Well after lurking here for months, we have finally decided to begin! We refinanced our home and have $180,000 available to invest. We have found a one bedroom apartment studio in Glendalough Perth and put an offer in on it. The vendor wont go below $190,000 so we have offered to pay that, if he will give us $10,000 vendor finance for 3 months. I am pretty sure they will take it.
Our plan is to renovate immediately. It is in original condition, so we are going to rip out the kitchen and put a flat pack one in, and include a laundry behind bifold doors. Put down a wood alminate floor, gyprock the walls, add downlights etc (hubby is an electrician) and rent it out.
Currently the next unit, also shabby is rented at $180.00 so we are hoping with a stylish reno to get $220 to $240 as it is close to the train station, and the city. Then get it valued and borrow against it, repay the vendor and use the balance to buy another.
We took an interest only loan for the $180,000. Do you think this is value? We are hoping that it will be worth around $240,000 minimum when renovated. We have allowed $13,000 for the reno. I figured that it wasnt exactly cash flow positive but by factoring in the depreciation, it may be.
What do you lot think?
Louise
Our plan is to renovate immediately. It is in original condition, so we are going to rip out the kitchen and put a flat pack one in, and include a laundry behind bifold doors. Put down a wood alminate floor, gyprock the walls, add downlights etc (hubby is an electrician) and rent it out.
Currently the next unit, also shabby is rented at $180.00 so we are hoping with a stylish reno to get $220 to $240 as it is close to the train station, and the city. Then get it valued and borrow against it, repay the vendor and use the balance to buy another.
We took an interest only loan for the $180,000. Do you think this is value? We are hoping that it will be worth around $240,000 minimum when renovated. We have allowed $13,000 for the reno. I figured that it wasnt exactly cash flow positive but by factoring in the depreciation, it may be.
What do you lot think?
Louise