i have just watched the dvd in reno toolbox and found them and the kit excellent, well worth the outlay. i did however have a couple of questions and maybe more questions to come later.
All the properties he has done have been bought under 200k will his formulas work over 200 – 300k price?
Also he mentioned that he does them all in a partnerships, he must have enough cash to do it alone by now?
What was the results of the reno and sub divide? i would love to know!
(general question)Does anyone buy blocks of land that have been sub divided especially rear blocks ?
i found some answers, here is their web site with pictures, i see the sub-divide they built a 2 bedroom house (i think) , maybe they couldn’t sell the land vacant?
One thing that wasn't mention in this toolbox was TAX?
seems i am having a mini forum of my own,
another comment,
in regards to his formulas, he says reno for 10%, so if you bought a house in outer suburb for 250k you would have 25k to do up, that same house if in suburb closer to the cbd would have a buy price for 350k then you would 35k to do up, when you would only need 25k… so straight away you get a bonus? or is it relative? cant be?
so does this mean buy closer to the cbd , if possible and use the 95% LVR to get closer to the cbd? am i missing something
i found a small catch in the financial's even though you have the repayments for the 6 mths you hold the property the bank wont lend you the money if your wage cant afford the repayments. does anyone know a way around this?
You could look at options for capitolisng the interest for a short period,meaning you don't make any payments you just have the interest added on top of the loan so the loan amont is actually getting larger each month. I have never done this though.
Hi You Lot
Ive used the toolbox resource and found it excellent. As long as you are thorough in ALL your costings and keep to budget (the 2 golden rules of reno's) then it will guide you to exactly the outcome you set yourself, unless you of course get a better sale price than anticpated.The exact same principle applies to any house be it 200k or 800k. Percentages don't change. As mentioned above by "me" if you dont need to spend 10% on the reno then the saving goes into the profit. By the way "me" (how confusing) if you cant pay back a loan then that has nothing to do with the financial aspect of this resource. The way to get around that is save your pennies. How can you afford the reno costs as well?
As far as partnerships go, this is the only way to continue investing once you have reached your lending limit so it is a very positive alternative. 50% of something is a whole lot better than 100% of nothing.
Lastly to my knowledge, the writers of the Reno toolbox are managing a portfolio mixed with renos and developments worth over 8 million, all achieved in 3-4 years, which includes 11 renovations this year. Not bad huh?
Thanks all. I was just about to post a question on exactly this topic. You've answered a few of my questions, and was great to actually see Dean's website. Really interesting stats as well.
Do any of you struggle to find properties that meet the formulae criteria. My partner and I are in Perth and we have viewed so many properties but none stack up
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