Can you buy, renovate and then sell houses for a living?

[pottery beige]

Originally Posted by SM1DY

DO YOUR RESEARCH!!!

This is not a game.

but it looks so easy on un reality TV

[nuthin' fancy]

Originally Posted by pottery beige

but it looks so easy on un reality TV

We all know why they never go back to the properties a year later to see how they've held up.

I drove past last year's motel conversion in South Melbourne, it looked pretty shabby.

[Auslandau]

Originally Posted by pottery beige

but it looks so easy on un reality TV

We have done the Block before ..... actually won with best laundry It is so fake it is scary. Fake arguments, fake everything. People expect to order a kitchen on Monday and have it completes with stone and splashbacks by Friday. "But they do it that quickly on the Block?"

Originally Posted by nuthin' fancy

We all know why they never go back to the properties a year later to see how they've held up.

I drove past last year's motel conversion in South Melbourne, it looked pretty shabby.

Are the outside plants dead yet? Must have a sticky because I gave the outside till end of summer to look like crap!

[UberKnee]

It can be done, but if all he's going to do is manage it there's no point. To really make money on Renos you need to do as much of the work yourself as you can. He'd need to know the markets really well, buy in areas that will sell quickly, and will make him a profit. Its pretty easy thesedays to have a house sitting on the market for a year or more. So if all your money is tied up in this house and you dont have a job you're screwed. I'd honestly say at this current time, if he's not a tradie and he has no experience with this sort of thing its far too much risk, buying a house and renovating after work/weekends is one thing but full time with no other income it can go pear shaped very badly. Need as many mates in trades as you can (even then if they're working flat out for you mates or not tehy wont be happy with getting paid peanuts forever) and pay cash prices for as many materials as you can.

Personally I cant stand renovations, easy for things to snowball out of control, especially on the really old houses where walls have moved 500mm from where they originally were. Easier to build new, and easier to make money building new.

Originally Posted by nuthin' fancy

We all know why they never go back to the properties a year later to see how they've held up.

I drove past last year's motel conversion in South Melbourne, it looked pretty shabby.

I do wonder about that, so much of it has to be staged and/or shoddily done on shows like the block. Full bathroom in 7 days? Waterproofing has to be let set, screed has to be let dry, tiles have to be let set, grout has to be let harden, each coat of gyprock has to be let set. Theres a week just in drying time for things in a bathroom. Let alone actually being able to work in there without a hoverboard.

[Ben73]

Bloke at work who is obsessed with making money and being a tight *** decided he was going to buy a dodgy house(in a cheap [****] area), renovate then sell for a profit. Easy coin, so he thought.
Well its all done now and on the market, and he figured out his renovations earned him hell of a a lot less than $10 an hour for the work he put in. Dont ask me how he came that that figure. No idea how much of the expenses he considered. Not sure if he just based that off his purchase price, or every cent the house has cost him.

He has a full time job and said he spent most of his spare time working on the house renovations. Thing is if he did overtime at work he could of earned $66 an hour. I'd rather earn 66 an hour and work less than earn less than 10 an hour and work constantly while dealing with the stress of renovations.

He said is not going to be doing it again.

[GASWAGON]

Originally Posted by SM1DY

DO YOUR RESEARCH!!!

This is not a game.

I personally cannot see RE in Oz doubling again in the next 7 years thats for sure the chart is already sky high.....Not too mention all the Asian 'hot money' being poured into both U.S and Oz RE.

These asian byers have money to burn and are contributing to the higher than average prices.

End rant!

[mechanic]

I personally cannot see RE in Oz doubling again in the next 7 years thats for sure the chart is already sky high.....Not too mention all the Asian 'hot money' being poured into both U.S and Oz RE.

These asian byers have money to burn and are contributing to the higher than average prices.

End rant!

I totally agree

For a start, RE hasn't doubled in the last 7 years. As for the Asian buyers, figures quoted this week said 12% of expensive RE is being bought by Chinese buyers.
Supposedly the gubment are going to look into it.
As long as there's a 10% GST gouge on every transaction, I can't see the pigs at the trough doing too much to stop the receipts.
Commission on the average house sale is outrageous.

[GASWAGON]

Originally Posted by mechanic

I personally cannot see RE in Oz doubling again in the next 7 years thats for sure the chart is already sky high.....Not too mention all the Asian 'hot money' being poured into both U.S and Oz RE.

These asian byers have money to burn and are contributing to the higher than average prices.

End rant!

I totally agree

For a start, RE hasn't doubled in the last 7 years. As for the Asian buyers, figures quoted this week said 12% of expensive RE is being bought by Chinese buyers.
Supposedly the gubment are going to look into it.
As long as there's a 10% GST gouge on every transaction, I can't see the pigs at the trough doing too much to stop the receipts.
Commission on the average house sale is outrageous.

Yep. They just dont care where the income is coming from as long as it is coming from somewhere.

[mr smith]

Yup, Asian buyers and SMSF propping up the gains. The RE industry will milk any group to keep prices up.

[2011G6E]

It's an idea whose time has come...and long gone.

It harks back to the "good old days" when banks would chuck money at anyone for any house on a tiny deposit, and when house prices were booming strongly year on year, meaning a small miscalculation in your pricing didn't matter so much as you were selling the house for magnitudes more than you paid.

Doesn't work like that any more. As said above..."it's not a game"...

[Rastas]

Renovating can be fine for small profits , but if you really want to see good profits you should learn the secrets of sub dividing a property, works well ia any r/e market.

[GASWAGON]

Originally Posted by Rastas

Renovating can be fine for small profits , but if you really want to see good profits you should learn the secrets of sub dividing a property, works well ia any r/e market.

Defineatly, In fact i think this is the ONLY was to make money from RE now that prices have topped out from the gains of the last 7 years.