Whereabouts are you thinking? The buy reno market varies greatly ( in profitability ) from spot to spot.

I have done a bit of this over the years. Not spousal transfers just open market sales to take profits. Spread each one out to its own financial year, 50% reduction is great. My wife wasn’t working at the time and was half owner so her bit as super low, Never ended up paying more than around 10-12% of total net gain when her and me were averaged out. It you make lots of money at some point you will pay some to the ato – I am ok with that.

reasearchgeek wrote:

If not western Sydney, where would you suggest to look?

researchgeek – with a name like that I think you will do well!

There are loads of options to consider outside of Sydney. They differ widely depending on the population bases, economic activity, growth drivers and stage in the property cycle. You need to think about your long term goals and work backwards. Ie Positive CF is great, but it might be that manufactured equity is your immediate key to multiple purchases. These may or may not be mutually exclusive.

If you haven’t seen a good broker (like Jamie above, he is one of the good ones) then you need to do this and also spend some time thinking about the kind of portfolio you actually want, then choosing individual properties becomes easy.

king-co wrote:

I increased The height in a lower room that was 2.2m to 2.4m by digging the floor, underpinning the footing and dropping the slab. Cost including extra drainage was about $25,000

Depending on the house either dropping the floor or raising the top is the professional way to do it. As described here its not cheap. But if you do it right, get it approved, then you have actually added some real value. Depends on your numbers and your area if it will add up.

House89 and thecrest I think you are requesting info regarding my post above? If so the mention in the above post is Metropole. The have offices in all three cities and specialise in inner city only property. Nothing in outer suburbs, but if inner is what you want, they seem to do this well. I have a friend who has used them in Sydney and Bris with happy outcome. Obviously Richard Taylor, Andrew Allen and a few others offer Brisbane specific services and are worth checking out too. Brisbane and GC appear to be at the right point in the cycle currently for investing.
If you are thinking Sydney is past its prime for investing, I agree. I am finding a lot of the Sydney investor money is also heading down the NSW coast and creating a ripple of growth, as usually happens at the end of each boom. The trick is to know what to buy and not get caught just behind it! Up to you there are a number of good options, depending on how far you want to look. All the best.

…and some of this story is included in his main (first I think) book “Real Estate Riches”. Its a good read.

The brokers can comment on specifics re which lenders treat extra rental income more generously, as they do vary. However all extra income improves serviceability. As investors we generally hit a ceiling in 1 of 2 ways. We either hit the servicing ceiling or the deposit ceiling (we max out our dsr or our lvr) when either one stops you its frustrating. If you have deposit money or equity available but are told you can’t service then yes, the simple formula is that making more cashflow (either from high yielding property, or from a pay rise, second job, extra small business etc etc) is the solution. The banks have formulas for living costs so when you earn more $ above this the increased borrowing is quite dramatic per $ earned.

Tai,

I can’t help re 10kms of the 3 mentioned cbd’s. Metropole are large and active in all 3 cities if you want consistent service. There are numerous smaller operations in each city too. If you decide to look at Wollongong cbd feel free to contact me.
But in terms of brokers I can vouch for Jamie Moore at passgo he is excellent.

Matt

• This reply was modified 9 years, 11 months ago by  BuyersAgent.

Corey and Terry’s points are valid. If you can’t resell it then it hasn’t really gained value. The question then becomes: How sure are you that the property WILL be saleable at the increased price for you to realise the gain, and in what timeframe? If you can confidently answer that and it fits your goals, then go for it. If not, walk away.

Its an area with long term potential, due for some growth just be aware it typically gets capital growth run a bit later in the brisbane and gold coast cycle. I used to have several in the B area. I still have family with a few around here and I tell them not to sell now as next 5 yrs should see some growth I reckon. You can track the median house price from highs on gc and bris down all the way and Beenleigh/Eagleby is the low point in the middle of that corridor. Plusses are it a key infrastructure corridor, yatala industrial has continued to grow, can commute to both cod’s and its closer to the beach that Ipswich. Negatives, still a big bogan element. Slowly getting population growth and diversity out of logan I have seen, probably helping the vacancy rate a bit. If you can afford a house on a big block, go for it. If you want low entry and low maintenance then by all means a townhouse but as stated by others the numbers quoted seem fair but not a screamer bargain. You should get some nice tax out of it with the recent construction, make sure you do a QS report. Scott from Depreciator is awesome if you need one done.