Reno for profit on a small scale.

[T.G]

Hi all I was watching flip men last night and wanted to know if something like that was possible in Australia ? For example I buy a house in a lower priced area, live in it for 6 to 12 months whilst doing comestics renos, like tiling, painting, landscaping etc then sell the home and on to the next one ?


Also is it feasible to do this to investments properties as well as your ppor ? {leaving the cost of the using an agent aside as I'd sell the home myself}

 

[beachgurl]

It can be done. I've just bought a place that I plan to renovate and put back on the market before Christmas. My conservative projections are to make 20-30k profit pre-tax. Doesn't sound like much but beats commuting to the city for 55k a year.

 

[china]

Hi all I was watching flip men last night and wanted to know if something like that was possible in Australia ? For example I buy a house in a lower priced area, live in it for 6 to 12 months whilst doing comestics renos, like tiling, painting, landscaping etc then sell the home and on to the next one ?


Also is it feasible to do this to investments properties as well as your ppor ? {leaving the cost of the using an agent aside as I'd sell the home myself}

I see many people doing this.

The beauty of doing it on your ppor is that gains are CGT free.

It also allows you to work from home and changes your ppor from a potential liability to being a genuine asset.

 

[ChrisA1]

Ato

Isn't the ATO cracking down on people who make a property their PPOR for the sole purpose of reno'ing then selling so as to escape paying CGT.

I think if you did this too many times, you would come up on the ATO's radar.

 

[Ace in the Hole]

It's a good strategy when starting out and needing to build equity.
However, after one or two it would get old pretty fast.
There's easier ways to make more money without restricting your life to these circumstances.
It's a limited strategy which you should outgrow after a short time.

 

[china]

It's a good strategy when starting out and needing to build equity.
However, after one or two it would get old pretty fast.
There's easier ways to make more money without restricting your life to these circumstances.
It's a limited strategy which you should outgrow after a short time.

I suspect that it could also be a good end stage strategy. Lets say you own a 2m PPOR that you had owned for a long time. You are getting old and wish to downsize to a 700k unit. Would you not do a 200k reno on the 2m PPOR and sell for 2.5m and then you have an extra 300k tax free in your super / retirement funds?

 

[handyandy]

I suspect that it could also be a good end stage strategy. Lets say you own a 2m PPOR that you had owned for a long time. You are getting old and wish to downsize to a 700k unit. Would you not do a reno on the 2m PPOR and sell for 3m and then you have an extra 500k tax free in your super / retirement funds?

Would be good if you can do it and the market supports it.

Unfortunately, for those in this position they have no financial resources to achieve a massive financial injection to achieve a reno of that size let alone the energy at 65+ years. Particularly if they have never done something like it previously.

Cheers

 

[china]

Would be good if you can do it and the market supports it.

Unfortunately, for those in this position they have no financial resources to achieve a massive financial injection to achieve a reno of that size let alone the energy at 65+ years. Particularly if they have never done something like it previously.

Cheers

Agreed, but I think it would suit an aging builder or tradie as one final hurrah.

 

[Ace in the Hole]

I suspect that it could also be a good end stage strategy. Lets say you own a 2m PPOR that you had owned for a long time. You are getting old and wish to downsize to a 700k unit. Would you not do a 200k reno on the 2m PPOR and sell for 2.5m and then you have an extra 300k tax free in your super / retirement funds?

But that's not really a predetermined strategy, it's simply optimizing your situation.
Pretty sure most switched on people who are selling their long term PPOR want to optimize the sale price.
Maybe someone should start up a reno biz for these situations where they fund the Reno and take a small profit share on sale

 

[china]

But that's not really a predetermined strategy, it's simply optimizing your situation.
Pretty sure most switched on people who are selling their long term PPOR want to optimize the sale price.
Maybe someone should start up a reno biz for these situations where they fund the Reno and take a small profit share on sale

Reno Funders - where are they now?

 

[Ace in the Hole]

Reno Funders - where are they now?

They are right here - www.renofunders.com

It's happening !!!

 

[china]

Simply amazing. That thread was closed off and the poster was derided as a troll by many.

 

[Reno Funders]

Thats correct. Pinkyboy trolled my thread and also committed defamation, so admin on this forum removed any of his defamation postings.

 

[coastal]

what is the limit in NSW before a builder has to project manage the renovation - sign it off..all tradies through builder?

$20000?

 

[T.G]

It's a good strategy when starting out and needing to build equity.
However, after one or two it would get old pretty fast.
There's easier ways to make more money without restricting your life to these circumstances.
It's a limited strategy which you should outgrow after a short time.

Being a complete novice ,can you give me some more info for me to research on these methods please?

 

[mikezen]

Thats correct. Pinkyboy trolled my thread and also committed defamation, so admin on this forum removed any of his defamation postings.

There there precious, everything will be ok soon

 

[mikezen]

Thats correct. Pinkyboy trolled my thread and also committed defamation, so admin on this forum removed any of his defamation postings.

That naughty pink boy

 

[coastal]

It can be done. I've just bought a place that I plan to renovate and put back on the market before Christmas. My conservative projections are to make 20-30k profit pre-tax. Doesn't sound like much but beats commuting to the city for 55k a year.

Hi Beachgurl..will you be using furniture staging to help sell it?

 

[beachgurl]

Hi Beachgurl..will you be using furniture staging to help sell it?

I will most likely get some staging for the living areas. Pretty much have all I need for the bedrooms

 

[Spades]

Thats correct. Pinkyboy trolled my thread and also committed defamation, so admin on this forum removed any of his defamation postings.

Hiya RF,
Will RF be branching out to reno to optimize rental yield rather than just target 1 market ie:reno,sell?
Cheers Spades.