New South Wales, where to reno?
- Thread starter Cong
- Start date
You mean houses or units? For houses I would look around the Lake Macquarie area. Still properties sub 300k. You could find something that needs a little love and renovate it to appeal to the first home owner market. Newy/Lake mac is the second most populated area in NSW after Sydney where 300k won't suffice.
Something like this perhaps: http://www.realestate.com.au/property-house-nsw-cardiff+south-118119951
Something like this perhaps: http://www.realestate.com.au/property-house-nsw-cardiff+south-118119951
Hi Cong,
Have you already acquired some IPS? Do you know what your plan and strategy is to achieve your goals? Have you done renos in the past?
Leo
You can renovate literally anywhere in the state of NSW. Even in other states. The question is should you? What are your goals, why are you renovating? If (as I assume) it is for maximum equity gain there are some suburbs and property types that will do much better than others. Its all about potential, but also your timeframe for harvesting the equity.
Correct, I hope to renovate for maximum equity gains.
I have worked in the trade and wish to utilise my skills, as well as willing to put in the time and effort.
I own no properties, but have been advised to borrow a maximum of 80% if i wish to renovate. So that leaves me with that budget which includes the money for renovating.
As for timeframe for harvesting equity, I could only guess the 'standard' few weeks that small renovatings usually take, which I know it all depends.
Im really after suggestions or leads of where my budget range can take me.
I have worked in the trade and wish to utilise my skills, as well as willing to put in the time and effort.
I own no properties, but have been advised to borrow a maximum of 80% if i wish to renovate. So that leaves me with that budget which includes the money for renovating.
As for timeframe for harvesting equity, I could only guess the 'standard' few weeks that small renovatings usually take, which I know it all depends.
Im really after suggestions or leads of where my budget range can take me.
Im assuming you have little to no experience with property investing, hence jumping into a reno is not something i would advise straight away. This is what I would be doing if i was very serious about the whole investing game:
1. Read a little to understand the basics of property investing.
2. Identify your goals and risk profile
3. Talk to an experienced finance broker who invests in property themselves and has a decent portfolio. If they don't invest in property, skip them. They should be able to let you know your borrowing power etc.
4. If you decide reno is a strategy you want to pursue then hone in your knowledge in that area for awhile. (understanding what makes a successful reno, demographic, needs of the market, how to find a place that allows to add value and be profitable, how to negotiate a good deal. Often with renos, buying at a good price is key. )
Its not as easy as the shows make it out and a lot of the time the renos on the shows sell at a loss.
Good luck
leo
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Indeed, I am very inexperienced in property investing.
I have read abit, lurked about and believe i understand the basic fundamentals of property investing.
I have written down goals of financial freedom withing an achievable time frame and being young, i believe i have a carefree, all or nothing, attitude towards what im trying to work out as calculated risks as to unnecessary risk.
After reading the slight edge and hearing about analysis paralysis, I would like to take action and am prepared to make mistakes.
The sleight Edge is a good book.
If you think you understand property investment basics (and all that entails), then find yourself a good finance broker who invests in property themselves and is experienced and can advise you how to start this. Its important you approach the right banks first. I would also be learning as much as you can on renos and how to run the project, from beginning to end to maximise your chance of success. Also reno is not a plan or goal, its part of a strategy that needs to fit into your overall plans getting you closer to your goals.
Goon on you mate.
Leo
You can only learn so much from reading, you'll learn everything you need to know while doing it - unfortunately that's how experience works. Prepare as much as you can and then jump in. Learn to negotiate, you can do that now by putting in some offers on places you are interested in. Get an idea of how it works, then when you find the place you want, you have more of a chance of negotiating a decent discount. In more regional places that may not have the CG potential of capitals, you need to "make your money on the way in" or buy "under market value" or "intrinsic value". Going on past sales prices can help. If you're buying a place for less than the person you're buying off paid, you might be on the right track.
