Hi All
I am contemplating the reno/resell lifestyle as a full time job and would appreciate some advice/BTDTs on whether this can be successful in a country town as I don’t live close to a capital city and I can’t supervise work otherwise. The market is fairly active here, but we are talking homes in the $100K+ bracket not the 1/2 million as in the cap cities! I am looking to replace my $20K partt-time income as my hubby works full time on an average income. Our town is in positive growth mode, rental is strong and constant, and price increases are steady but not exciting. I an in demand amongst friends for decorating/reno advice and work as a graphic designer presently – looking for something more active. Any tips?Hi Susie,Of course it can work in your town.In fact I think it can work better there than in a capital city.I live in a country town and started with $20000 property,renting at $100/week.Great return,no capital gain.As if I care,now I marry a city property with a home town one and they are both positively geared as far as I’m concerned.Inow have 9 properties and not $1 comes from my own pay.Ican save that towards the next deposit.Just believe it can work and it will.I believe we are in a better position than our city cousins because they still have trouble being convinced about cheap housing in the bush.Believe in yourself Susie and go forward,Mick
Sounds like you would be great at doing a reno/flip. Have you thought about removal houses? eg Here there is a house for $1500, land for 17,500 and relocation costs $30k, add 20k for reno and nothing here is selling under $100k…and they are available everywhere – there was one for free in the Sydney papers this last weekend!!Anyway, good luck!!!!!
Mike Robinson
100$/week rent on $20k property is a pretty good return. Can you tell me where the property is located please ?
Susiemac,
In the Dec/Jan edition of Property Investment mag, there was an interview with the a group called the “Renovation Kings” (also a ACA). One of the examples (& I assume that it’s also one of their specialities) was to subdivide a property. Interestingly, in their experience, when a property is subdivided, rarely does the value of the original property decrease.
Given that in many country towns there are properties with the potential of subdividing, & Hilary’s suggestion of a relocating a home, I would futher suggest that when evaluating a potential positively geared IP, that you also consider whether you can drop a 1 or 2 bedder on the back for little cost.
Food for thought & adding a new dimension.
Michael [
]Hi all,
Regarding what Mike Robinson said about the city cousins … I am one of those city cousins from Sydney. You do become conditioned to the outlandish prices commanded here, so when you go to realestate.com.au for example and can find whole houses on decent blocks of land for $100,000 you can’t quite believe it. You think they must be falling down, or beside a railway line or something. I am suspicious by nature. Secondly, you are then surprised someone will pay upwards of $150 or more a week to live there. Why don’t they just buy it themselves! (Hypothetical question – I know why some people need to/desire to) rent.
I will try not to be so skeptical about country properties. My Dad lives in Dubbo and has done very well out of an IP he had there for the last 10 years. Living proof.
Hi Newbie,I have no problem telling you where I live,I live in Broken Hill.You can buy a house in B.H. anywhere between $15000 to $400000.A good comfortable house would cost about $45000_$65000 but houses can still be purchased at the lower end of the scale and be rented for $100/week.Just remember that cap. gains are almost non-existent.Who cares?Also remember that there must be many other country towns similar to B.H.While I have the keys ticking I have to say that I’m surprised at the number of you who keep your home town secret.WHAT’S THE PROBLEM GUY’S?You can’t buy all the houses in the town .Share the goodies.Happy investing,Mick
quote:
Sounds like you would be great at doing a reno/flip. Have you thought about removal houses? eg Here there is a house for $1500, land for 17,500 and relocation costs $30k, add 20k for reno and nothing here is selling under $100k…and they are available everywhere – there was one for free in the Sydney papers this last weekend!!Anyway, good luck!!!!!Ooops – pressed a wrong button somewhere to generate a “quote” reply.
Thanks everyone, that’s given me plenty of food for thought. I wondered about removal houses but people that I know who have done them for themselves reported no end of trouble with councils. The other “if” that I have is that I got a building inspection done for a house I was interested and the inspector could tell it was a removal and advised me to steer clear because of it – so maybe it might bring down resale value? Or eliminate potential buyers?
I haven’t done the courses yet, and can’t really see myself coming up with the dough for that so I guess I’m not expecting such a good return at first until I learn the ropes. Tell me, if I do the reno/flip thing, do I need to be registered as a business or anthing? Or can I just go ahead and do it?HI, Mike. have been doing research, as always, and had noticed the great prices out there, but wonder at the vacancy factor? Do you do rentals, or wraps?
Dear Mike
RE: MIKE: I have to say that I’m surprised at the number of you who keep your home town secret.WHAT’S THE PROBLEM GUY’S?You can’t buy all the houses in the town.I buy in Mt Isa Qld. There is good rental return here. However I don’t believe that there is great capitol growth ( I am not expert on this it is my limited observations) . It fluctuates with the activities of the mining region.
House Purchased 85,000. legals etc end price 87,000 Renovations 10,000.00 = end expenses approx $100,600. Rental Return was getting $250 P/w Now getting $220 p/w, I could more then likely get more rent then this now but have super excellent tennants in for some years now and the gardening etc that they do I feel compensates and increase at this stage. I am not sure if this is a good investment or not but it is positive after all yearly costs and the new valuation gave me the deposit for the next one etc.
I would be interested to hear more figures from others to better understand the big picture.
I would be interested to see if I could do a wrap on it but I will need to understand this more in the future.
As opposed to a Unit in Hamilton Bris > its performance is poor
Cheers IsagoldHi Hilary,I’m one of the lazy investors.I have only worked with buy & hold because wraps sound too much like hard work.I’m still in the J.O.B. SITUATION and 12 hours a day is enough for me.I do concentrate on being friendly with my tenants though and have to say that they are all long term.I haven’t had an empty house in 3 years.100% in 7 houses,Ihope I haven’t put the black alley in against myself.All the best,Mick
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