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Anyone been doing reno's over the last couple of years?

Discussion in 'Real Estate' started by Steve, 16th May, 2007.

  1. Steve

    Steve Well-Known Member

    Joined:
    8th Dec, 2006
    Posts:
    97
    Location:
    Sydney, NSW
    I was wondering if anyone has been doing renovations with the idea of selling after a short period of time in Sydney or Melbourne? Given the flat market in these cities over the last few years, I am interested to hear if this strategy has continued to be successful for anyone.

    I have certainly seen an increase in buyer activity in many areas of Sydney lately (and I believe Melbourne as well) and an increase in auction clearance rates. I feel the time is right for me to start entering the market again.:)

    Steve
     
  2. Pablo

    Pablo New Member

    Joined:
    4th Sep, 2006
    Posts:
    3
    Location:
    Adelaide
    Steve,

    I have never done a reno so this is just my thinking but why wouldn't renovations be as profitable in a flat market as they would be in a rising market. Sure they may take an extra three or so weeks to sell but you would be able to negotiate a better deal when you purchased with a lower price and better terms.

    Don't forget that while you may get higher profits from a reno in a rising market a % of these profits would have been made even if you had done nothing to the IP.

    Just for the record I heard a guy speak a couple days ago who started his property investing right at the peak of the boom in Adelaide and has been doing 1 or 2 a month ever since and making bucket loads of money (his term).

    Cheers Pablo.