How do you locate the best suburb for a buy/reno/sell

[tgan]

Hello forum friends!!
Its been a while, since ive been here but i am back!!
I am now in a position to go again, and along with possibly attempting other strategies, I wanted to do a quick buy/reno/sell.

I have no issue in costing a project but I am finding it a bit frustrating trying to work out the suburb i should attempt this strategy in. ( i am in melb eastern suburbs by the way).

So i first started with median prices in my surrounding suburbs then i looked at how hot or not these suburbs are at the moment. Everything in Mel seems to be hot at the moment unless i go south east to dandenong/hallam/springvale/noble park areas. If i buy in the hot suburbs i run the risk of not making a profit because my in price might be too high, and if i buy in a not so hot then i might not get my sale price!! Argh!!!

So I am curious: anybody who has bought/reno and sold and made a 10% profit, pleeeeeze tell me, how did u narrow your suburb down?

Thanks in advance

 

[D.T.]

I don't think there's really a good / bad suburb for it, more just a matter of knowing your chosen suburbs very very well. Then, you are in a better position to recognise when something is going cheap due to needing some work done. You'll also be able to recognise what it'd be worth if it was fixed up.

 

[Erica]

Why not just buy near your home?

If you are renovating yourself it will make things so much simpler/easier, and hopefully you will already have a good local knowledge of the suburb good streets/bad streets and be able to find something with fair value.

 

[macca446]

Hello forum friends!!
Its been a while, since ive been here but i am back!!
I am now in a position to go again, and along with possibly attempting other strategies, I wanted to do a quick buy/reno/sell.

I have no issue in costing a project but I am finding it a bit frustrating trying to work out the suburb i should attempt this strategy in. ( i am in melb eastern suburbs by the way).

So i first started with median prices in my surrounding suburbs then i looked at how hot or not these suburbs are at the moment. Everything in Mel seems to be hot at the moment unless i go south east to dandenong/hallam/springvale/noble park areas. If i buy in the hot suburbs i run the risk of not making a profit because my in price might be too high, and if i buy in a not so hot then i might not get my sale price!! Argh!!!

So I am curious: anybody who has bought/reno and sold and made a 10% profit, pleeeeeze tell me, how did u narrow your suburb down?

Thanks in advance

I just really researched the areas I know and most of the time it was being in the right place at the right time, i went to bid on a home on the central coast and lost just as I was about to go I noticed next property going to auction,I knew the area and long story short bought it sight unseen,it was one of my better buys as I did a reno on it did not need kitchen or bathroom but I spent 18k on top of purchase price I had it valued not long after I finished gained 50k on my overall outlay before costs of selling are deducted.

 

[oc1]

Better to know an area or two really well so you know a bargain when it presents. I would think areas that are dominated by owner occupiers will be better.

Oscar

 

[cd83]

Still waiting to jump in, but have been looking at owner occupiers suburbs near good schools that have at least 25-35% diff in unreno/reno value

 

[knightm]

there is quite a bit more to it than that. Flipping is a unique business and requires a lot of extra layers of due diligence than the usual buy and hold.

 

[cd83]

there is quite a bit more to it than that. Flipping is a unique business and requires a lot of extra layers of due diligence than the usual buy and hold.

Care to elaborate at all knightm?

 

[knightm]

Care to elaborate at all knightm?

The basic location requirements I would work on are that you need:

An area with old stock and new stock nearby
An area with a good price differential between those two (many areas don't have this)
An area with a good selling market
An area with a tight rental market in case you don't sell


Then after these you need the abilities to pick a good one, avoid the duds, know what it is worth, negotiate well to get in for a great price (critical), know what it will be worth, renovate to the taste of the market on time and budget and then choose a good sales agent for marketing.


Once you do all that all you have to do is repeat and enjoy the profits!