Who’s Renovating in Perth?

I know a great painter, takes pride in his work and good price.
Looking for a good broker and lawyer in Perth. Anyone know any?

Hi Jye & Tahnee,

Haven't got the email yet – my email is [email protected]

Thanks,

Kate

Hi guys,

Best of luck with the renovate and flip project. As well as working at Momentum I renovate/develop property on the side to help generate further income to feed into my passive portfolio. There is a group of property investors that meet on a monthly basis, you might like to attend. http://www.propertymeeting.com.au

I can't stress this enough, but if you're looking at flipping property make sure you are 100% confident on your numbers. I always say to people that you should work back from a sale price. No matter how nice the renovation is, the market will dictate price. Unfortunately, renovating property is less about colour selection and making the property look nice,  it is more about tight budgets,  strict deadlines and negotiating well.

Whenever I look at a deal I use the following feasibility:

End Sale Price: $400,000 – Based on other properties renovated that have sold using Pricefinder/RPData

Buying Costs: $12,000 – duties and settlement agent costs

Holding costs: $15,000 – 9 months of interest at 5.5% (because you're still be paying interest  after it sold before settlement)

Renovation budget: $30,000 –  costings based on trades doing the work

Selling Costs: $20,000 – agents fees, marketing, and settlement fees

Your Profit: $30,000

Purchase price: $293,000

So the very basic rule of thumb is buying a property for $100,000 less than your end sale price.

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