We have located a fantastic house, with great long term CG potential in sought after area. Potential for renovation (currently ony 2bed x 1bath), however our current financial position prevents us from supporting a CF negative property. Any great ideas or solutions to this problem?
We would normally consider renovation for quick turn around however the margins are too tight. We are loathed to let a good opportunity pass by.Maybe sell the opportunity to someone else. Get a spotter’s fee.
hi Natasha
Explain the however the margins are too tight.
if they are tight then is it worth doing.
you can’t be half pregnent either it is good capital growth in which you hold.
Or you pay out and develop and sell.
I might sound hard but I look at a development site and say it will have great capital growth because I will make money or move to the next site.
Value is only governed by what somebody will pay for it.
I have programmes that don’t allow margin are to low and a lot of my current work is pulling customer out of the —- because margins are low.
if they are so low then look at the ones with margins that are over 20% as thats what banks will lend on.here to help
Thanks for feedback. Margins are too tight – means that in this case, we can’t make enough money on a reno/sell, but we do think the property would be good to buy/hold, however our current $ position won’t support a CF neg property, so we are seeking any creative solutions on how to still take advantage of a good property??
As Robert Kiyosaki says, great opportunities come around once a week, if your looking hard enough. Keep your DSR is 95% or under go for it, or wait for the next fantastic opportunity.[exhappy]
hmmm maybe you should look at a money partner.
If your unable to find one, you might just try and concentrate on your finace, create some equity in your home maybe ? Getting it valued might be an option, it could help with your lending capacity.
You could also look at buying a neutral or positive geared property.
hope that helps [biggrin]“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
I agree with Giulio,
Find a money partner or create equity somewhere else to draw from and suplement cash flow short fall. There is always a way if you truly believe it is worth it.
Cheers,
ErikErik Reurts
Micah Finance Solutions
http://www.micah.com.au
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