Advice from experts/experienced

Hi Their!

I’m wondering if I can have some light shared on my thoughts from some of you experts and or experienced.

I’d like to purchase a property with the intention of renovating it (this is my job but as an employee in the past) as I love this avenue. Would love to do this to help generate cash/equity to assist for future development later in life.

My thought process is, I’d purchase my desired property and then after I have engaged correct professionals e.g architects/engineers etc which will then help me gage my build price. Then again go to my desired broker and seek a loan for this to go underway.

Q. Is doing the above process the best way?

This is something I’d like to carry on doing moving forward as a career/lifestyle and understand loan structuring is key especially at the early stages where I’m currently at.

P.S I’d know I’d have this question answered by a broker and know there are plenty here. Even if you guys can steer me in the right direction I’d be grateful.

Thanks in advance!

 

I'm not sure what you mean by doing it "as your career/lifestyle." Not many people I know are able to buy, renovate and sell to make enough money regularly to live off.

Are you meaning to buy renovate and hold as part of your portfolio while you have income from elsewhere?

If you mean to buy, add value via reno and hold in your portfolio as it grows, then I'm generally a fan of the ' add value' approach. You just need to see how it fits in to your overall goals.

Assuming you have the budget/skills/risk tolerance for renovating a home substantially, I see good opportunities in Brisbane for this with a view to hold for 2-3 years then extract equity to grow.

Just depends on your actual goals/financials/skills/risk tolerance.

 

Thanks for the reply Sackie,

My goal is:
What I’m pursuing to renovate, is more catered to the owner occupier
And I’d like to do some new builds, duplex’s etc. and this I’d like to also sell but keep a percentage and lease. (But this is further down the track until traction can be kicked off)
I’d like the new build sales to help feed the bigger renovations and vice versa for new developments…..for the next 2-3 year I’m certainly after the equity as it rises in Brisbane and this is my plan.

Thanks for the feedback

 

As Rolf said, to do what you're suggesting, you need quite a bit of equity and good cashflow . Probably more than you think. If you don't have enough and your hoping to grow more equity in the mean time, well then CG or smaller add value renos and hold or similar is what you'll need before development. Development takes a lot of equity/cash and likely good serviceability to start with.

 

Is the question anchored on you moving from PAYG to self employed? Or around how you fund the current purchase?