- StevenParticipant@steven1982Join Date: 2017Post Count: 189
Question for those who are active in Victorian market. I haven’t been looking for a while so I am kind of out of sync with the market at the moment.
Anybody able to advise which areas are best suited to buy run down properties to renovate and then rent after renovation?
I am flexible with price bracket though trying to keep it within 300K if possible. In other words, something similar to below, which is what I did in New Zealand:
1. Buy a run down property for 150K
2. Spend 30K to add value
3. Rent for 330 per week
3. Get a valuation report that says property is worth 220K.
To above is something like 9% yield and 20% capital gain through a renovation. This allows me to immediate start looking for the next deal after renovation rather than having to wait for market to increase by 10% for 2 consecutive years.
I know a property $150 would probably be hard to come by, but the concept should apply. To me, as long as I can get the % return of investment out of it, the price bracket is flexible.JaxonParticipant@jaxonaJoin Date: 2014Post Count: 284
Cohuna, Moe, Ballarat, traralgon and many more.
in these areas & many others there are properties 100-250k with similar options as the one mentioned.
All the best!
Most of these areas & more will have similar properties that have been sold renovated which will be an easy indicator its met your area (if you can produce a similar product (PROPERTY)HomeBuyerLouisianaParticipant@homebuyerlouisianaJoin Date: 2020Post Count: 17
Hey Steven, I have properties in Geelong and Melton but bought them a few years ago and am out of touch with the market. I like you strategy, it is really common in the States, they call it BRRRR. This stands for Buy, Renovate, Rent, Refinance, Repeat.
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