Yes sorry I mean more cash behind me.
So you just get it revalued once the reno's are done?
Do you still think it's possible to buy renovate and sell or does stamp duty etc. eat into your profit to much.
Sounds like you are a novice, as there is so much more to this whole process if you flip (basically trade rather than invest). Also do you plan cosmetic or structural renovation? I would suggest starting out just do cosmetic and see how you go. So the general basic formula would be something like:
As a guide, if you buy for X then multiply by 1.4 and that's the price you should consider that you can sell for.
So $500K would need to sell for $700K. Out of that you should allow 10% for the actual renovations, 15% would be your profit, the rest is required for buying/selling expenses, tax, holding costs.
So to answer your question, can it be done in Melbourne? Well if you find a property, you have ECB (Established Capital Benchmark - basically properties that have a range in price), you stick to your budget and you sell for that price, then the answer is yes!
It can be done in many places if you do your research and you know what you are doing.
However, just a word of advice, I would stick to 3 surrounding suburbs you may be interested, attend all open home inspections, compile data what sold for what, attend auctions to see who the buyers were, and I would do that for at least 3 months so you would get to know the area better than some of your agents (otherwise how will you know what you are buying is well priced?). Basically you need to provide a product (the property) to the client (the buyer) so you need to know the demographics you are dealing with.
Keep learning.....and then have a go...as education minimizes the risks you will face...Good Luck!
