Forum Replies Created
Hi Mario,
If you have good renovation costing software you can actually do two theoretical feasibilities for both possible situations, one including you doing the work and the other if you outsourced it, then it will be a simple task of deciding which one is more profitable and suitable for what you need.
AmandaThe best idea is to find out from your lender which valuers are on their panel and then choose one of those to get a valuation through.
I think it's a fantastic idea to renovate and it's very handy to have such a great guide (being the unit nearby) as to what you can expect to gain once you've completed the reno.
Uncertain times is an even better excuse to create value rather than rely on just maket growth.
Good Luck,
AmandaCorrect Scott! that answer is a definate MAYBE. Council consultation is necessary to establish what is permitted in terms of dwellings per lot. It may be that one has a flood zone overlay or has some other covenant or restrictionn on it that impedes building ability. Hope that helps.
AmandaHi Alex,
Christmas time can be a little tough to sell, but then again some people love to take that time off work and spend it moving into a nice new house for a fresh start to the new year. You can play on that fact with you marketing if you decide to go that way. As Jane said though, talk with your team (solicitors, agents) to find out when they would be available. The best place to start to figure out if it would really work for your situation and area is to talk to your real estate agent. Find out their perspective and sales records for that time of year in your local area, they wold know it the best I would think. Good Luck.
AmandaAs we are also in teh game of renovation education and assistance we couldn't agree more that having an expert who has been in the game for years and knows all the ins and outs is very beneficial for a renovation project. A professional does take all the emotion out, they've made the mistakes so you don' t have to and can teach you how to quickly and eficiently renovate your property. Good on you for taking that step.
It is correct that you make your money when you buy so due diligence before you sign the paperwork is imperative. Make sure you limit your search to a maximum of 3 suburbs so as not to overextend yourself. You must get to know those 3 suburbs like the back of your hand. Go to open for inspections, talk to the local agents, visit the local parks and supermarkets. Find out what houses are selling for, have sold for and are renting for. Once you know it back to front, if a good deal pops up you will KNOW it and be poised for action.
Then make sure you only renovate what will bring in more dollars for perceived value. Meaning whatever you spend must be worth more upon sale. Hope that helps a little.
Amanda
Make sure you know EXACTLY who your target market is, this should be aparent if you do good research of the socio-economic makeup of the suburb. Once you know who is most likely to rent out your property at the increased price you are after then ask a local rental agent what exactly are those kind of renters willing to pay more for. You'd be surprised how much and agent can tell you with things like this…and ask more than one agent also to get a good idea. Then figure out if the price of that update is worth it.
AmandaAs long as your budget includes such items I think it's nice for builders and renovators to include as many little extras as possible, provided the perceived value is higher than the actual value of the item, therefor guarantee it to be a profitable exercise.
AmandaHi,
There can be benefits and negatives for each. The best thing to do would be to do a full feasibility using a good software package and make sure you cost out every single part of the project. It's very hard to generalise to a point of saying that houses are better than units. Generally, building depreciate whilst land appreciates, but what if you come across a situation where it's a mortgagee sale and you get a unit that is in dire need of a renovation and there $150k to be made or more…and the only house available for renovation at the same tiem has a profit of $50k…which would you take? It's really all about the numbers for each and every individual deal. You can't really put them all in one basket.<Moderator: delete advertising>
Is this for an investment property or a property you are living in. As part of any successful investment/renovation you should do an analysis on target demographic of the area in which the house is it. Is it a lower socio-economic area, where they might be fine with ikea furniture? However if your in a higher class area it may be a detriment and the money you might save on the cost of the built-in wardrobe might be blown on the perceived lower standard of the house.
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Amanda
Great Vids. We are also in the renovation industry. <moderator: delete advertising>
AmandaHi Mixed Up,
Some people have a very strict aversion to selling properties, but if your at your limit then NOT selling can actually hinder your overall wealth progress. There is some merit to actually selling properties if you think that it will free up some capital and allow you to invest elsewhere in something that may give a better return. It is wise to do figures and check your investment returns each and every year to see which assets are performing at what level and if need be, sell the under performing assets to make room for better ones.
AmandaIs there a strong reason why you want to buy in the city? do you work in there? It historically does not provide exceptional capital growth and rental return isnt a factor as you are going to live there yourself by the sounds of it. If you don't have a good reason to live right in the city, perhaps think about buying further out with more land content. Land APPRECIATES in value whereas buildings DEPRECIATE..so if you have a higher land content in your property then your likely to see more gains.
Amanda
4 DAYS TO GO FOR OUR RENOVATE & PROFIT SEMINAR…there's only a handful of tickets left so call our office on (03)90057992 or go online to http://www.renovateandprofit.com/seminar to book.
Another tip is to get out and actually drive around the suburbs. Sometimes big land holdeers will put "Development coming soon" signs up which will give you a good starting point to ring around. Councils are also another great start.
AmandaHi,
We have some tried and tested software available that accurately pinpoints every single cent spent on any kind of real estate deal. It's a very useful piece of software that is sure to help you. Check out http://www.winningformulasforsuccess.com/Reno-Tools-Package.
AmandaDo a price comparison between a regular set of curtains and the aluminium shutters your considering and see what the difference is – if it's $1000 (for example) – that could be two weeks of rent. Best thing to do is ask local real estate agents and rental agents if they think its worth it. Would you recoup the cost in increased rent? How long before (if at all) that item will return a profit…all good questions to ask yourself.
Amanda
Renovating for Profit is a time-tested way to make lump sum profits AND to increase rental return. If you buy correctly at the beginning (underpriced property) in a solid area and then add valule by renovating you can increase the rental return which can possibly turn a negatively geared property into a positively geared property.
Amanda
Hi Everyone,
Tomorrow is your last chance to purchase discounted tickets for the July 10th Melbourne Renovate and profit seminar. Visit http://www.renovateandprofit.com/seminar to book tickets.
Amanda
I think you should try to get the extra $3380 as every little bit helps. Pehaps ask your company if they would pay for rental money if you were doing a "rent to buy" property rental. If they say yes? Then just do up the paperwork as in a typical rent-to-buy deal.
Amanda
