Hi everyone,
I’ve got finance sorted to allow me buy property up to the value of 875k. This is with a 15% deposit from shares and equity and cheap LMI with ING for an 85% LVR. Myself and my partner are renting in Sydney at the moment so we’re considering buying a house in need of renovations and doing a lot of the work ourselves. Based on one property I’m looking at now I think I could make 100k profit if we move in, renovate it over a year (to avoid CGT) and then sell, and maybe do the same again if the first one works out and we still have our sanity.
I would love to hear from anyone on whether you think this is a good use of the finance, money down etc and other ways you would use this finance equity etc etc.. Our goal is to replace some of our income from corporate jobs with income from property.
Thanks in advance
yes it is possible to buy, refurb & sell at a profit in sydney but transaction costs are high. In your case it’ll be around $50k + holding costs.
You might be well served finding a deceased estate in poor condition.
I asked this question a little while ago and didnt get much of a response. Scott no mates is right to do it properly and make a profit you really have to add allot of value and buy in good locations (wealthy areas). For example. Buy a runned down two bedder renovate so its a 4 bedroom home with a study and off street parking. So adding value by adding rooms and off street parking is the key in this example. If you are just buying and renovating you may lose money or just break even.
Anyone else disagree or have a different example?
I agree. A big part of the problem is stamp duty.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Scott No Mates wrote:yes it is possible to buy, refurb & sell at a profit in sydney but transaction costs are high. In your case it'll be around $50k + holding costs. You might be well served finding a deceased estate in poor condition.Where did you get the $50K from. He didn't even say how much the property costs.
Assuming it was $800K holding costs would only be $50K if it took a year. But they are not paying rent while they are doing it so it's considerably less.It's doable of course (lots doing it already) but make sure you take into account ALL costs to determine if it's viable for you. You can make big bucks with more expensive property but the outgoings are a lot higher.
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