looking to (buy,renovate then sell) property in 3months time slots, want to spend no more than $20,000 on each renovation and make at least $25,000 profit on each. Want to know if there are companies who handle every part of a house renovation and if there are any good strategies for buyn and selln property in 3months.
A very wide question james – most builders will carry out your required range of works (however you will need to spoon feed them your scope to see if they fall within your budget).
Some things that you will need to consider are: stamp duty & legals (add to purchase cost), time on market & settlement period, selling costs (agent & legals). All of these will make it difficult to sell and recoup profits in a short period.
Thanks for your input, im looking for some kind of database where i can find and compare different builders and realestate agents so I can have the best team onside.
My strategy if the reno fulls through is either to rent it out, sell it under a wrap or live in it, as im only doin one reno at a time to start off with.
My second strategy is doing a reno over a six month slot and looking for a $50,000 profit.
sorry but you are dreaming
it takes months just to sell a property in this economy. and its very difficult to get a decent price as there are no buyers prepared to pay more for a renovated property over dated ones.
this has been discussed previously, do a search
thats odd crashy i do it all the time
Very do-able in New Zealand. I have friends who've done exactly this for the past four years, even through hard markets. If you're buying well, it shouldn't be a problem.
Remember Rule #1: YOU MAKE YOUR MONEY WHEN YOU BUY.
Vicky
Well, maybe it takes months in some places, but I'm in the Newcastle area – and I can tell you for certain – I see many properties (that are correctly priced, and not burnt-out ex-government housing stock), often sell within TWO WEEKS of listing. In fact, one property I saw in the last few weeks sold for a few thousand more than the advertised price, because it had more than one buyer fighting over it. (Usually you expect them to sell for slightly less than the listed price, when they're not giving a price "range".)
I'm with Crashy on this one, I think it's dreaming. One, maybe? Two, (three months later) would be amazing…but three or four?? and to flog them all off within that three month period, making what you are wanting, in this market? I don't think so. You'd be running around like a headless chook for starters. Yes there are bargains and yes properties are selling quickly in some situations, but in others, they sit for months. Personally I think renos are a wonderful way to make money BUT don't expect it to run to YOUR plan every three months. Things blow out, people get sick, families have problems, weather turns foul, all sorts of things can happen. Three months is a sliver of time. Yes it's great to have dreams and ambitions, and I'd suggest aiming for that goal, but not going into cardiac arrest with stress when your plans go haywire. RD
I agree with RubberduckyAU and crashy. But why dont you try one and see how it goes? The market will let you know if you are on the right track or if you need to change your strategy.
id make the plan your goal … but not the timeframe. because u never know what will come your way.
I suggest try 1 first and see how long it takes from time you purchase to time you sell and get that profit. I have done it with a partnership we managed to renovate and sell on two properties within the year.
I assume you have calculated all the selling costs (capital gains if not PPOR,edvertising,egent fee's ect ect).
You would have to sell it for a a substantial increase to even bother.Then you've got all the buying costs of the next one (stamp duty,conveyancer ect)
Sounds like a whole lot of hard work.Way to much for me and I've done reno's on my properties and continue to.
Why don't you just keep them and rent them out.Get a reval done after your reno's and use a line of credit to do more and a little portion to spend on yourself..To easy.
I don't quite understand.
Keiko has mentioned that it is possible, he is currently doing it.
Most of the rest are naysayers???
Well James i am with Keiko here. It can be done and there are peole doing it now.
However, it is hard bloody work, and you really need to be abe to do a fair chunk of the reno yourself. If you are relying on too many external trades, this is were your issues can arrise. Correct project managment is absolutely essential.
And expect big hours too. A standard work day for us is min 10hrs. However, we reguarly run to 16-18 hrs to make deadlines etc
Not for th faint hearted but it can be done.good luck Justin
Hi James,
To illustrate how unrealistic these timeframes are, think about the following:
Generally when you purchase a property (not including the time it takes to locate and agree on all terms within the contract), the settlement is generally 6 weeks after the contracts are exchanged. This basically means you have to exchange a contract the day you take possession to a new purchaser (fully renovated, I assume) in order to meet the 3 month timeframe you are talking about.
In addition you will also need to set up the infrastructure to manage the process, plan, budget as well as engage contractors and consultants along the way (for the first one anyway) required to complete the renovation.
There is no doubt that a skilled investor renovator can make money in any economic climate, however you will have to be realistic about your cash position and your ability in order to make any money consistently, let alone $25K per property on your first deal. I would be budgeting for a loss on your first few deals until your knowledge, project management ability and experience increases.
It also appears as though you are intending to outsource every facet of the process, this will ensure you don't make a cent by doing this (in the timeframes you are hoping for).
Anyway, goodluck with whatever you end up doing.
Wardy.
Dave Ward | Geronimo Finance
http://www.geronimofinance.com.au
Email Me | Phone MeProperty Investor, Property Investment Expert & Advisor, Finance Expert & Strategist
yep its deffinitly unrealistic i woudn't even try. but then again you can chop 6 weeks into under 5 weeks and if your smart about it once finance is approved in first 2 weeks you ask vendor for access to the property then you get a bunch of contractors threw giving you quotes and then organise them for the day after settlement to start work and organise that agent too. if your realy confident start work once finance is approved then she will be well under way once all has settled should almost be time for sale. and why not why thats all under way be hunting the next project down. duno but 4 houses a year is a peice of cake
Has it occurred to anyone that James has disappeared?
No response from James yet…He probably also realised that all the profits from such an arrangement constitute taxable income…
No response from James yet…
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