Congratulations again on a great site.
I’m looking for some feedback on renovations. I’d like to buy an investment property around $155-180,000, probably within 3 travelling hrs of where I live and put in about $10,000 into renovating it. I’ve heard that all this does is make the property sell faster rather than increase it by more than the money spent. Has anyone had success in this as I’m looking at doing this sort of thing as my job (due to high unemployment in my region) and trying to at least make a wage out of the profit.Hi Banner,
You would need to write a book to answer your question, is it possible to make a salary out of renovating, the answer is and then some. But its also possible to bet on a 10 to 1 shot at the races and win, the key is education and knowledge. You need to know the market, you need to know your costs all your costs and it all needs to be planned, so that there is no guess work. You need to know your end result before you even start. You need to know the answes to all your questions and all your what ifs with a high degree of certainty, if you dont then your just gambling and your chance of success is the same as betting on a horse. I strongly reccommend that you educate your self before you delve in. I suggest you have a look at financialsuccesssystems.com at read about the renovator kings Geoff Doidge and Paul Eslicks.
Good luck in your investing
regards JohnD
ps its got nothing to do with luck but everything to do with knowledgeHI Banner, we wanted to sell a house in Carina in Brisbane, the agents said we couldn’t expect $150,000 for it…it was a solid 3 brm home, but very daggy…we wanted $180,000…we decided to ‘do it up a bit’ and go for the $180,000, our gut feel as to what it was worth…we spent $13,000 and lots of hours (around our current jobs)…over 8 weeks…so no rent coming in in that time…we cleaned it and did an internal paint (prof $2500), put in a new kitchen and tiled the splashback ourselves ($2500 from Mad Barry’s), put new tiles in the bathroom and on the floor (Parella tiles, end of line tiles), and the loo (all timber before and bad condition), we hung plain fresh calico curtains throughout, we took up the old worn cork and got the floors polished ($2000), did up the garden at the front and tidied the garden at the back ($800), and presented the property as fresh and clean, windows very clean etc, and we got $210,000 – the market was rising at the time though, so it’s hard to know if ALL the profit was due to our improvements, but I CERTAINLY think we would have doubled our money on the improvements, ie even if we would have got what WE think the property was worth BEFORE (ie $180,000), we spent $13,000, but we got $30,000 more than what we thought it was worth, so it was hard work, but we think the extra money was worth it.
I don’t think you’d get RICH doing this…but it might be worth a go if you don’t have a better offer on the table…good luck, let us all know how you go if you decide to give it a try.
kooringal
ps IF we were to sell the home we are currently in, we would do the same again, ie new kitchen, tile the bathroom and loo, we’ve already freshened the internal paint and we’d improve the front garden again, ie street appeal.
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Congratulations again on a great site.
I’m looking for some feedback on renovations. I’d like to buy an investment property around $155-180,000, probably within 3 travelling hrs of where I live and put in about $10,000 into renovating it. I’ve heard that all this does is make the property sell faster rather than increase it by more than the money spent. Has anyone had success in this as I’m looking at doing this sort of thing as my job (due to high unemployment in my region) and trying to at least make a wage out of the profit.
[/quote]Thanks for such a detailed response…I really appreciate it and will take on board everthing you say.
I feel the more I read, browse, and research on IP’s the more I need to know. But then again, it’s all so interesting so it never feels like a chore.[
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don’t forget sharing your profit with CGT!
good luck with renovating
[8D]
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