How much in this flip in Forest Lake

C

coastal

Very nice reno and change indeed....minor touch up = massive difference...they changed the front door, added a extra light and re-grass ;) def looks more clean and neat.
 
I think they've spent more than $15K. We do a Reno for $15k so know it can be done but they've replaced the kitchen floor, tiled all the living areas, new kitchen and bathroom, grassed lawn, new doors. Lots of extra things. Staging?

What's the timeframe? Don't forget to add holding costs, stamp duty, sell costs, solicitor costs etc.

Someone care to do a mockup cost?
 
Purchase $268,000
Buying costs $13,500 (5%)
Reno costs $20,000
Holing costs $10k

Total cost $311,500

Selling $328,000
Selling costs $10,000 (3%)

Net profit $6,500

Lots of variables in the above and Im not sure if the 5% buying costs is applicable in other states?
My rough numbers of holding are for 12months.

Lots of variable in the above so take with a big grain of salt.

Blacky
 
They've done a good job. Maybe did all the tiling, grassing, painting, flooring themselves and lived there at the same time.
profit: 6.5K - 20K+
Does this mean we think a 20K profit is worth it?
(This is a genuine question.)
 
This would be my version

Bought for $268,000.00
Government costs $8,409.00
Reno $25,000.00
Holding cost $2,511.74 (Only 2 months)

Selling Price $350,000.00 (Not sure if they can achieve that)
Selling cost $7,000.00 (@ 2%)

Gain $39,079.26
CGT $14,459.33 (@ 37%)

Profit $24,619.93
 
New ss appliances in kitchen incl dishwasher, possibly salvaged joinery, reroofed (or painted the roofing) the veranda & added skylights, tiled living room floors, removed clutter from living area (staged), light fittings, repaint walls, shade sail on side, refurbish bathroom.

The only reduction in costs would come from being a business activity so taxed at 30% (corporate rate with no CGT) or if the owner's MRT is lower.
 
WattleIdo said:
They've done a good job. Maybe did all the tiling, grassing, painting, flooring themselves and lived there at the same time.
profit: 6.5K - 20K+
Does this mean we think a 20K profit is worth it?
(This is a genuine question.)
Click to expand...

I reckon it is worth it if that is how they make their income.

5 times per year...and all that is being done is organising...worth it
 
D.T. said:
Selling seems like such a mugs game. I'd rather do an equity topup and use that for the next one
Click to expand...

Not if your a professional flipper by trade... this becomes a business and you nee to sell to have a declarable income = service a loan or equity :)

Most of our flipping clients sells on average 4 properties per year and makes a decent income...8 month on and 4 month off - good life :)
 
Mick C said:
Not if your a professional flipper by trade... this becomes a business and you nee to sell to have a declarable income = service a loan or equity :)

Most of our flipping clients sells on average 4 properties per year and makes a decent income...8 month on and 4 month off - good life :)
Click to expand...

Can they use flipping "income" as serviceability? How do they prove it?

On the above numbers
268k buy with 241k loan
15k reno
328k reval with 295k loan

So 27k deposit + 15k reno = 42k in
Get 39k out afterwards which is enough to go again
Need to account for SD and LMI though :(

Key point is that you probably look for different numbers if you're renoing to keep vs renoing to sell
 
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