Good morning all [blink]
I have been doing my saturday morning research and have found a property that needs work to update. My situation is I would like to update with renovations to kitchen and bathroom and then sell it off in quick amount of time to give me more equity to min debt (have 3 other properties, 2 neutral 1 positive geared)and then purchase other +IP’s.
How have other forum readers gone about long settlements? Is the property vacant (mine isn’t)and what about settlement do you resell prior to settlement if possible?
Many thanks
Jenny
Jenny Jordan
Hi Jenny,
Most people who buy to renovate and on-sell, take the option of a long settlement to gain (pre-arranged) early access to do the renovation ASAP.
As the prop you refer to is occupied it may be subject to a lease with some time left to run. This can make renovation difficult, though not impossible. (For instance you could offer reduced rent for access to renovate)
Do your research well, as it is not so easy to buy/renovate/sell in the current market.
Good luck with it all,
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
Hi Jenny
I have had sim experiences . Vendors do not like people 2 do renos to the property B4 settlement in most situations, unless you get it as one of the conditions of sale. Or if you are willing to pay rent it may be possible . Some vendors are also worried that some thing might go wrong and they are left with a house that has been guttered.one way to intice them is to offer them say a 20% deposit with access to the money instantly or higher than normal rent or both. Be careful with renovating to sell straight away your tax rate could be as high as 48.5% and the taxation office could see you as a business and could make you pay GST. Talk to your accontant before purchase or if you have already purchased talk to them B4 you sell . Good luck
Cheer Rick [drummer]
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