Turn 3x1 to a 4x2 back on the tools,$$

C

craigb

I have been building, my own home for 18mths, and have some equity, but have not shown income for the same time, lic "c" in canberra, and built and renoed a good few homes in the ACT, at this time i would like to purchase a 3x1, and change it into a 4x2 inc ,new wetarea's, kitchen , paint, render, etc.i can do all this for about 20<35k. i have done this b4. at the moment, prop avail at say 380K reno, 30k, and flick it back on the market for, 490<540k, this is good k return, for 3,4 months , your comments please, craig!
 
craigb said:
I have done this b4. at the moment, prop avail at say 380K reno, 30k, and flick it back on the market for, 490<540k, this is good k return, for 3,4 months , your comments please, craig!
Click to expand...

Craig

What you are describing was done in a rising market.
If you do a reno today and the market is not moving you will be lucky if you got your money + purchasing/selling costs back
It depends on each deal ofcourse but this is the general feel I get about renos atm.

IMHO
 
Hi Craig

I agree with BV. Flipping renos works best in rising markets. Cost of interest for a hold may make the whole process unviable.

For 12 month hold net $45K
For 6 month hold net $62K
For 3 month hold net $71K

Then we tax it at your top marginal rate.

Maybe better doing other people's renos and reducing the risk.

Cheers

Shane
 
Factor in buying and selling costs as well as CGT.

If you owner occ then you save the CGT but you mentioned you own your own home.

Perhaps it is worth doing then keeping the property as an IP and enjoying the increased rental a 4+2 would get.
 
This sort of stuff is not new to me and have made $100k + on all renos, their are renos and reno's, the differance is the quality of the work, lower end 3x1 to a mid to higher end 4x2 is not trying to over cap the market, and becomes fair sell in comparison, to other homes, on the market, the stamp duty can be negotiated off the asking val, and the financial invester can get all of the product Gst back, as i am happy to bust a gut, for no income, for the construction time and send it to auction, eg i can build a 4mx4m room, for 5K this in an example, but don't tell anyone, shhhhh!
Almost every reno i have seen looks bodjy, but is done right can look like a new home, so who"s want's to talk to me about makin some money, as i am cashed out, and need some work/investment opps.
message me and i can link you to my last project, ie my home.
 
Craig

Thanks for the link to your property.
You've done an excellent job.
I was going to ask you what the Monkman St property looked like before the reno but going to google street maps it has the old photo.
It's an amazing transformation and congratulations on the result.

Cheers
 
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all brand new , the prev owners lost it in the fires, and thanks for the kind words, but back to work for me. i owe , i owe , its of to work we go!
 
Craig

I've just realised I was looking at the wrong house on Google
but nevermind you've done a gr8 job :)

Did you work on it fulltime or did you have anothe job as well?

I ask because you could easily make $100K pa if you are in the building trade and without doing renos.

Cheers
 
Full time and expect that doing reno's as a lic builder i could make 300+,but nothing to go on with yet still fishing??
 
craigb said:
I have been building, my own home for 18mths, and have some equity, but have not shown income for the same time, lic "c" in canberra, and built and renoed a good few homes in the ACT, at this time i would like to purchase a 3x1, and change it into a 4x2 inc ,new wetarea's, kitchen , paint, render, etc.i can do all this for about 20<35k. i have done this b4. at the moment, prop avail at say 380K reno, 30k, and flick it back on the market for, 490<540k, this is good k return, for 3,4 months , your comments please, craig!
Click to expand...

The ADVANTAGE of being a registered builder!!!!!!!!
 
Craig,

What do you have in mind?
To go 50/50 on a purchase and then do a reno or to knock down and rebuild?
Cheers
 
Hi Craig

Just out of interest how do you turn 3x1's into 4x2's, do you extend on the house or split up rooms in the existing house? I imagine it gets costly if the roof has to be extended.
 
a 50 50 split would be fine if your willing to do the dirty work with me, or i cover the work products only, and you pay the bills.
 
There may be one or two walls that require shifting to allow for access for the new room , by adding a main and ensuite, and reno the rest of the house when your waiting for a da, The trick is for me that i dont have to wait for a plasterer, carpenter, and can proceed as soon as i get app. this saves about two months,
 
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