Forum Replies Created
Commodore VX wagon in silver.
Somewhere to put my boards for surf trips. Is economical an I dont tear up when some wanker smacks his trolley into a panel. Owned outright so all monies can go to buying houses And getting shit done.
Hey Richard,
how much did they cost you to put on site, fit out, hook up to services, etc?
have you sold or do you still have? if you have sold how did resale go compared to similar properties?
Cheers
I second Joe- can I ask what is your strategy and why your bullish on Geelong?
Hey Catalyst,
very impressive- place looks brilliant.
Where abouts was this purchase?
out of curiosity- you said for every dollar spent you look at a return of $3 for Reno projects- so if you spent $300k on a place, put $20k into a Reno; you'd expects reval to come in at $360k is that right?
Benny,
mate reference to verticals is for window coverings.
Use them as they look modern, easier to replace if a single one is damaged is as simple as unclip remove and reclip the new one on which cannot be done with venetians.
Curtain I don't like for rentals personally, so basic premise is ease and less hassle if I have a shit head tenant that wrecks a few as well as looking the goods too-
Hey catalyst,
ebay doesn't get much over here but have grabbed lots of stuff from gumtree. Vanity, sink, mixer taps, ovens and range hood etc which have been 1/3 of the price if not less.
All tiles from wholesaler and kitchen guy was local cabinet maker.
With this current project, we did find a wholesaler for the kitchen which all had pre made cabinetry which was going to work out real cheap but the corner cabinets were 900mm each (U shape kitchen) and standalone oven 600mm giving total 2400mm, the space was 2300mm which was a pain- kitchen would have worked out at $4k if had of fit but so be it. still should make $50k on this one after all said an done. Try work back from a minimum of $1.50-$2 for every dollar spent on Reno when we look at revaluation when making initial offer.
do you guys flip post Reno or revalue, lease them and go again? And how many have you done?
cheers
Catalyst,
How do you do a house for 15k?
This is our 3rd house, second reno project. We didnt go ahead with the 2 bedda mentioned above, instead a 3×1 on 700sq block that we picked up 20-30k below market value.
Have had multiple quotes but considering the basics-
Kitchen- $6700
Bathroom- $7500
Carpet 3x rooms- $1100
Paint- $400
Vertical- $1800
Flooring- $1200
How do you do all the above for sub $15k. Both kitchen and bathroom required full demo with nothing salvageable but other that those two spaces we have done the grunt work but still flat out getting out of it sub 20k with a deck we need to put in and demolition of a rear games room that is falling apart be looking more at $25k.
We are in Perth which seems to be more expensive than anywhere else in Aust- be interested on your take.
Hey Ferdinand,
Just to clarify is that $750k spend on knew PPOR or IP?
If IP, is it a house or other dwelling style?
Ben
This one is down in Hillman which is suburb of Rockingham shire, right near hospital an recently upgraded shopping centre. I live in Yokine so is a solid trip each day I do renos so being more strategic with what I chose to do an what I get trades in to do. 2nd Reno project which will be a buy, Reno, reval an lease.
Are you doing complete refurb or just key bits an pieces?
$7800- more like $8800. My maths isn't that bad
Hi Kate, we are running on a bit of a clock so thought just having a group in there would cost me a bit more but save money in time an holding costs- got a quote today for $7800 which I'm happy with. 5500 for all labour an just over 3k for all the other stuff that I pay for.
Tommy- I've already done the full demo, all tiles, bath and vanity have been removed- just left shower in tacked so can clean up before heading to work- where is your Reno project?
Thanks all for responses!
Thats about right freckle- 3m x 2.5m space, all demo complete. No change in plumbing or floor plan. 13k is best I have got that's me including all floor an wall tiles. Couldnt believe it!
Haha what an idiot- in Perth lads. The western state!
Take two!
Thanks Jamie- was that for Landlords Insurance or straight building insurance?
We have a 3×1 in Hillman under contract,
We settled on a 4×1 in Cooloongup in July. Both bought well under market value with a Reno, revalue and hold strategy.
Both +geared! Midland would have been nice to get into before Perth market started to run though lot happening round that end of the world; many social problems and crime but as with most areas with such proximity to the city and well serviced- the lower socio-economic problems will be flushed out over time.
As already stated. Try assess comparable sales, comparable rental return vs what you have been told it will yield and make sure they marry up.
Look at other OTP projects in the area and determine approx settlement point; Sth Yarra had 2-3 major high rise OTP apartments settle very close together flooding rental market with new stock and in turn leaving many investors with an empty wallet and vacant property each week.
Only 1 person has to pull the pin and sell there property due to the hurt factor and that sets the pace for what your property is valued at.
Added the weight of OTP purchases generally being unconditional and the developer factoring in capital growth over the build time, not to mention the backend commission that the developer palms off to the agents for a sale being added to purchase price.
My advice would be to stay well away unless you have a significant buffer to cover any short fall in the val not measuring up. If you are forced to pay more than a property is worth you are effectively backing yourself into a corner for future purchases..
Too many variables and downside to this strategy- we know first hand, we sacrificed $25k grand in deposits.
Tread with caution….
Hey Jamie,
Mate the valuation was done over a month ago- not sure what the go is
Hey Freckle,
Those leveraged below 60% which I would say is very very few of us- why would we be in dire straits should the economy fall into a black hole? Unlike shares the banks cannot margin call and expect us to add surplus funds to maintain a new LVR respective of the new market value following a significant correction can they? I haven't heard of it happening in previous market downturns.
I don't see how properties in the lower quartile of the market below the 250-300k mark in quality locations could take such a hit when population growth and housing demand in key areas continues to influence their respective pricing? With strong demand for affordable housing, low vacancy rates, population growth beyond the Aust average and significant spending by LGA's on new amenities and infrastructure- how could prices retract to the degree you forecast for a period any longer than it takes for the market to settle down?
If investors across Aust were to take a 50% hit via asset depreciation on their property balance sheet, I would assume many would just pull the pin and declare bankrupt as Joe said which I cannot see happening- your thoughts?
Wilko and FMS are bang on the mark.
High risk strategy, added to which most developers factor in future growth- ie: if the project isn't due for completion for 18-24monhs, the purchase price usually reflects what growth would have accrued so you are not paying today's market value, you are paying anticipated market value in 2 years. Hence why valuations usually don't stack up come settlement and you as the purchaser are left having to put more funds in to balance out your LVR.
Also, the various sales crew selling these places get a decent backend commission courtesy of the developer; another cost generally factored into the purchase price that you as the subsequent purchaser are covering.
Ask most of the key players on this forum- the guys that have been in the game for many many years and have accrued a significant portfolio. You will be hard pressed to find any of them using this strategy.
Should you need further proof- Just search OTP on this forum and see how many horror stories pop up.
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.
