than market standard.
These figures are assuming that everything goes your way, although I’ve allowed 6 months from buy to sell and I think you will be hard pressed to sell it sooner, but you may be lucky. You may be able to spend less on renos, but the selling costs are probably higher.
In a nut-shell – it is a lot of work for a total waste of time.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi JFisher
I appreciate the feed back thankyou.
DazOriginally posted by JFisher:Hi Daz
Please make sure you do your own due diligence (research) but I have Residex Top 100 predictions report (results ending quarter June 06) and Narre Warren Nth is rated 9 out of the top 10 country Vic for future growth predictions. Median value was $510.5k. If you are only going to resell then you probably wouldn’t worry about claiming too much back in the short term as it will only be added back when selling (I think that is how it works), although if you kept it you would get the building write off of 2.5% per year for capital works and there are probably some fixture/fittings in there that can still be depreciated quicker. Speak to an real estate agent and find out what the resale market is like for houses in that price range and area. You don’t want to spend that much and end up like the current owners did at their auction…no-one bidding!
Cannot help on the structuring and joint venture sorry.Hey Marc,
Thanks Heaps it just shows you I have a lot to learn.
Many Thank’s
DazOriginally posted by L.A Aussie:Originally posted by daz61:HI Everyone,
Today I went to an auction in my street,there was not 1 bid but someone had put an offer in subject to finance 465k after the auction. The home is 8 yr’s old 34 sq dbl storey,dble garage on 2300 sq mtrs Narre WarrenNth. I beleive If I spent 20 – 25k I could resell at 530 – 550k. Does this sound ok or not, if so can I claim on Interest for tax benefit & how do I set this up ? I am itching to get started but know very little.Does any one want to partner this project.Cheers
Daz [strum]This may help you decide what to do:-
purchase price- $465,000
purchase costs- $ 27,900 (6% of p/p)
reno costs- $ 25,000
selling costs- $ 12,000 (2% agent commission and $1k
legals)
holding costs- $ 17,251 (6 months interest @7%)TOTAL- $547,151
selling price- $550,000
PROFIT- $3,000.
less capital gains tax? – $1,000 (total guess; but possible)
NETT PROFIT – $2,000
I have based theses figures on the lower purchase price, the highest selling price, 6 months from settlement to resell of house factoring renos and sale campaign period, cheaper interest rate than market standard.
These figures are assuming that everything goes your way, although I’ve allowed 6 months from buy to sell and I think you will be hard pressed to sell it sooner, but you may be lucky. You may be able to spend less on renos, but the selling costs are probably higher.
In a nut-shell – it is a lot of work for a total waste of time.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
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