澳洲Australia property Where's the money | Sydney
在澳大利亚 I am in Melbourne. Would like to buy properties interstate. How difficult is that to manage these properties. Any advise. 评论 Do you mean manage to find them or manage as in property manager? 评论 Manage to find a good property manager 评 Hi everyone, After months of searching for my first IP I believe finally have the corage to put in my first offer. I would love some feedback Property: Duplex Asking price: $239,000 I believe it is worth $225,000 to $230,000 My Offer: $218,0
Yesterday I had a skip delivered during a reno to clean up a lot of junk. The guy who delivered it was very nice & started chatting. He mentioned that he had just bought an IP as well & went into detail about how he was going to buy, reno & sell to make about $30k. Heres the details:
Purchase price $211k
His profit $30k
Now with details like these, I would expect a sale price of maybe $300k. Afterall I would take into account Stamp Duty, Vendors Exit Tax, Real Estate Agents Commissions, Legals - in & out, hold costs, CGT, plus a margin for the unexpected.
His expected sale price was $260 - $270k.
The scarey thing is, that I don't think this is his first renovation as he mentioned some fellow who always does his kitchens for him. While he was very nice & I wish him success in his venture. I have to ask, "WHERE IS THE MONEY?"
I suspect some people like to "show-off" their so-called prowess to sound impressive.....
It also stems from those TV shows... buy, paint, add a kitchen and sell. Big numbers flash across the screen showing the profit made in 3 months. But they just happen to forget other bits like stamp duty, interest and the biggie, 100% CGT. Those things aren't good for ratings
That's if it sells of course, at auction mostly. If it doesn't sell then it often just stays empty with no income until sold. That little profit is now being eaten away day by day....
Looks good on TV and I suppose some people only find out the real numbers by experience.
The idea is great, but unless there is very good profit, seems like a lot of work and most the gross profit goes to others.
Keep and rent for few years with a good QS schedule and then sell if you need, now there's a better plan.
Mentioning a kitchen guy could just be someone who did his PPOR kitchen....
Sounds like he's about to get an educational experience.