Would like some advise I intend to buy the worst house in the steet and do my first reno. All other houses are pulling high 500k. Looking to buy @300k and spend 100k on reno
GOOD OR BAD START
STEVODepends on alot of factors.
Can do work yourself?
Going to live there? If PPOR its tax free
Make sure its good quality work!
Make sure property is structurally sound – its expensive doing structural work.In my view if you have considered all factors then its a great idea in building up some sweat equity.
I would look to spend less than 100k. Try for 3-4 times the amount you invest. Dont bother with anything other than superficial measures eg carpet, paint, curtains, garden etc.
Regards,
Si$100k just for renos sounds like quite a bit for a property of that price. You could build a new house for a tad more.
Give it a hit mate, whats the worst that can happen? You get your money back and get a crash course in gyprocking!
If you dont have much experience on the tools then buy some books mate, they can save you a bucket.
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Exactly per Sibo’s comments.
Frankly I don’t spend more than 15% on a property.
Target the reno budget at $40-$50K.
Remember your aim is to sell (from your post anyway) – you need to take into account the selling costs & CGT and how it reduces your profit
Cheers,
Aceyducey
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