renovating/investing for a job

same place,
had some personall issues which put me back a little. rent when i bought the place was valued at 150 a week so i ahve lost 6k in rent. 20k-30k total including my labour wouldnt be far off the mark but there was an alteria motive for this reno.

Asfor the BCA and AS, i hold a diploma in architecture and currently doing one in building studies :) so there not a problem.

I allways knew this one would take a bit of time cause i was larning the pratical side of things like tiling, gyprocking, installing a kitchen ect. i knew how it went together in a drawing lol.
The fact i have not made real cash adding all thoese things in does not bother me to much at this stage as this one was a learning process, the additional money im getting over and above my loan repayments is important ATM to help me service my next place and move from a villa to a house.

Im expecting to cut the renovation time in half for the next place by better planning, more efficent workings and better understanding on the things i have learnt from this reno. as they say the best way to lear to swim is to jump in the water!

I dont intend to try to do this for a job anytime soon, still got lots to learn, a diploma to finish and a building lic. to obtain. then there is getting positive geard places to help service loans ect.

More trying to get the idea of what direction to take by people who have done this.
 
Hey cartoon,

Victor is running seminar on this on the 27/28 march if your interested..

It covers the whole buy reno profit stratergy.
 
Hi ya all! on this topic i belive you can, ie purchase at value and renovate to create a better home and give you positive geared property, the only diff is being a lic builder adding more bedrooms for material costs only will make/break the idea, as an owner builder you are restricted to one every 6-7 years. if your living costs are almost nill the stratergy will work as your rent return becomes your pay slip and the added returns of the GST becomes a line of credit, good luck!
 
I went to a renovate and profit workshop by Ana (member on here) last month and it was a real eye opener. She does this full time and just shared an unbeleivable amount of knowledge on the night. It was brilliant. Highly recommend to anyone who would like to learn more about it. I think she is having another workshop in May.

Sean
 
sash said:
Yep....no income no serviceability...even if you have a huge positive geared property porfolio.

Banks think income from a job is safer than rental income even in a recession!

Go figure!
Click to expand...

SASH and yes they do! i have had many arguments with financial instititions about this exact issue.
I see most of the problem being that the managers move to much, and just when you are in a great position the new manager refers you to another branch, and you are treated like a number all over again!
 
Interesting thread, I'm lucky as I make all my money from a couple of websites i own which only take an hour at most a day to run so I have plenty of time to renovate. I think the advice about making sure you have a solid income is important. Maybe consider buying an easy run business like a website or marketing business.

I never knew that you can only add one room every 6 years etc unless you are a licensed builder. How hard and long would it take to get a license?
 
I think it depends on
1) your available capital (there is no point giving up your day job, if your capital will return less than the day job)
2) the attractiveness of the passive asset class to produce above the mean returns in the medium term.

I started with one small business in 1998, grew total number of small businesses to 4 by 2003 (with partners i never had 100% interest in any businesses execpt for the first business), and have gradually offloaded, as my capital rose.
Now i have only one small business. In 2008 when i sold the second last of my small businesses i was in a bit of a quandry, because the remaining small business generated a reasonable cash flow (around $120k a year after tax), but i was used to an income flow much higher than this (around $200k+ per year).
Then the global financial crisis came, and i saw an opportunity that only comes along every 20 years or so, and with the potential to generate a medium term profit that will outperform any small business
 
actually to be fair, i the return on a small business without debt would be higher than the return on passive assets without debt. I was comparing return on a small business without debt against return on passive assets using leverage.
 
monsoon said:
Interesting thread, I'm lucky as I make all my money from a couple of websites i own which only take an hour at most a day to run so I have plenty of time to renovate. I think the advice about making sure you have a solid income is important. Maybe consider buying an easy run business like a website or marketing business.

I never knew that you can only add one room every 6 years etc unless you are a licensed builder. How hard and long would it take to get a license?
Click to expand...

Buildering lic is 4 years part time at tafe plus 2 years documented experience (not as a tradie or nothing more as a supervisor builders role) if you ahve a trade you can get it in 2 years.

Im currently doing mine now :)
 
Hey Cartoon,

There is actually no time limit to doing your builder's license. I got mine in 4 months and although i am a tradie you do not have to be. There is a lot of confusion with regard to doing courses etc but all those courses are actually not a pre-requisite, neither is being a tradie. It's just that a 4 yr part time course sounds like a long way to getting your ticket.

I did mine in Victoria directly through the building commission and although all states are different all i needed to do once licensed in Vic was complete a mutual recognition stat dec and payed a fee and am now licensed in NSW as well, (i live on the border so needed both tickets).

Just thought you might not be aware of the quicker alternatives.

Good luck
Morty
 
craigb said:
I see most of the problem being that the managers move to much, and just when you are in a great position the new manager refers you to another branch, and you are treated like a number all over again!
Click to expand...

i had the exact same problem so frustrating, build a relationship, then all of a sudden there gone! start again, what hapend to loyalty
 
yes its crap so , for others i had recognition , studied part time and put every waking hour into this, had the course done and dusted in 6 months.
But i have done property maintenance for 7 years , built 3 extensions, already a licenced plant mechanic trade cert. {for those ? bulldozers, tractors }then took test for carpenter, cert 3 passed then explosive power tools lic , then interview for the licence, waited for 4 months for a discision, etc. now class "C" licenced unlimited in projects,
At first i hated the study, now i want to do more.:D

So now the big *** home needs recognition for capital gains, and i have just gotten back to the build and sell for income/mortage.

The next step is buy, renovate, add on a large main room, and then keep or sell!
When im a set up i hope in 6 months tome when these other million$$ homes around me sell, the equity will be better realised,
And i hope to buy/hold or sell as i see fit 3 a year.
Thats the plan any way, its been in the pipe line for three or so years, and im almost there, almost ready to start, as they say , to move forward, somtimes you have to take a step back, this is what i have done!
 
morty,

thanks for that mate, didnt know about other ways to obtain a lic.
To be honest i dont need one for what im doing now with work (commercial) which is a weird rule, u need a lic to build a house but not a high rise office building lol.

Im more doin it to actually learn what i can do my self with residential stuff and the managment side im getting from my commercial job.

My investment portfilo has come to a halt atm, was looking for my next place but with the new job being in the city im thinking about moving to ashfield so ill be doing a reno on my PPOR n then rent that out n move on (or sell if i get a good gain outt of it)
 
morty said:
Hey Cartoon,

There is actually no time limit to doing your builder's license. I got mine in 4 months and although i am a tradie you do not have to be. There is a lot of confusion with regard to doing courses etc but all those courses are actually not a pre-requisite, neither is being a tradie. It's just that a 4 yr part time course sounds like a long way to getting your ticket.

I did mine in Victoria directly through the building commission and although all states are different all i needed to do once licensed in Vic was complete a mutual recognition stat dec and payed a fee and am now licensed in NSW as well, (i live on the border so needed both tickets).

Just thought you might not be aware of the quicker alternatives.

Good luck
Morty
Click to expand...


Statistically speaking, how many of those without a trade background or the like have their DBU?

I have heard (from my partner) who did the course that it was a crock of .....
His class has some chick in it who didn't even know what a spring line is.

Had a chat with a chap from HIA, he said that it was way easier to get the DBL or DBM than DBU for those without extensive building experience.

Now as you are aware, for DBL and DBM you have to use registered trades.
The DBU is in fact the gold foil in willy wonkers chocolate.
 
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