I'm wondering what your thoughts are on this one.
Renovating a low/medium end property or renovating a high end property. Examples:
Low/medium end of the market:
http://www.realestate.com.au/property-house-qld-salisbury-117438415
High end/blue chip market:
http://www.realestate.com.au/property-house-qld-paddington-117413879
This is what I think and what I roughly guestimate, I'm wondering your thoughts?
That example in salisbury, you could raise the house, build underneath, fully renovate inside, new kitchen, new bathroom and maybe add a deck for say $100 000 if you do all the work yourself. So buy price would be $420k, $100k reno, and I'd estimate you could probably sell it for $650k = $130k profit minus hold costs, buy costs, sell costs.
Then you've got the high end of the market. Blue chip suburb in Paddington, similar property. But it is an extra $230k. So $650k buy in, spend $100k, and you could sell it for maybe $880k. Total profit $130k minus hold, buy, sell costs.
Have I got those figures about right?
Am I missing any advantages or disadvantages between buying in a blue chip suburb and renovating or buying in a lower/medium end suburb and renovating?
Renovating a low/medium end property or renovating a high end property. Examples:
Low/medium end of the market:
http://www.realestate.com.au/property-house-qld-salisbury-117438415
High end/blue chip market:
http://www.realestate.com.au/property-house-qld-paddington-117413879
This is what I think and what I roughly guestimate, I'm wondering your thoughts?
That example in salisbury, you could raise the house, build underneath, fully renovate inside, new kitchen, new bathroom and maybe add a deck for say $100 000 if you do all the work yourself. So buy price would be $420k, $100k reno, and I'd estimate you could probably sell it for $650k = $130k profit minus hold costs, buy costs, sell costs.
Then you've got the high end of the market. Blue chip suburb in Paddington, similar property. But it is an extra $230k. So $650k buy in, spend $100k, and you could sell it for maybe $880k. Total profit $130k minus hold, buy, sell costs.
Have I got those figures about right?
Am I missing any advantages or disadvantages between buying in a blue chip suburb and renovating or buying in a lower/medium end suburb and renovating?