Hey guys,
looking to pick up a couple of IP's over in the eastern states.
Residing in Perth was wondering if any of my forum brothers have done any interstate renovations and how they went about managing and monitoring it from interstate without having to fork out fees and costs to employ a project manager?
Short of flying back and fourth which really isn't an option- any suggestions?
just looking at the basics- kitchen, bathroom, floors and a lick of paint.
Ben
It's possible to arrange from a distant. You can appoint a project manager – or if you've got a decent property manager that's up to the task, you could ask them to help out (they'll expect some sort of payment which is to be expected).
Otherwise, I've had plenty of clients who fly to the property and spend a few weeks coordinating the work.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Connolly wrote:Hey guys,looking to pick up a couple of IP's over in the eastern states.
It always amazes me that PI's think the grass is greener somewhere else. Why would anyone want to try and reno from one side of the country to another when there's ample opportunity under their feet.
As everyone else has said it probably isn't ideal renovating from the other side of the country.
A friend recently bought a house in Port Hedland (WA) and he lives in Sydney. It was a renovation job and Port Hedland is pretty remote so you can't exactly just pop down to your local bunnings to pick up supplies.
To get this done he paid a friend (and Sydney resident) to fly over there and renovate the property for him. He paid for all flights, accommodation and building supplies and paid the guy a daily rate…plus paid for his food.
I say this to say that you could consider getting in contact with local builders or handymen and consider hiring them as a handyman…paying for the supplies and paying them a day rate to complete the work.
Otherwise you can get building quotes done for the project. Handyman will probably work out a bit cheaper but the job probably won't be as professional
Ryan McLean | On Property
http://onproperty.com.au
Email MeHey Freckle, have already done 2 renos here in Perth- our equity position allows 2 purchases. However one of our rules as we accrue property is not to spend more than 250k per purchase. This excludes pretty well everywhere in Perth (houses only) that has solid growth fundamental backed by positive cashflow.Only place that has legs based on the above is Geraldton.
I have watched this done over and over again, it nearly always ends in tears. If marriages don't/won't work over distances, I can assure you, renovations don't/won't ether. I love my tradesmen, but I have only ever met two or three that can get the whole job done without something going wrong, somewhere. That always means it will cost (me) more money and more time (increased risk).
The old saying "the squeaky wheel gets the oil" is so true with tradesmen. When you are not there, the other client who is busting them to get back to finish a job, wins. When I project manage, my policy is to be at the site no less then 3 days a week, minimum.
I can show you some great new deals over here in the east, they will give you less stress, with a lot less risk.
Modernity Investing
Email MeConnolly wrote:Hey Freckle, have already done 2 renos here in Perth- our equity position allows 2 purchases. However one of our rules as we accrue property is not to spend more than 250k per purchase. This excludes pretty well everywhere in Perth (houses only) that has solid growth fundamental backed by positive cashflow.Only place that has legs based on the above is Geraldton.I would drop the 250k limit and substitute it for something like a % gain on CG/equity post reno and cash flow as a cash on cash return. You could also reno and flip the odd property that has CG potential but doesn't meet the cash flow bench mark if you're having problems finding suitable project that tick all the boxes.
Multi state portfolios are over rated and don't compare to home town advantages. You're better offer creating a more flexible and adaptable strategy rather than a narrow restrictive one that pushes you beyond your home advantage zone while your building a stable portfolio base. As you increase your reno skills you might want to also start looking at developing as the next step. There are lots of opportunities in your home state for someone with a creative mind.
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