Cheapie Reno - Smithfield SA

Apparently we need clarification on what state we're talking about???

 

House next door just sold for 192k, but its a 4 bedder. House opposite was also for sale for 190ish, 3 bed but nicer than mine. The Commbank app values mine at 171k but thats pre-reno; 171k means an equity pull of almost 20k, I put about 28k in so thats alright. In June the purchase price will vanish off the radar so ill reval then.

The tenants have only paid rent once, and it looks like they might have moved out today on their own. Had an inspection yesterday and theres no damage.. so hopefully EBM's got me covered for the arrears/reletting fees.

Not really concerned about it all. Im just trying to figure out my strategy and what to buy next heh

 

Good attitude to have.

Hopefully the next one has a better rental return

 

If they've moved out that's a good thing in my opinion. The tribunal is more likely to help resolve it quickly, rather than listening to the tenants sob story.

Get some good tenants in and start again.

Great if you can buy again soonish - good outcome for a cheap purchase.

 

Absolutely! They seemed like decent people.. they just didn't have any money.

6 months is too long!

 

Where are you thinking for the next one? North or South?

 

If i had to choose from those two, south. But prices there are creeping up. Plenty of MV houses that need work and theyre asking over 250k.. yeah right.

I guess it depends what pops up. I wouldnt mind one between the city and beach. Maybe something crap in Osborne. North East is ok too, Modbury etc. I dont wanna go further north than Parafield Gardens though and I refuse to negative gear

 

What do you mean the purchase price will vanish in June. It is always readily available.

 

Nah it vanishes. Gone. Dont ask me how

 

affordable homes? but u rented it out straightaway didn't you?

 

I didnt go through Affordable Homes in the end, those properties can be very hit and miss, and its hard to be the first one to respond to the ad

 

Time for a little update for anyone following Smithfield.. second lot of tenants moved in today, lets hope they pay rent a little more often. With insurance and the bond claim covering all the unpaid rent I should only be a few hundred behind.

 

Little more often, like twice?

Fingers crossed these are ok

 

After 6 months valuers will no longer reference the purchase price on properties, enabling the property to be valued at its 'true' market value without any previous low sales price dragging the value down.

 

Yes, that's right but it doesn't vanish!

 

Fairly obvious he was talking about a valuation context

 

This property was just revalued at $185k.
That is a $35k gain over 6 months, from only a $15k deposit, $9k in upfront costs, and a $4k renovation.

Stay tuned for Cheapie Reno #2..

 

22.33% gain in 6 months purely off purchase figure, 20.13% inclusive of renovation costs.

Not that bad at all, especially seeing as you're also sitting on an effective 8%+ rental yield off purchase price.

 

Well done @joel that fancy brick garden edging and paint worked a treat!

 

Well done Joel, who said slums didn't go up.

And I hear the tenants keep it in good shape too