Hey id like to get people’s thoughts on this,
my plan is to renovate to sell the way i see it I could possibly do say 3 renos for the year and unlock potential profits between 60 to 100g.
I went to see a broker today who while wasn’t trying to advise on how to invest couldn see any other way other than the old renovate to rent, hold and wait for growth equity to build to use as next deposit for next ip and gradually build a portfolio claiming serviceability won’t be an issue… I said Yeh your probably right until I’m around 3 properties in…highly negatively geared and maxed out on serviceability also considering growth is flat lineing at the moment I could do as he says hold for 2 yrs and expect maybe 20g in equity at most his argument is selling is not worth it as the sell costs and CGT make it unworth while..If I renovate and sell I build a bank quicker being proactive in generating profits instead of just waiting for the market to go up, if I set up a structure I can get around being smashed with CGT.. and I project profits through formulas and not guessing costs blowing a budget and hoping for a an unrealistic sales price, I then purchase bye and holds with more cash down and in better growth areas looking for around an 8%ROI, I was told today I won’t get much more than 4%ROI I said there are other areas in this country…
There really obviously is a lot of speculators that do just do the same old thing… I by no means are any sought of an authority and am an absolute novis but I have a plan and am willing to learn, where I’m finding a lot of the people I’m having to deal with have no other way of thinking…
Is this way of investing a bad idea?
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