Flipping houses in Melbourne for under 450k and making 10+% profit.

Viewing 4 posts - 1 through 4 (of 4 total)

WaitNoMore
Participant
@stefanz
Join Date: 2014
Post Count: 14
July 15, 2014 - 7:54 pm
Any advice on locations in Melbourne that I could do quick renno(face lift) and make a profit?
Id like the property purchase to be under 420-430k so I’ll have 35k to renovate and 20k cash back up.
I like Footscray West, Airport West and Braybrook. Hard to find in that price range tough.
Any Ideas guys????
Thanks
Stefan
itsandrew
Participant
@itsandrew
Join Date: 2007
Post Count: 294
July 16, 2014 - 8:10 pm
A 10% margin seems very tight. How are you calculating that? Wouldn’t take much for it to go wrong.
itsandrew
Go as far as you can see and you will see further.
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
July 16, 2014 - 8:27 pm
A good point, 10% doesn’t leave much room for error, delays, overrun budgets or the ability to negotiate down on price to secure an eventual sale. Just some food for thought.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone Me
Investment Focused Finance Strategist - servicing Australia-wide
WaitNoMore
Participant
@stefanz
Join Date: 2014
Post Count: 14
July 16, 2014 - 9:07 pm
10% is min profit I pay myself, I’m going by the 135% rule from Steve’s book. So basically I add 35% on to the sale price of the property to see if feasible.
If prop is $420000 then resale needs to be about $567000 leaving me with 12% approx. $50400. The 135% covers all costs including my fee of 12%.
Sorry I didn’t explain myself.
Thanks
Stefan