Renovation suburbs in Perth

Discussion in 'Where to Buy' started by Of The Vultures, 3rd Apr, 2012.

  1. Of The Vultures

    Of The Vultures Member

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    Hi all,
    First time poster but long time lurker on this great forum. Hoping to get some advice from the Perth locals if possible.

    I'm looking for a property to renovate in Perth suburbs close to the CBD. I want to renovate (cosmetic) and sell mostly, but keep every second/third one long term.

    So far I've mostly looked at villas/units/townhouses in Como, and units in Mt Lawley/Highgate/Maylands. I'm finding it difficult to pin down an area as I'd like to spend enough time on the ground to be very familiar with property values both before and after renos and obviously there's a limit to how many suburbs I can do this with.

    Budget is $400,000 but units in Mt Lawley and surrounds are cheaper still and probably (?) easier to renovate.

    Can someone offer any advice as to what would be a suitable suburb choice? Are there any figures available anywhere showing the price differential between unrenovated and renovated properties in a suburb?

    Cheers
     
  2. sanj

    sanj Member

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    personally for that sort of money i think it will be hard to buy, reno and sell for a good profit in a short period, especially with the prices of tradesmen in WA

    ive heard of people making pretty good money on tarting up old or tired homes in established areas but i do think once you take into account 10% in and out costs + profit margin it's going to be quite tight if you want to spend $400k max

    i have to admit this is not my forte though so i could be wrong
     
  3. MTR

    MTR Bling Bling

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    I have been down this road and if you expect to make money renovating units you need to pick them up for an absolute steal.

    Once you purchase, pay stamp duty (the killer) and associated costs when selling, if you make a small profit you then have CG tax to consider. Don't wish to be negative, but just want to keep it real.

    Also are you prepared to get your hands dirty, tradies are expensive as mentioned.

    I would start looking at sales for unrenovated/renovated 2 bedders in 1 specific area of interest to determine what percentage/profit is achievable. If its less than 20% I would not bother. Units in inner city areas are always in high demand, in Mt Lawley they are snapped up relatively quickly even in this flat market.

    Cheers, MTR
     
  4. Of The Vultures

    Of The Vultures Member

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    Thanks sanj and MTR. I might have to revise the strategy to hold 12 months before selling.
    Cheers
     
  5. Of The Vultures

    Of The Vultures Member

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    Incidentally, has anyone purchased the Residex renovation suburbs report and was it useful? I've heard they tend to be accurate, not sure how true that is though.
     
  6. Kent Cliffe

    Kent Cliffe Momentum Wealth

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    I have written up 30+ offers since my last deal and only one deal has eventuated.

    In flat market you have to be buying very well to make a profit. Most people I have spoken to made money in the boom. That's easy, but making money in a flat or falling market is hard.

    Be persistent, because I have finally found something!