Hi All,
Great reading.
My question to all is if buying older unrenovated homes to renovate and sell is still worthwhile, particularly in this market, and have the potential to make money or are the costs (or profit) already reflected in the purchase price?Gday
I believe there are oppotunities in any market. I don’t think you can go and buy any old and tired property at list price and expect to make money by renovating it. BUT if you scour your investment area for the real deals (those with the hidden potential) and start making alot of offers you will buy some great projects. I look for property that is about 15-20% below the median price for the area and then check them out to find out why. If it’s just cosmetics and some lateral thought needed, then I’ll put in an offer.
Best of luck hunting, they are out there.I agree with Rosco.
I have done 3 renovations to sell now, and have done well, but so has anyone in inner Melbourne,
without all the hard work.I know 1/2 a dozen people who have done badly, or say they have made say $20,000 in a period when capital growth on the property would have been
say $40,000 ie, they have lost $20KMy suggestions for what they are worth would be:
-buy under market value (possibly an unpleasant looking rather than a rotten property)
-get as many of :re-roofed, re-stumped, replumbed and rewired as you can in the initial purchase.
-then paint, polish boards, add french doors and a deck, fill the garden with flowers and sell well.I have friends who have done very well on projects where people started renovationg the INSIDE of the house, lost heart, sold a very ugly looking home, that basically only needed a paint and landscape.
Good Luck
IBquote:
I agree with Rosco.
I have done 3 renovations to sell now, and have done well, but so has anyone in inner Melbourne,
without all the hard work.Did you do the renovations yourself or did you employ someone?
Thanks,
Arnaldo
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