Hi All,
Let me know your thoughts on doing reno’s and whether to avoid them in particular parts of the property cycle. Like for instance when you think the market might be peaking? And just your thoughts and/or experiences of renovating for profit at different points in the property cycle.
I would like to do my first one soon, currently looking around in WA and still deciding if it is a good strategy for the current booming market in WA.
J
Hi there,
I am based in QLD, I have one investment property and am looking to get another to renovate and rent/on-sell. I thought this was a good question with regards to how the current market is with regards to renovations.
Even in an up market there are opportunities to find a bargain but I guess you possibly limit your profit potential?? I don’t think QLD is booming like WA but it hasn’t peaked. I notice Steve’s advice on waiting till the budget and current interest rate hike settle’s down. I will take the time to research I guess, but would be interested on other members thoughts.Cheers,
Dyce
In the current east coast market reno’s are working. It is a market still to hit bottom. WA and boom? Do you need to value add in a boom? Maybe a coat of paint? Hitting the top of the boom? If you think you are near the top it might be time to look at another market or just hold off for a bit.
Dale
Its hard to tell if Perth is reaching its peak. 3 mths ago i passed up properties that i thought were overpriced (they sold at full asking within couple of weeks). And now those price ranges are long gone with people paying much more for the same type of property and they are selling within hours/days!!
Will keep an eye on what comes up in Perth but in the meantime I am exploring options in Brisbane.
I think the answer to your question depends on whether you are buying to reno and then sell, or to hang on for the long term. I am a buy and holder of property and use them like building blocks to buy the next one. Have about a dozen at last count. I dont know if I would be doing a major reno at the top of the market when demand is high if I am going to keep the property. That seems to be the time to make plans, so that when the heat goes out of the market you can do your upgrade and be in a better position to attract tennants and maintain the $ rental amount. I dont think a reno is wasted at anytime. Sometimes it gets you a better price when you sell and sometimes it gets you a better tennant and an increase in the rent. Eventually you get out of it what you put in…if you don’t overcapitalise !
Hi Peter,
I wanted to reno and sell to take advantage of the market at the moment but taking notes from your comments, I think I will need to build into this strategy the possibility of holding if the Perth market reaches it peak and slows before I come to sell.
Like you say, if i dont overcapitalise I should benefit through increased rental yield and/or value. Thanks for your view, it makes sense! [exhappy]
As an experienced renovator, any advice on top tips or traps?
J
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