Reno for profit on a small scale.

[Spades]

Wouldn't it be better to reno and hold,revalue and use equity for the next?

 

[neeko]

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?

nah, i'd sell my house and buy something smaller and then use the rest of the cash on units that were bringing in rent for me then id know there'd be a return all the time. wouldn't have to work anymore

 

[Ace in the Hole]

nah, i'd sell my house and buy something smaller and then use the rest of the cash on units that were bringing in rent for me then id know there'd be a return all the time. wouldn't have to work anymore

But why wouldn't you do the reno first, then sell to buy the smaller PPOR and use the remaining cash for rental returns?
You'd be 300k better off if China figures were correct.

 

[moyjos]

My ex and I did exactly this when we were too young and stupid to know what we were doing

We OFTEN did 2 in a 12/18 month period( back in the early-mid 80's) The fastest we did was 3 in just over 12 months (NOT fun!!) We had 2 babies and basically lived out of boxes for nearly 4 years. BUT we did end up with a fully paid PPOR at 28 that with our low wages would never have been able have afforded.

We did it in lower socio-economic areas of North Brisbane..not where we wanted to ultimately buy and settle, but the houses were cheap..ugly and easy to add sweat equity to. In those days, adding a bar downstairs with room for a pool table added $$$$$

We were also lucky to have a "portable mortgage" not sure if they do them any more?? So we did not have to keep re-applying for finance.

Divorce threw me backwards a fair chunk, but at least I had a decent deposit for the next house i bought.