Hi guys,
Is anyone done a reno in Sydney lately?
Is it still doable in today’s market?I spent weeks searching full time for the renovation project – and to be honest I can’t find an interesting deal. Well, I found hips if interesting projects – but they all are so-o-o-o overpriced!!!
There so many renovated properties on the market with the similar price range us non-renovated – it’s just doesn’t make sence!
The numbers after reno just don’t add up (and this is taking into account that me and my partner are run a painting company and we can do most of the work in house and for a minimal cost)
Every time I try to negotiate the price wit the RE based on renovation budget – they say ‘Oh, this house not for a quick fix’n’sell deal – it’s for someone who wants to fix it and leave in for few years…’
Why would I do that is I can get the renovated property for 50K chipper and don’t have to go through trouble of fixing it!
Are there still real renovation deals left in Sydney or around?
Or I’m wasting my time?Cheers
Lesia
[evo]
http://www.vmstreamline.comHi Lesia…
I think it’s fair to say that overtime (especially in capital cities),
the margin between renovated and non-renovated has reduced significantly.That doesn’t mean that it is not possible to create lucrative deals…
Over time, markets change… that’s inevitable…
We can’t change the market,
but we can change the way we approach it.It’s amazing the way the media portrays the current Sydney market…
“A rental crisis”…. (they don’t say the rental market is booming)
I think it’s fair to say that if you can incorporate that into your approach with Sydney property… a few more opportunites exist.Rental crisis + small affordable property, can = neutral to +ve ppty.
It seems that the demand for rentals at the ower end of the market is quite strong…
With a splash of paint, a few light fittings, some new tiles / carpet / sanded back floor boards… SOME of the one bedders / studios close to the city can return pretty good yields.If you’re looking to onsell them… you might struggle with cap growth, plus you’re subject to pay more CGT if you sell in the first year… Why not chase a good rental return… Remember if you can get a neutrally geared property in the inner-city over the next few years… the rental return and capital growth will only increase.
I hope that I’ve been able to add atleast one thing to work on.
Happy hunting,
Anthony.Thanks Anthony,
That was really encouraging.
Makes a lot of sense.I’ll investigate the small apartments and I’m also looking today at share housing possibilities.
If there‘s something on the market – I’ll find it!Cheers
Cheers
Lesia
[evo]
http://www.vmstreamline.comLesia,
i dont know what your strategy is, or budget, but there is a great oppertunity for renovations in Sydney granted if you have $1 million or more to invest.
The most basic formula that still applies in the Sydney market is extensions, try to find a house that has adequate space for an additional bedroom, or alternativly find a property where you can move some walls to reconfigure the space. Apart from that the other great money spinner is subdividing, with the only issue being that this pratice is becomming harder and harder to do because of supply shortages.
You will find that the easier the property is to do the more you can expect to pay. Otherwise keep looking, as i see oppertunities bout every 3 months that are a real go’er
Young people have experience as well
Lesia,
i dont know what your strategy is, or budget, but there is a great oppertunity for renovations in Sydney granted if you have $1 million or more to invest.
The most basic formula that still applies in the Sydney market is extensions, try to find a house that has adequate space for an additional bedroom, or alternativly find a property where you can move some walls to reconfigure the space. Apart from that the other great money spinner is subdividing, with the only issue being that this pratice is becomming harder and harder to do because of supply shortages.
You will find that the easier the property is to do the more you can expect to pay. Otherwise keep looking, as i see oppertunities bout every 3 months that are a real go’er
Carl
Young people have experience as well
You must be logged in to reply to this topic. If you don't have an account, you can register here.
