Hi people,
I am going to do Cherie Barber’s renovating for profit course and will start my first project very soon. I was wondering if there’s someone in my same situation so we can meet and potentially do our first project together. We can reduce the risk and leverage from each other meanwhile having fun making some money together. If there’s anyone interested, please contact me.
Thanks and talk soon! :)Whats your skill?
Hi, I have done many renovations in Perth in the past and now not entirely convinced that the current Perth market is a good “reno market”. Two weeks ago, the Saturday west newspaper printed an article from Macquarie . Which compared 6 houses on the market now to when they were bought in 2007 [the peak of the perth market]. The worst was a house in Subi which they are asking 140k less than they paid for it in 2007. Perth has a boom / bust market. Not sure if Cherie’s renovation course is adaptable to this as the NSW , QLD, VIC is much broader with greater opportunity.
Hi Rob,
I have to disagree, A soft market is the best market to be doing buy and hold renovation The trick is to find a motivated vendor and purchase well below market value. In the GFC I purchased a property in Edgewater for 100k under initial listing price, Held it for just under 3 years and sold it for 165k more than I paid for it after a 20k reno.
I have just started another project, brought 60k under market. Simple reno and subdivision. I will pocket 50k on sale of the block after the return of all of my purchase, renovation and subdivision costs. and still have a house that Is worth what I paid for it. The kicker is that in 2-2.5 years the block is a duplex or demolish and triplex site.
I have another renovation property on my radar, that I want to pick up for 350k. The vendor is highly motivated and needs out now. Post a very simple reno its worth 450-470k and is likely to be a duplex/triplex site when zoning maps are released in 4-5 months.
Yet another that it my radar today. I’m still doing my numbers, but it looks like at the end of the day you would have all initial capital back by a revalue and a cash flow positive property due to the granny flat and be in a very high capital growth area.
In a hot market, there is too much competition, and you are more reliant on capital growth to get you out. In a soft market, with little competition, there are good opportunities.
Well guys, I haven’t done any renovation yet, so I’m clearly not an expert in this topic. However, I have to agree with David, a soft market must be great to find properties under market. Actually I’m going tomorrow to see Dominique Grubisa who teach people how to buy property at up to 10 – 30% discount so you can profit the second you buy. My idea is to combine both strategies (Dominique + Cherie). Now, my question is: Does it really matter in what market you buy? When you do renovations, you pretty much buy and sell in the same market, isn’t it? And, if the idea is to hold the property, well it sounds like good news as the market will eventually correct. But as I’ve never done it before, there’s a good chance that Rob is spotting things that I don’t see. Thanks for the heads up. Appreciated.
-
This reply was modified 9 years ago by
Covelli00.
I think if 2 can partner up and buy 2 x 600-750sqm blocks next to each other its going to work with low to medium zoning changes.
There are some average houses in Coolbellup. They look like borderline for renting. Would need a reno for now.
Some locations are now getting rezoned R40 and R60 are on council information.There is a Roe 8 Extension approved, this would support higher density!!!
I have bought houses before, but could not pull of a subdivision and then build.
Great to hear from you David, I agree with your Buy and Hold strategy , with a view to develop in a couple of years. Have done a couple of these with the same success. I got the impression CovelliOO was talking about flipping them quickly and repeating the process.But holding costs ,closing costs ,sales commission , stamp duty. They eat into a fair amount of profit.
Of course, using your services to source a property well below value can help to eliminate most of this.
Have heard of Dominique Grubisa , I think it take a person with a special personality to do deals with people in unfortunate circumstances . Not for everyone.
Hi, I am based in Perth and would like to meet up and discuss in person..
I have a few properties now and various courses / techniques under my belt. I’m now looking to grow my network of likeminded people & leverage off each others knowledge, so more sophisticated deals. Will PM you-
This reply was modified 9 years ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
