Renovation Deals Don’t Over Capitalise

Renovation Deals

“Don’t over capitalise”

With thousands of listings in this category, it will enable all members to further filter and find a property project in a State and suburb of their choice. Renovation deals are a great way to add value, increase rent yields, increase demand for rent, increase equity, increase positive cash-flow and or liquidate flip for cash.

Completed deal :

1/9 Sydney st,

Somerville Vic Purchase $235,000 Aug 2016

Reno costs $6,000 (completed myself ) plus stamp duty $9-10,000

Sold $290,000 Oct 2016

Net profit $40,000.(see above)

Top Tips

1. Don’t over capitalise, be prudent and spend 5% of the purchase price. : Stay away from structural damage, flooding, old electrical, re-stumping, close to major highways.
2. Do due diligence on comparable sales to know the end market value of the property once completed.:$1 in should be $2 out in added value.
3. Select areas that have limited land supply for sale and have good capital growth history, close to shops.