Renovating a house then selling it... thats not mine
Ive got a friend whos looking to sell his existing investment property (house) in the inner west of Sydney.
Based on the price he wants to sell it for, i believe it is a bit undervalued (based on recent sales within the area and suburbs next door.
Im trying to convince him to renovate it to give it that "ooohhh ahhh" feeling when people come into look at the property.
Main reason for this is that I have noticed that half the reno jobs in the older houses in the Inner West are pretty much half arsed jobs, yet people are prepared to pay top dollar.
Now im happy to buy it off him and renovate it, but after i take into account the stamp duty + agent fees + tax, it pretty much wont be worthwhile anymore.
I was thinking of setting up some kind of agreement whereby i will maintain his loan for him during this period, organise and cover all renovation costs and once its finished, he takes the amount he initially wanted and I take the rest (after applying agents fees + taxes).
Does this work? Or are there other ways to do this?
Ive got a friend whos looking to sell his existing investment property (house) in the inner west of Sydney.
Based on the price he wants to sell it for, i believe it is a bit undervalued (based on recent sales within the area and suburbs next door.
Im trying to convince him to renovate it to give it that "ooohhh ahhh" feeling when people come into look at the property.
Main reason for this is that I have noticed that half the reno jobs in the older houses in the Inner West are pretty much half arsed jobs, yet people are prepared to pay top dollar.
Now im happy to buy it off him and renovate it, but after i take into account the stamp duty + agent fees + tax, it pretty much wont be worthwhile anymore.
I was thinking of setting up some kind of agreement whereby i will maintain his loan for him during this period, organise and cover all renovation costs and once its finished, he takes the amount he initially wanted and I take the rest (after applying agents fees + taxes).
Does this work? Or are there other ways to do this?