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WOW, i went to Steve's last seminar and not even HE, a proven, respected, self made property mogul, would dare suggest that anything is so absolute and definite!!! Scamp, are you as qualified as him to be giving advice??? Otherwise i'm guessing that yourself and a few others on here have managed to aquire magical crystal balls somewhere and in that case, i'd really like one too!!!
I think it is great to have an opinion but really, if everything in life were that easy to predict, we would all be filthy rich! I personally, am going to keep myself educated and informed and react accordingly to the market when the market changes, not to the latest blast of opinions or headlines. To me, this is not behaving like an 'idiot' (as some on this thread would like to put it) to me, this is behaving like a professional investor. Each to their own i guess!
Oh, and scamp… if there is an oversupply of property can you explain why, (in Sydney at least) we have the lowest vacancy rate ever, rental increases of 20-40% in one hit are not uncommon (yep, i have experience there!), 50-100 prospective tenants are lining up for every rental open home and renters are bidding UP, yes UP, the rental price??? Oversupply…. WHERE?!!
Hi Budgy,
I was at Melbourne too, it was a great weekend wasn't it! To answer your question, you can do quick reno's in an apartment block if the numbers add up but there are a couple of things you need to be mindful of….
You need to check your strata bi-laws and make sure you renovate within them. For example, some units don't allow top floor apartments to have floor boards due to the noise. Also, you only own the space inside the unit so if you want to put downlights into ceiling space or even run new plumbing into 'common' space like the ceiliing void, you need full permission from the strata. Some things need a full vote, other smaller things only require an answer from the executive committee. As it is only a small block, their are less people to contend with which is always good. However if its only small and minor changes, you shouldn't have any trouble at all.I did my first 2 renos in units in sydney and thanks to them, am now onto my first house. Just make sure the numbers add up and remember to include strata fees as part of your holding costs. Hope this has helped a little. Good luck
i have so much to learn
and stamp duty…. arrggghhh!!!Anrobel, i recently discussed this with my broker and he said as long as you have a 2nd property to secure the LOC against then it isn't a problem. Haven't had first hand experience myself though so i'm not 100% sure of the finer details. Definately worth a shot though
What an AMAZING opportunity! Have you considered signing contracts yourselves at the 600k asking price and then onselling it for 800k within the settlement period? Have the 2 settlement days on the SAME date and you effectively have a "NOTHING DOWN DEAL". If you are concerned at all about the 'buyer' committing, give yourselves an OUT clause in the contract. Have a cooling off period and if you can't secure your 'buyer' within that time, simply exit from the contract. It seems too easy, am i missing something???!!! But seriously, if this is a 100% genuine situation, take the bull by the horns
, a hefty profit awaits! Please let us know how you go, it would be great to know that those deals still exist, even if it is just because of 'who you know'! Good luck Hi again! James007 i'm in Sydney and use laws auctions at whetherill park for my tiles and vanities. Ebay has been great lately too for shower screens and fittings. $10,000 is not a HUGE amount for a bathroom but you can definately do it cheaper. Plumbing was my biggest cost on the 2nd job as i had to move a lot of the pipework. Nami is correct, the less you move the less it will cost as the rest is just cosmetic. Nami, its not that hard to demolish a bathroom at all. Just be very careful of plumbing pipes and electrical wires when removing the tiles with any type of machinery. I'm an average 30yo female and i have completely stripped 2 now, screed and all!!! The only thing i needed help with was the very heavy cast iron bathtub but other than that, i did the lot myself. Also make sure you wear a good dust mask, gloves and goggles. Respraying the bath can be a good alternative too as it means even less plumbing. But be aware that to spray still costs around $500 so make sure you get a certificate of warranty as i have friends who have had a bad experience with it. Basically, if you shop around, the fittings and fixtures will be the cheapest part of the fit-out and the trades will be the most expensive. I'm just about to do my 3rd reno and this time im redo-ing one bathroom then completely building a new 2nd one so that should be interesting! In the meantime, if anyone wants b4 and afters of my 2 previous bathrooms for an idea of cost and quality, PM me and i'll be happy to send you some pics
thanks for the replies, i thought that was the case, it may be different in the USA
not easy to make money in this country without the government taking a massive chunk of it…. still, will not give up Hi Chook,
I have just learnt from my mistake… i just renovated a property which i had tenanted for 12months before moving into it. I lived in it as my PPOR whilst i renovated and thought that i would not have to pay any CGT… but alas, i was wrong!
If you plan on turning it over quickly, it needs to be your PPOR from the day of settlement which means either living in it or having it vacant whilst doing work but NOT having tenants. If you put tenants in first you still get a CGT discount, for every day it was tenanted and you match that period of time living in it you get a pro-rata discount… for eg…. My place was tenanted for 12 months. I then lived in it for 6 and on-sold it. I get 50% CGT discount for holding it 12 months then i get another 50% off that because i lived in it for 50% of the length of time it was tenanted. I hope this hasn't confused you but i was unaware of this rule until the visit to my accountant. To be 100% sure of all taxes you would have to pay i would strongly advise that you tell your accountant what you plan on doing so they can fill you in, after all, its their bread and butter! Hope this helps
Hi Carlin….
Please be wary, whether or not it is legal, i had an agent exchange a contract i had signed almost a week after i was told i was out bid.
Yes the agent was dodgy but this is what happened… the agent REFUSED to submit any offers to the vendor unless it came in the form of a signed contract accompanied by a 10% deposit. Yes, this is definately illegal practice. After many arguments with him i made my decision that the property was worth it at that price so i did as i was asked after being told by the agent that my offer would definately be accepted. Next day (after much stuffing around to get everything in order including the 10% bank cheque) i was told sorry, you've been outbid. I was furious and refused to raise my bid. I thought that was the end of it until the weekend passed and on the following Tuesday i received a call from said agent saying, "Congratulations, you just bought the unit!" Not only had i talked myself out of the purchase but i was totally unprepared as it was now 5 days later. I had to continue with the purchase which thankfully, turned out to be my 1st successfull reno project. However, i was still unhappy with the way i had been treated. I complained directly with the agent's proprieter and got laughed at (me 27 year old single girl, him 50's male) and then he proceeded to invite me to the snow WITH him… !!!! His employee now works elsewhere but is still a real estate agent. I don't want to be unfair but for anyone who would prefer to steer clear of these people, this experience was had at Remax Prestige in Randwick NSW and the other agent now works at Ray White Randwick.
If it was me, i would definately be retrieving the contract so that you can stay in complete control. These days i only allow my solicitor to exchange on my behalf too which stops this from happening. You never know, if the other buyer drops out again, you might be in a position to submit a lower offer? Good luck
Hi pinknic20,
I agree with Scott, it can cost anywhere from $5-$50k depending on your taste, style, re-plumbing and amount of labour you want to contribute. My biggest expense on the 2nd was the plumbing work to re-route some plumbing and the 'built-in" toilet which caused my plumber a bit of grief. I have now renovated 2 bathrooms, the first costing under $5000 including pluming and washing machine and the 2nd cost under $10,000 and both looked fantastic and expensive on completion.
The way i achieved this was primarily 2 ways…. by buying the majority of hardware, (tiles, tapware, shower screens, vanity) at auction and then by doing the 'demolishing' myself. It is quite easy to strip the bathroom yourself. Invest in some good gloves, goggles and dusk masks then buy a cheapish hammer drill from bunnings and go for your life on the tiles. Just be aware of plumbing and electrics when doing so. I purchase the majority of tiles from an auction house. I managed to buy 100×100 glass tiles for $36/square m which retail for anywhere between $100 & $300/m at a tile shop. Most people will tell you to be wary of auction tiles however a lot of the time the stock is still 1st quality its just over supply or liquidation so you can pick up some great stuff. Same with vanities. I purchased a vanity for $250 then when i got it home and unwrapped it, it had a harvey norman sticker inside for $1900!!!
Long story short, if you want to save money, do the easy (but hardwork) labour yourself, scout auctions and internet such as ebay for good quality bargains and design it yourself. If you have the money, hire a professional to do the lot!!! Places such as domain, harvey norman, reece etc can do obligation free quotes and give you design ideas in the process which can also help. Hope this helps…..
DraconisV wrote:It seems like what I am proposing is fraud, it doesn't make me feel good that this is the truth. hmm, if they can't catch me(small chance) then why not give it a go. quote] What you are proposing, have no doubts, IS fraudulent. You are on a website promoting your intentions to use the FHOG in a way it is not supposed to be used!!! If you think there will be no consequences if you get caught and all you will have to do is pay back the $7000 then think again. A friend of mine got caught last year for not living in his property for the required 6 months. He not only had to pay back the $7000 but also the stamp duty (did you think about that?) of around $15,000 and THEN he had to pay around $25,000 in court costs. BUT IT GETS WORSE…. He now has a criminal record….. for LIFE. How does that sound?Did you realise that if your first purchase is an investment and you dont live in it, you may still be eligable for the FHOG when you choose to buy a PPOR? I'm not sure where you're from but there was recently an article on FHOG fraud in the Sydney Telegraph. They are pursuing more cases than ever and prosecuted around 6000 people this year. (Not exactly sure on the exact number but pretty sure it was around 6000, someone please feel free to correct me if i'm wrong)
Sorry to be the bearer of bad news but you are blatantly flaunting your intentions to do something illegal on a free investing website. I'm sure many of us are NOT here to find out ways to rort the system, rather to succeed without having to stoop to those levels. I know its hard getting a foot in the door, but most of us are in the same boat. And won't you feel that much better succeeding without having to always wonder if at some point you are going to get caught????
, a hefty profit awaits! Please let us know how you go, it would be great to know that those deals still exist, even if it is just because of 'who you know'! Good luck 
not easy to make money in this country without the government taking a massive chunk of it…. still, will not give up 
What you are proposing, have no doubts, IS fraudulent. You are on a website promoting your intentions to use the FHOG in a way it is not supposed to be used!!! If you think there will be no consequences if you get caught and all you will have to do is pay back the $7000 then think again. A friend of mine got caught last year for not living in his property for the required 6 months. He not only had to pay back the $7000 but also the stamp duty (did you think about that?) of around $15,000 and THEN he had to pay around $25,000 in court costs. BUT IT GETS WORSE…. He now has a criminal record….. for LIFE. How does that sound?
