My wife and I are just starting out and plan to do our first buy-reno-sell project in Perth this year.
Who else is renovating in Perth? Would be great to network with some like-minded people who are employing the same strategy and share what works and what doesn't work in the Perth market, plus also get some recommendations of reliable builders, reduced price suppliers, good real estate agents, etc., etc.
So if anyone is renovating in Perth or knows of any group "get-togethers" on renovating let us know.
HI Jye & Tahnee,
My partner and I have just bought a property to renovate and subdivide and sell in Bassendean – where are you looking?
KateDaneo79Participant@daneo79Join Date: 2012Post Count: 32
I know a great painter, takes pride in his work and good price.
Looking for a good broker and lawyer in Perth. Anyone know any?
Hey Kate, just flicked you an email.
Jye and Tahnee
Ok great Daneo79,
Do you have his details? Will grab a quote off him for our project.
Will be looking for a good property lawyer in Perth ourselves.
As for mortgage broker – we'll plan to go with Richard Taylor. QLD007 on this forum. He's QLD based, but it doesn't really matter where your mortgage broker is. Cheers.
We use Jamie from the forum, he's in ACT but that's not a problem at allkkatleaMember@kkatleaJoin Date: 2009Post Count: 8
Hi Jye and Tahnee
My husband and I are in Perth and are currently renovating our villa to sell in the next couple of months and then will be looking for another buy-renovate-sell project. I would also like to be able to chat to like-minded renovators and we do have some good tradies that we have used so far but would love some more recommendations.
KarenKent CliffeParticipant@kent-cliffeJoin Date: 2011Post Count: 110
Best of luck with the renovate and flip project. As well as working at Momentum I renovate/develop property on the side to help generate further income to feed into my passive portfolio. There is a group of property investors that meet on a monthly basis, you might like to attend. http://www.propertymeeting.com.au
I can't stress this enough, but if you're looking at flipping property make sure you are 100% confident on your numbers. I always say to people that you should work back from a sale price. No matter how nice the renovation is, the market will dictate price. Unfortunately, renovating property is less about colour selection and making the property look nice, it is more about tight budgets, strict deadlines and negotiating well.
Whenever I look at a deal I use the following feasibility:
End Sale Price: $400,000 – Based on other properties renovated that have sold using Pricefinder/RPData
Buying Costs: $12,000 – duties and settlement agent costs
Holding costs: $15,000 – 9 months of interest at 5.5% (because you're still be paying interest after it sold before settlement)
Renovation budget: $30,000 – costings based on trades doing the work
Selling Costs: $20,000 – agents fees, marketing, and settlement fees
Your Profit: $30,000
Purchase price: $293,000
So the very basic rule of thumb is buying a property for $100,000 less than your end sale price.
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Thanks very much for your advice.
Many successful renovators have told us now "it's all about the numbers". So we are starting the phase of finding a suburb/area where the numbers will actually work.
Have signed up to the propertymeeting.com.au site, so look forward to the next meeting in Perth which is "coming soon".
Jye and Tahnee
Flicked you a couple emails with some questions the same day I replied to your post.
Hopefully you received it. If not let me know.
Jye and TahneeDaneo79Participant@daneo79Join Date: 2012Post Count: 32
Sorry for the late reply.
End of Month has been crazy…. Can't wait to quit my day job!
I will get the Painters details and post them in the next few days, I need to update my contractors list anyway.
Can anyone supply the details of a good chippy?
I need to get some final work done to my PPR. (and then get the valuer in)
I will be getting quotes over the next 2 weeks and hopefully get the work underway soon.
All good. Have been quite busy ourselves.
Look forward to hearing from you re: painter details.
JyeRezaParticipant@rezap2500Join Date: 2014Post Count: 1
My wife and I just thinking about the Buy-reno- Sell projects.
I can see the your comments back to early last year. I am just wondering whether any of you guys started Reno projects since then? if so, how was the profit?