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Have seen a few of those reno spots on ACA...those Reno blokes etc. with people doing home renovations as a career.
Has anyone made the move and done this as a full time thing? Can you make a good living out of it?
I have heard from some the best way to do it is to do the real quick turnaround renos...make cosmetic changes and then offload.
Have heard from others the best way is to renovate, then rent out and use the equity from the improved value to fund further renos.
Any thoughts?
A friend of mine does it, does OK does about 3 a year so you have to be on your toes. I asked him about keeping them for over a year so he didn't have to pay tax but he prefered to pay the higher tax and have the quicker turnover. your probably less at the mercy of a fluctuating market.
I have thought about it but the experience I have had doing my own place has brought me to my senses.
My mate's brother has been doing this for about 20 years. He and his wife buy an old joint, spend a year living in it and renovating, sell and move on. Both are very wealthy people now, but you have to love renovating, they tell me!
Worth trying though.
Ah Woodsprite another Guy Clark fan I see.
vGolfer,
You can make money doing renos (we call it "flipping a house"). I'm a licensed estate agent and we have a saying you should bear in mind:
"You make your money when you buy the house, not when you sell it." ;)
Think about it. :)
Personally, I'd prefer to buy property, rent it, sort out the depreciation so it decreases the tax I pay and aim to never sell it. As the years go by, continue to buy property using the equity in the other properties, continuing with the depreciation/tax decreases etc and again, never selling.
Property or land always increases in value, so why sell it and let someone else get the increases in value? (yes, property has been known to decrease in value, but not that often)
cheers
Wendy
PS - general guidelines, there are always exceptions...
As well as being able to do a good job economically
You need to be;
Financially stable.
A good finance controller.
Competent dealing with authorities.
and be able to;
recognise the difference between a bargain and just a cheap house.
realistically estimate the resale value after reno.
evaluate the work & costs involved in the reno.
Do one and see how it works out
I'd rather sell than rent coz some tenants are out and out deadbeats and painful to deal with.
Quote:
Originally Posted by echnidna
I think this is the big factor,
if it takes you months to sell the property after the reno will it hurt you financially? What other committments do you have (young family, mortgage etc?)
Do you have to put your own home up as equity and risk it?
If you want to live in it while you renovate... how much do you hate moving house?
Myself and my wife considered it at one point (after we renovated our first home and made some good money on it...) but now with a bigger mortgage and a little one at home it just isnt viable and not worth the risk.... maybe one day, many years from now..... :rolleyes: ;)
Yeah from a business point of view the cash flow is crap. You need to outlay a huge sum of money prior to getting a return. Can be done (and well) but you can imagine the pressure on you if any delays occur or the house wont sell for a good price.
That asid I'd love to give it a go and would say the same to anyone else willing to take a bit of a risk.