Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.


Notify me of new replies via email
paul | 22 Mar 2013, 01:27 PM Agree 0
Can anyone recommend best area in Sydney to buy house now renovate and sell straight away.
  • Eos Property | 25 Mar 2013, 03:07 PM Agree 0
    Hi Paul,
    Don't know Sydney well enough to make any reasonable comment so I'll focus on your strategy and leave the area type comments to someone else.

    You may wish to rethink your strategy as what you are contemplating I would classify as high risk with much of the rick being directly related to the short timeline. The more abbreviated your timeline is the higher the risk level.

    Buying well under value and then adding additional value through renovation will be critical. To do this you are going to have to be in a position to 'spot a deal' and buy under market value before you even start the renovation process.

    What sort of handy person skills do you? The reason I ask is that renovation, and contracting out tasks will eat into your profit margins.

    If you intend doing a lot of the work yourself then you may want to look at more cosmetic type renovations which may give you bang for your buck while keeping costs to a reasonable level. Make sure you have a good handle on likely costs - this is an area inexperienced renovators tend to fall down in. Their costs and budget blow out thus eroding profits - or, even worse, making the project unprofitable.

    When doing your research and budget make sure you factor any CGT liabilities you may incur. A buy and sell within 12 months will see your whole profit fully taxed at your marginal rate - buy and sell after 12 months means only half of your gain is taxed.

    Lots of work to do on your strategy. Don't be seduced by those amazing stories of people making bucket loads renovating. Make sure you know what you are doing, what your budget is and check your capacity to finance the whole deal.
Post a reply