- danielleeMember@danielleeJoin Date: 2006Post Count: 197
Interesting topic, as my partner and I are looking at doing a reno for our first IP as well.
Did anyone see the Better Homes and Gardens last night, where they set a limit of $500 to do up each part of a house? Was amazed that they could do up a garden simply for under $500. Makes me think how many people will be keen on trying their hands out.
To me, the way forward wil be to tackle the harder projects that require a lot of work, as that will deter your average person from having a good. Still, that means simple cosmestic jobs are not going to cut it as easily as before.
DanielLuke TaylorParticipant@world-changerJoin Date: 2005Post Count: 415
great topic guys !
Its definately true when it comes to renovating,it depends on whether you do it yrself or pay people.It can easily add up when you contract everything out.But it isnt impossible to make a profit getting help.
I have on the last couple of reno s ,but i get handymen only to help and i watch them thoroughly,while Im working on other areas.(its a matter of paying $15 per hour as opposed to $50 to 150 per hour!)Occasionally you have to say NO im not happy with that job rip it up and do it again.And even if that happens once or twice and you have to repay them the second time it always comes in Much cheaper than paying tradies.
Its really good satisfaction when you do alot of it trself too! You realise its not really that hard ,just takes a bit of care and thought.
Ive learned though,that at the end of the day you can do heaps of work reno ing a house and then if the market comes back during that time period you can almost have only made the extra materials cost back after selling it. As oppossed to the profit you would have made from growth already earned in the property from purchasing earlier
But at the end of the day ,still making good profit due to buying well.
Daniel ,I would encourage you to go for it man !
But try to remember those quick and easy reno shows make it look pretty cheap and easy .Some of their work manship up close can be questionable.(Fine for a cheapy house but not always easy to sell them if not finished properly.)jeffjMember@jeffjJoin Date: 2009Post Count: 9
I didn't see the show but $500 worth of paint, plants, mulch and skip hire mixed with a generous splash of elbow grease is sure a winning combination.
The capital growth in a rising market can cover a lot of sins.jazz77Member@jazz77Join Date: 2009Post Count: 78
I think its important to look at all the facts when looking at other peoples reno "success" stories.
If a property was purchased for 200k and had a 20k reno done over 6 months, then sold for 250k it would appear the reno has resulted in a gross profit of 30k. But dont forget alot of these stories come from a time when property was experiencing a massive growth period, both in renovated and unrenovated homes. Its very possible the same property purchased for 200k and held for the 6 months (possibly returning rent as well) could have sold for 230k, again a 30k profit. Without any of the risk and lost rent a reno involves.
I think many of the reno success stories are more a capital growth story on the land, not the house. That may explain why there may be less interest in reno and sell at the moment, cause the land is not appreciating in value over the reno period.
Not to say it cant be done but be aware of what has really caused the higher sale price in the examples shown in magazines and online.
Interesting reading on this site, some good tips and advice.crashyParticipant@crashyJoin Date: 2003Post Count: 736
also consider building inspections, stamp duty, solicitors fees, banks fees, mortgage insurance, agents commission, marketing, mortgage repayments, rates, unpaid labour, building insurance and lots of other costs people are quick to forget to include….danielleeMember@danielleeJoin Date: 2006Post Count: 197
In the suburbs that we are looking at, the lower-end of the market is supposedly running pretty hot. Yet there are contradictory signs happening at the same time. With many FHBs out there, you would think that there would be more properties for sale; yet REAs are scouting around looking for property to sell, as people are not offering them up for sale.
The low interest rates, coupled with a market that is only buoyant due to the FHBs, generally mean that people can afford to hold onto their IPs and probably rent them out instead, which could explain why rental rates have gone up in some suburbs.
We have not found anything suitable for us to 'reno' on at the moment, and am still looking. With the increased FHBG ending its end in 3 months time, will the rush of FHBs encourage more people to attempt to cash-in and sell their IPs?
Daniel LeeneetyMember@neetyJoin Date: 2007Post Count: 15
Yeah, but better homes and gardens probably have about 30 staff in the background that probably dont get paid for the work they do. So $500 is just for the purchase costs of goods.
NeetyneetyMember@neetyJoin Date: 2007Post Count: 15
Woops didnt realise there was a page 2 !