Gday all,
Have been soaking up all the great info on SS for the last 6 weeks, plenty to learn on here, best resource I?ve stumbled upon thats for sure. Thought it was time to get a bit more involved and hopefully get some opinions/suggestions on the path I?m looking to head down. This is going to be a bit long winded so tune out now if time poor.
A bit of background, 31yo, have recently moved from Perth to Adelaide with partner. Currently have the flexibility of working from home on a part time basis so looking to have a go at generating some additional income through property. I've just finished renovating our PPOR in Adelaide, my 3rd reno project. We currently hold 2 properties, one IP in Perth and our PPOR in Adelaide.
The following is a short term plan I?m looking at in order to keep me fully occupied and hopefully avoid having to seek out full time employment for a while longer. My longer term investment plan is a bit more robust, but that?s for another thread. Currently I?m planning on purchasing another reno property to see if I can turn a profit, repeat, repeat and then work towards a small subdivision/build project. I?m aware the buy/reno/sell approach is a bit risky if not researched and executed well, and can be expensive in terms of CGT and selling costs eroding profit/equity. However in the short term I will be treating this as employment rather than investing so paying tax is part of that in my opinion. I?m not looking to make a fortune, just try something different which I (currently) enjoy. As I said I have done a few renos, (most with significant structural work) in the past so I have a good group of trade contacts and have pretty sound knowledge on project costs and timeframes. Also working in the engineering/construction industry my project management skills will be advantageous.
I?ve spent a fair bit of time researching suburbs in Adelaide where I think this sort of thing has the potential to work; good price disparity and high demand. I feel I know what price levels I need to purchase at in order to ensure a profit. The main problem I see in my chosen areas is the amount of competition for the unreno?d properties. It seems the amount of PPOR seekers willing to pay (imo) too much for a renovators delight is increasing, I blame the renovation shows. I?m getting to know a few agents so hopefully this combined with quick offers on new listings will help me secure something suitable.
I know this topic has reared its head on this forum a bit, but would be interested in hearing whether anyone has/still does this and any positive/negative experiences. Whats the worst that can happen? If it looks like I?m not going to turn a profit on project 1 then I will rent the place out, go back to the desk job and focus on the long term strategy. I know this is a hard way to make a living but it has to be worth having a go.
Have been soaking up all the great info on SS for the last 6 weeks, plenty to learn on here, best resource I?ve stumbled upon thats for sure. Thought it was time to get a bit more involved and hopefully get some opinions/suggestions on the path I?m looking to head down. This is going to be a bit long winded so tune out now if time poor.
A bit of background, 31yo, have recently moved from Perth to Adelaide with partner. Currently have the flexibility of working from home on a part time basis so looking to have a go at generating some additional income through property. I've just finished renovating our PPOR in Adelaide, my 3rd reno project. We currently hold 2 properties, one IP in Perth and our PPOR in Adelaide.
The following is a short term plan I?m looking at in order to keep me fully occupied and hopefully avoid having to seek out full time employment for a while longer. My longer term investment plan is a bit more robust, but that?s for another thread. Currently I?m planning on purchasing another reno property to see if I can turn a profit, repeat, repeat and then work towards a small subdivision/build project. I?m aware the buy/reno/sell approach is a bit risky if not researched and executed well, and can be expensive in terms of CGT and selling costs eroding profit/equity. However in the short term I will be treating this as employment rather than investing so paying tax is part of that in my opinion. I?m not looking to make a fortune, just try something different which I (currently) enjoy. As I said I have done a few renos, (most with significant structural work) in the past so I have a good group of trade contacts and have pretty sound knowledge on project costs and timeframes. Also working in the engineering/construction industry my project management skills will be advantageous.
I?ve spent a fair bit of time researching suburbs in Adelaide where I think this sort of thing has the potential to work; good price disparity and high demand. I feel I know what price levels I need to purchase at in order to ensure a profit. The main problem I see in my chosen areas is the amount of competition for the unreno?d properties. It seems the amount of PPOR seekers willing to pay (imo) too much for a renovators delight is increasing, I blame the renovation shows. I?m getting to know a few agents so hopefully this combined with quick offers on new listings will help me secure something suitable.
I know this topic has reared its head on this forum a bit, but would be interested in hearing whether anyone has/still does this and any positive/negative experiences. Whats the worst that can happen? If it looks like I?m not going to turn a profit on project 1 then I will rent the place out, go back to the desk job and focus on the long term strategy. I know this is a hard way to make a living but it has to be worth having a go.
