On the hunt

[Angel13]

I'm on the hunt for a property to renovate in Canberra but am new at this. I've only ever bought places I would want to live in. I'm your typical emotional buyer.

I heard the Reno Kings say (and I'm para-phrasing here)if you are looking for a property to renovate, you shouldn't pay more than 10% of the land value for the building. So does that mean if the land content is $300K and the property has a run down house on it I should pay no more than $390K?

Is this really realistic and achievable?

Angel

 

[Aaron_C]

Using your example it would mean don't pay more than 330k for the property...

But I am not so sure about that, it really depends on your market and the location of the property.

 

[Jamie M]

I'm on the hunt for a property to renovate in Canberra but am new at this. I've only ever bought places I would want to live in. I'm your typical emotional buyer.

I heard the Reno Kings say (and I'm para-phrasing here)if you are looking for a property to renovate, you shouldn't pay more than 10% of the land value for the building. So does that mean if the land content is $300K and the property has a run down house on it I should pay no more than $390K?

Is this really realistic and achievable?

Angel

Hi Angel

I think allhomes.com.au has a function where you can search for high land values relative to the price of the property.

There’s been a couple of cheapies in Charnwood recently that could benefit from a reno.

If you’re looking for something with a high value land content relative to the price of the property then I’m thinking ex govvies and the like in inner south/north suburbs would prob be your best bet. However, a reno might not be the best option – a knock down and rebuild might yield better results.

Cheers

Jamie

 

[VYBerlinaV8]

Have a look in Queanbeyan, there are plenty of properties needing renovation, and the block and basic structure is often better than you will find in Canberra.

 

[Investor78]

If the house is dumpy enough, you might even get it for land value but most likely the house would need to be demolished.

I think the closer you pay to land value, the more renovations would be needed to bring the property back to good condition. It's a trade off.

 

[Angel13]

Using your example it would mean don't pay more than 330k for the property...

But I am not so sure about that, it really depends on your market and the location of the property.

Hmmm... yes, you're quite right $330K. That's a bit emabarrassing.

 

[Angel13]

Hi Angel

I think allhomes.com.au has a function where you can search for high land values relative to the price of the property.

If you’re looking for something with a high value land content relative to the price of the property then I’m thinking ex govvies and the like in inner south/north suburbs would prob be your best bet. However, a reno might not be the best option – a knock down and rebuild might yield better results.

Cheers

Jamie

Inner north/south def appeals to me if we can get it for a good price. I'm also looking for a bigger block something above 900m2 with potential to put another house on the block (like a duel occupancy).

I'll have to figure how to do the high land value content serach on Allhomes. That sounds like a really good tool.

I just can't imagine anyone selling for land value +10% if they have a house on it. It sounds like an urban legend to me.

Has anybody here ever bought according to this ratio?

Angel

 

[The Y-man]

I've only ever bought places I would want to live in.

In my opinion, there is absolutely nothing wrong with setting this parameter - as long as you don't have eccentric tastes.

The Y-man

 

[Angel13]

Have a look in Queanbeyan, there are plenty of properties needing renovation, and the block and basic structure is often better than you will find in Canberra.

I agree with you and I'm already on it.

Bought one in Queanbeyan earlier this year for that exact purpose. We're living in it at the moment but by this time next year we'll be getiing ready to knock it down for redevelopment.

This is a big project tho and we can't start it now for other reasons so I wanted to squeeze in a smaller project in Canberra between now and then.

Especially now as it seems to be a bit of a buyer's market.

Angel

 

[Jamie M]

Especially now as it seems to be a bit of a buyer's market.

Yep, certainly does. I keep seeing tempting deals pop up.

I looked for that land value in comparison to price function but had no luck. They must have removed it.

Best of luck with the search.

Cheers

Jamie

 

[Phil87]

Is this the link you are looking for?

http://www.allhomes.com.au/ah/act/sale-residential/canberra/1039112/uv-bargains

It's the 6th or 7th link under 'Property Of The Week' for ACT only.

 

[Jamie M]

Yes! Good looking out Phil, that's the one.

Cheers

Jamie

 

[Angel13]

Thanks for the link. I found a potential.

Just doing my research to see if it will stack up. Been doing some reading and they say I should look at current properties on the market in the surburb - compare price difference between renovator's delight and nothing to do and if there is a 25% increase go to the next step and look into the specific street sales. I assume I need to look at the same thing.

Angel

 

[RumpledElf]

I wouldn't bother with that ratio, you just gave the formula yourself - look at the price of an unrenovated and renovated equivalent and see if it is worth it after you take the renovation price into consideration.

 

[Angel13]

I've heard stories of people having made like $50K or $60K after doing a three month cosmetic renovation and in some cases 100s of thousands after doing a structural reno. But how does one find these so called under valued properties?

They say there are particular formulars they follow but they charge close to $5,500 per person for a 3 day seminar/traiing to show you how. It sounds great but I just don't think I want to spend that money right now with us building the house and I really want to have bought something else by Christmas.

I feel so unqualified

Angel

 

[VYBerlinaV8]

I agree with you and I'm already on it.

Bought one in Queanbeyan earlier this year for that exact purpose. We're living in it at the moment but by this time next year we'll be getiing ready to knock it down for redevelopment.

This is a big project tho and we can't start it now for other reasons so I wanted to squeeze in a smaller project in Canberra between now and then.

Especially now as it seems to be a bit of a buyer's market.

Angel

Good work Can I ask which street? Cheers.