澳洲Australia property Econonics of Renovating | Sydney


在澳大利亚 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 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


I'm crossposting this from the Finance forum as I'd like to see it get more coverage..


quote:
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Originally posted by chrisj
This our situation
We have a buy/reno/sell business and we have the business registered.
We have just finished our first buy/reno/sell and it is nearly ready to put on the market.
Purchased for $205,000 and expect to get $270,000nto $280,000
We have commercial overdraft (LOC) of $180,000 and cash deposit of $60,000 which is tied up in this property. The plan is now to purchase our next one while we have the 1st one on the market and just extend the (LOC) subject to the banks valuation of the 2nd property.
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Hi Chris,

Great question! The use of a portable loan was a great answer.

I'm also grapping with the economics of reno'ing for a living, I did some quick sums on yours:

Purchase : $205,000
Sale : $270,000
Closing Costs : $4,500 (stamp duty, loan, conveyancing etc)
Holding Costs for a 3mo reno : $3331 (6.5% for full amount)
Reno Costs : $30,000 ??
Selling Costs : $8000 (agent fees etc)

Giving a total pre-tax gain of $19,169 over 3months.

I guess my questions are, how much were you planning on spending on the reno as this is obviously the place to make the gain really kick in? Are you planning on selling the property yourself?

It would seem the key principles in making this work are (and some of these are obvious)

1. Bang for Buck out of your reno dollars. Less money spent is more money gained.
2. Shrewd purchasing, the less your purchase for, the more you keep later.
3. Speed of reno, keeping the holding costs down. Doing more per year.
4. Remarket value, the more you sell it for the more you get.
5. ?
6. ?

Can anyone add any other pearls of wisdom to my dullard thoughts? :)

Regards,

Duncan.  

评论
Finding the balance between leveraging your own skills - saving money at the expense of you commiting more time ... versus leveraging other peoples time - saving you time at the expense of you spending more money.

Might be time to come up with some mathematical models for the typical renovation project (none are ever the same, but they are all constructed of a series of similar and quite interchangeable individual tasks, which are managed in a particular order to achieve the desired result). The goal would be to try and show what tasks are the most time expensive for the cost and which are the most cost expensive for the time.

Then again, we could just ask Michael Croft :D  

评论
Originally posted by Sim
Finding the balance between leveraging your own skills - saving money at the expense of you commiting more time ... versus leveraging other peoples time - saving you time at the expense of you spending more money. Click to expand...
Hi Sim

Are you sure your not a public servant as well as IT specalist :confused:

Any reno I would do would be a coat of paint and minor things unless I pull the wallet out and get someone else to do it.

I wouldnt use time as a factor, mine is how much can my body stand to do. I would chose buy and hold with minimal work over major work needed.

bundy  

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