Where to buy in Perth for short term profit

We are think to buy IP to realize short term profit, either renovating, subdivide etc, with holding period< 1 year. Any ideas which suburbs /type of properties much appreciated
 
We are think to buy IP to realize short term profit, either renovating, subdivide etc, with holding period< 1 year. Any ideas which suburbs /type of properties much appreciated

This is too open ended a question for anyone to genuinely answer. You need to consider the following:

-budget
-available funds for the value adding, ve it reno or subdivision
-are you planning on selling or refinancing
-your prior experience
-how much free time you have available -eg if you have a full time job it might be hard to say buy a property that needs a full reno, subdivision etc and turn it around in under 12 months if you're planning on doing the work yourself
- when you say under a year you referring to a cash in cash out scenario? So from settlement to settlement?

I believe opportunities in the perth market are starting to appear and will continue to do so but there is still a fair bit of uncertainty. When doing your feasos allow for sufficient contingency as well as at least a 5% drop in sale prices vs current values, 10% if you want to be safe.

I allow minimum 5% drop in all my feasos and that's often in better markets than present.
 
Thanks firvyourvrru Sanj. We are looking for 600k all up, maybe 500k for prop and 100k for reno/subdivision. If we can start and finish selling within a year and make profit around 75to 100k, it will be good. We are free to do the Reno works.

We have IP mainly long term but haven't been monitoring the market for the past few years. Thinking to flip and making quick $
 
Thanks firvyourvrru Sanj. We are looking for 600k all up, maybe 500k for prop and 100k for reno/subdivision. If we can start and finish selling within a year and make profit around 75to 100k, it will be good. We are free to do the Reno works.

We have IP mainly long term but haven't been monitoring the market for the past few years. Thinking to flip and making quick $

Hi Kimmy,

I'd suggest that Sanj is right, there are deals in the market. However, based on your $600k total cost assumptions and target profit of $75k - $100k - this represents a 12.5% - 17% margin over 12 months which is pretty aggressive in short flip subdivision deals. sub 12% is more realistic (14 months timeline) and this would need a considerable amount of personal drive in project managing the site.

Have you spoken to a good broker regarding funding? Do you have access to at least $200k, plus buffer for interest and contingency?

There is no magic bullet with deals, but I would encourage you to go back a few steps. My advice is to arm yourself with a overall strategy (1, 3, 5 and 10 year plan), engage a good broker for a funding plan, and be realistic with the amount time/talent you have to give to the project. Once you have all this in line then start considering property options.
 
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