澳洲Australia property Thinking of Renovating | Sydney


在澳大利亚 Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int


I have recently been made redundant after 18 years in the IT industry. Although this was a huge shock, I am looking on the bright side and seeing it as an opportunity to do something different with my life. The idea of returning to a permanent office job has no appeal to me at all.

I have been thinking that now might be a great time to buy, renovate and sell/hold properties as I certainly have the time. I would appreciate your opinions on whether you think this is wise, without a job what my chances of obtaining a loan would be, without a job.

I would love to hear from anyone who is renovating full time especially on how they got started.

Thanks,

Brad  

评论
Brad,

Been there, done that.

Happened to me at the end of 2001. Basically told the board to make me redundant because they were not going to proceed with the project I was working on. Took a long break, time with kids, etc then mid-2002 began the renovation biz full-time.

You have to know your markets very well Brad, there's little price difference between reno/unreno places in some areas so you have to make sure you do heaps of research.

Also if you've never bought an IP before (we had a number already) you'll find this is a major learning curve just to get them past the line.

Remember, key issues you will have to confront are structuring, serviceabiliy & being prepared to learn & do anything required to get a place up to scratch - paying others for the grunt & dirty work kills your profits in most cases.

Cheers,

Aceyducey  

评论
Brad,
You might read up on anything you can find on Geoff Doidge & Paul Eslick, they're a great source of info.
Clint Eastwood had a great line in an old movie 'A man's gotta know his limitations'.
It's important I think for you to be able to visualise what you can do with a certain property ... thouroughly assess what needs to be done & get an accurate idea of your costs for anything you can't do yourself.
I like old blocks of flats, or old houses converted to 2 or 3 flats.
If one's vacant you can reno it, & you've still got cashflow from the other one or two, so your reno time isn't under as much pressure as with a single dwelling.  

评论
Know how to estimate and budget - and know it well.

A simple bathroom renno can quickly go from "I reckon $1,000 will cover it" to "wow, that cost $5,000" pretty damn quick - and you have to fund this!

Know what you can do, so you know what you have to pay others to do. Dont forget the little things - they add up damn quick. Know your prices for supplies. Know how to pick faults in a building - good ones (you can fix easily) and bad ones (when to walk away).

I looked at a house recently. Agent said "Needs restumping, probably around $3,000." Promising house, needed work to bring up to scratch though.

Looked out the back, and there were cracks in the brickwork - or should I say canyons. Brick work had moved in one place around 10cm away from window frame. Traced the movement to the other end. Basically, needed to rip off 1/4 house brickwork and re-do strip footings, then rebrick. Told the agent "No thanks. You've got more than stump issues here. Footings have failed and I'd guess around $10,000 to $15,000 to fix just that."

Caught up with agent a 2 weeks later on another house. Said they had quotes - $12,000 to fix brickwork alone. Still needed stumping too.

As I said - You need to know how to do this, or get someone who can. Otherwise you could end up going backwards pretty quick.

I do wish you the very best luck. Do your homework, and if you like renno's - go for it.

Cheers,

Simon.  

评论
Hello
I have a fulltime job in IT , and like most others in this industry am fairly nervous about the security.
I have often thought about going into fulltime renovating. I have spent some time renovating a property in my spare time . I am more of a buy and hold person, and when renovating with this strategy, I think it is very hard to loose, however obviously this strategy cannot be used when renovating full time.
In my opinion you would have to be bordering on legend status to make money from renovating then selling, take stamp duty, buying costs, holding costs, selling costs, and possibly CGT out of the profit, and it sounds pretty difficult to do be able to make a net profit.
However as I have learn't the job satisfaction is like nothing else. most weekdays I struggle to get out of bed by 7:30, when the weekend comes, Im up at 6am keen to get up to the house, on weekdays when I knock off my day job (@5pm), I have a 1 hour snooze then work on the house to around 1 or 2 am every day.
I never have to pretend I am busy, and all of the hours I spend renovating are productive. Instead of looking at the clock thinking "still 3 hours to go" I look at the clock and wonder where all the time has gone.
A question to the people who do this full time ; Is it the mid to high end of the housing market where the money is made from renovating? That would be my guess as I would have thought there was more room to improve, perhaps a suburb where the price of a house can be $250K in the same street as a house for $750K (Adelaide market).
Is it possible to make money from renovating in all cycles of the property market,?
Are there any Adelaide people who renovate full time on this forum?  

评论
Originally posted by adaran01
A question to the people who do this full time ; Is it the mid to high end of the housing market where the money is made from renovating? That would be my guess as I would have thought there was more room to improve, perhaps a suburb where the price of a house can be $250K in the same street as a house for $750K (Adelaide market).
Is it possible to make money from renovating in all cycles of the property market,?
Click to expand...
Firstly, we find there are opportunities at all levels of the market. The trick is finding properties that are in the 'too hard' basket, but only require cosmetic work (and I consider non-structural walls as cosmetic).

If you can get a return of 3-5 times your renovation investment then you're doing well. At the top end it is possible to get much more than this, but prices can also be more sensitive.

The real key is to find areas where renovations are rewarded - unrenovated places sell for substantially less than renovated ones.

I think it is possible to make money from renovating at all stages in the property cycle. However, there may be better ways to make money at certain times & I don't think many people out there renovating would turn their noses up at other property strategies if the return is there.

Cheers,

Aceyducey  

评论
Hello AceyDucey
Some of my major weaknesses I have found while renovating so far is the following.
I can never find the tool that I need, and waste considerable time hunting for a screwdriver or drill for example that ended up being 1/2 a metre from where I was originally standing.
Do you have a strategy for organisation during a renovation?


I tend to buy small low cost items from stores that are close, rather than travelling to a location where I know they are cheap. Only problem with this is lots of small items soon add up?
Do you have a system in place for purchasing supplies ie; a rule that you only go to the hardware store twice a week?

I spend a fair amount of time getting everything I need, then getting back to the house, and realising I need something else to complete the job. Is there a way to minimise this sort of time wastage, without a brain transplant?

Do you have a detailed plan before you start ?, and do you stick to it regardless?

My biggest weakness is looking at a job, and thinking this will take me 4 days to do, and then actually taking 3 weeks or more to complete the job. I like to look at my renovations optomistically, however this could be a substantial disadvantage.

Do you ever realise that what you have done, really does not look that good, or has not worked? when faced with this do you bite the bullet, and start over again, leave it be, or do what I have done in the past, close one eye, look at it sideways, then bite the head off of anyone who is critical about it?

Do you record your time, and the jobs you have undertaken?
at the moment I have a rather large box of crumpled reciepts, and thats the extent of my organisation. The particular renovation I am undertaking started by painting a garden ornament one sunday afternoon after the tenants moved out, and I have just kept going from one end of the house to the other.

In the past I have spent days doing a certain job only to have
no-one notice, I then put 2 $3 plaster thingies on the wall, that took me 5 mins, and everyone rabbits on about them.

Any other advise would be appreciated

Alot of these things probably seem very basic, however these are the things I have trouble with.
Regards Adam  

评论
Adam,
I like my tool belt & a BIG lockable steel box.
Every tool I'm using is either hung off my belt or in the box.

On bigger jobs I stand a scrap of gyprock or something against the wall in the room I'm working on & write everything to do & everything to buy on it. I plan knock off time for 8:15pm, gives 15 min to drive to Bunnings with 1/2 hour for shopping (so I don't spend 2 hrs wandering around drooling).

Set up an account @ the hardware store to make the accounting easier. A mate uses a separate credit card for each property, bit expensive I think.  

评论
Hi Adam!
Here are a couple of stategies I use to make sure our renovations look good!

I look through popular interior decoration mags to pick out ideas that are cheap and effective as well as to get a feel for which colours are in.

I try to visualise everything in my head before I start so I know how it will look. I never start and see what happens, I want to know how all the details will work before we spend any money. When we do gardens or kitchens or knock out walls, I like to draw the design up on graph paper.

I keep my eye out when I'm about for decorating/renovation ideas. Cafes and restaurants can be good places for picking up ideas on how to make something look good on the cheap.

I try to use the concept of reincorporation. ie. use the same elements, colours in more than one place so the house looks 'tied in.' For example only use one or two different kinds of floor coverings. Or use related colours for the feature walls in adjoining rooms (eg. lounge & dining) I also like to tie the colour scheme in by having one wall colour throughout the house (neutral) with feature walls in some rooms, all ceilings and woodwork white.

I don't try to be too creative. If I find something that works, I'll use it in the next renovation.

Do things cheaply but not cheap (ie. don't spend much but make sure it looks 'professional')

Find someone who has an instinctive feel for what looks good (eg. someone who's decorated their own house well.) and trust their judgement.

Also, a good colour consultant can be invaluable.  

评论
Thankyou for the replies  

评论
Adam,

If you know any tradesmen ask them how they orgainse their tools. A tool belt is a must if youre disorganised, ive never liked them due to the weight around your waist. A friend of mine wears one with everything but the proverbial on it and doesnt mind it.

Only have near you what you need for the particular task you are doing, this will cut down on clutter around you.  

评论
Originally posted by adaran01
Hello AceyDucey
Some of my major weaknesses I have found while renovating so far is the following.
Click to expand...



Adaran,

To answer your Qs, I mostly follow simple but practical guidelines :)

1) Put things back where you get them from once you have finished the job. I have a place for every tool (in a tool box or location) and return them to this location once done. It's not infallable (particularly when other people are involved in the reno) but it helps immeasurably. I don't like tool belts - they have all the tools you don't need, but no room for the one you do need. Also they get in the way :)

2) Make a shopping list. Add items as you think of them (don't wait until later - you'll forget). Once you reach a natural stopping point or cannot continue without something on the list, go and shop - it's a good break from working anyway.

3) Ask for discounts at shops. Most stores have tradesman discounts - even if they don't if you are buying in sufficient quantities they will cut the price, but only if you ask!

4) Type every receipts into an accounting program that keeps track of expenses - how else do you know if you are over or under budget? We also use a separate credit card for renoing to avoid confusion with personal accounts.

5) Plan what needs to be done, then prioritise and order the jobs. I use MS Project cause I've used it in the IT world for years, but starting with post-it notes & a wall/table is just as good. Write each job on a separate post-it note then order the jobs by the ones they depend on or are dependent on. Highlight the priority jobs, then write it all up on a sheet of paper so you know which tasks need to be done when.

6) Timing jobs is important, but hard the first few times. If you are bad at estimating how long tasks will take, you just have to leave more time in your calculations the first time, then record how long it takes for reference in planning next time.

7) Presentation is everything. I'm a perfectionist by nature & so spend hours on a task that only I will know whether it's been done properly or just OKly. You have to take into account how each project will impact on the presentation of the property and be prepared to be hard on yourself so as not to spend too much time where it won't add value. Consult with people who have good design sense for their views on certain projects - they are good at picking up things that you should do that you may have overlooked and look at design guides occasionally for new ideas & twists on old ideas. Other than this, it's not always possible to figure out what people will look for, so trail & experience is the best option.
 

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...