An agent rang me the other day and I looked at a property in Slacks Creek Qld. A number of agents are aware of what I am looking for. This one fits the bill.
Anyway looked at the place it needs a lot of work, the agent gave me the building and pest report and I spoke with the Inspector and no great issues that I did not pick when I was there. He just had a camera so I got a better understanding of the hidden damage.
At this stage I am plan is buy reno and flip. If I do end up holding it will be just under 8% yeild.
The property is in a nice location with equal quality homes the current market has properties in the area between $327000 - $370000. land value is $220000from the search I did.
I have a fair chance of securing this property at $175000 due to the damage.
My figures
Buy $175000
Stamp duty $6100
Legals $1500
Reno $60000
Holding costs $3300
Agent fees $12000
Total $257900
If I work on selling for $330000 leaves $72100
Which a bit of 25% over costs less tax of course.
The reno cost is based on what the inspector had estimated $65000 and mine was $50000 to $55000 so for the sake of working things out just put $60000. I am in middle of working the reno cost out in full detail.
I am aware if it sells for say $300000 its just under 20% however I am confident it will market and sell for $330000 at least. Agent indicated $350000if fixed up to its original glory, so to speak.
So asking some opinions here if what I am considering seems sound or i'm off the tracks. Is there other costs I have missed?
Of course the other hurdle is would need broker asap as I was not really prepared at this stage for this (bugger).
Brian
Anyway looked at the place it needs a lot of work, the agent gave me the building and pest report and I spoke with the Inspector and no great issues that I did not pick when I was there. He just had a camera so I got a better understanding of the hidden damage.
At this stage I am plan is buy reno and flip. If I do end up holding it will be just under 8% yeild.
The property is in a nice location with equal quality homes the current market has properties in the area between $327000 - $370000. land value is $220000from the search I did.
I have a fair chance of securing this property at $175000 due to the damage.
My figures
Buy $175000
Stamp duty $6100
Legals $1500
Reno $60000
Holding costs $3300
Agent fees $12000
Total $257900
If I work on selling for $330000 leaves $72100
Which a bit of 25% over costs less tax of course.
The reno cost is based on what the inspector had estimated $65000 and mine was $50000 to $55000 so for the sake of working things out just put $60000. I am in middle of working the reno cost out in full detail.
I am aware if it sells for say $300000 its just under 20% however I am confident it will market and sell for $330000 at least. Agent indicated $350000if fixed up to its original glory, so to speak.
So asking some opinions here if what I am considering seems sound or i'm off the tracks. Is there other costs I have missed?
Of course the other hurdle is would need broker asap as I was not really prepared at this stage for this (bugger).
Brian