Before & After

[Chomp]

This is a sub division & reno I did in Perth, Settled in Jan and completed the sale of the rear block last week. I will hold the front house as a rental.

I put an offer in November 2012, the market was doing nothing and a bit gloomy but I could get finance so I bought, using the time in the market strategy rather than trying to time it.

Well I got lucky as the market has picked up a bit over the last year, I created about 200k of equity in the front house after a bank val so not bad going in 10 months !

So hopefully this can help inspire anyone who is a bit unsure or maybe over analyzing and also a big two fingers to all the D&G's and people who say you cant make money any more

 

[Spades]

Nice work Chomp!
Can i ask how much you outlayed for the reno?
Cheers Spades.

 

[Chomp]

All up I spent 100k which is a fair whack but it helped create the equity, higher sale of the rear block and its also cash flow positive around $150 pw.

 

[Spades]

100k well spent then,congrats!

 

[Andrew_A]

It's always a good time to create value!

 

[HD_ACE]

which burb?

 

[mattnz]

Great work Chomp!

How much of the value do you think was from the market moving?

 

[sanj]

congrats! is there any reason you didnt wait til november to sell the block to potentially take advantage of the 50% CGT discount?

 

[geoffw]

congrats! is there any reason you didnt wait til november to sell the block to potentially take advantage of the 50% CGT discount?

He's holding it as rental.

You done good Chomp!

 

[sanj]

He's holding it as rental.

You done good Chomp!

the block was sold and will be subject to either CGT or income tax

 

[geoffw]

You're right. I'm sorry- the rear block was sold but he's keeping the front block for rental.

Good question.

 

[Chomp]

congrats! is there any reason you didnt wait til november to sell the block to potentially take advantage of the 50% CGT discount?

The house pre reno was a complete mess and the block was advertised and bought as land value only, the beauty is that I haven't really made much profit from the sale of the rear block. I also have some losses to recoup so that should cover it as well. Also I got a couple of low ball offers and was happy to wait until spring and after the election but got one that I didn't want to get away.

Chomp

 

[Chomp]

Great work Chomp!

How much of the value do you think was from the market moving?

I think I doubled my money on the reno / sub division and the market moved about 100k, Its hard to gauge it like that though the front house came up a treat which enabled me to get more for the rear block, It set a record for the area. I bought for roughly $630m2 and sold the rear for $900m2, you now see anything coming on the market at that price to.

 

[Chomp]

which burb?

Bayswater / Inglewood border,

Chomp