Budgeting for renovation

[Csabor69]

Hi guys

I would appreciate your input. Can you share all the fees needed to be taken into account when drawing a budget and how much they are?
Costs associated with buying and selling a property?
I am fairly new and starting off with strategy Buying Renovating Selling.
Property I am strongly considering will be in auction next week with guide price high $400k.
Mortgage insurance, stamp duty, solicitors fees, monthly repayments, selling fees, CGT, ......
How much are they with exception of stamp duty, insurance, monthly repayments which depends on the value of property.
Many thanks.

 

[Jaggannath]

Some of the fees will be dependent on sale price, and your circumstances (first home buyer etc.), and there are calculators available. Depending on the market, high $400ks means you should budget low-to-mid $500ks.

LMI applies depending on the value of the loan relative to the property, solicitor fees depend but I usually budget $2k to go overboard. Monthly repayments are based on the value of the loan, not the property, and there are online calculators.

 

[travelbug]

Before you start you need to start with the price it will sell for when renovated.from here work backwards. Take out buy costs, hold costs, Reno costs etc etc, including how much profit you need. What's left is your maximum buy price.

On top of the costs you mention you need to have a really good idea of what needs to be done with regards to the Reno and how much it will cost.
Are you considering doing the work yourself or using all trades?
Most people come nstuck by under estimating the costs of things and the time it takes.
You really need to ensure the figures are right to avoid disaster.
I've seen a good number of renos where the buyer could not have made money.

 

[zimby]

Always Over Budget for Reno's
So many unforeseen things can change the price.