Corey Batt

This is awesome stuff @Corey Batt! You da man!

I note a majority of your IPs in the Sal & Playford LGA - for a purchase of circa $200K, what do you aim the reval to come back at after minor cosmetic reno?

Also, do you reval immediately after settlement and completion of reno?

Cheers,
Taku

 

Great write up Corey.

 

A girl in every port your eventually going to get caught

 

I don't have a specific aim - it's all down to the individual property and the return it can provide.

I've bought properties with lower revaluation return if it has other desirable characteristics (location, development potential). In general the criteria is to release at a minimum the purchase and renovation costs and the property to be self supporting when rented (cash flow neutral at a minimum).

Generally try to avoid revaluing for 3 months at a minimum, if not needed I'll let them sit for 6 months to get the best result possible for the valuation. After this time the previous cheap sales price will fall off the acceptable time period valuers can reference to, so it can be looked at comparatively against how the market is actually performing, not based on a fire sale.

 

You're a beast mate. Always very articulate the way you put things on here and the snazzy looking suit in the avatar, that I didn't realise you were that young either haha.

Very inspiring and a real idol for what you've achieved man, congrats

 

Just read your article again @Corey Batt - love it.

You said in the article - “We’ll look at affordable areas and then buy well below the median.”
What % below the median do you generally go for as a minimum?

Also, you referenced a property - "The last one we bought cost $185,000; the median in the area was $220,000 and once we spent $6,000 on the place it was valued at $235,000."
Well done! Do you mind sharing the suburb? When was this done? And how long after settlement did you get the revaluation of $235K

Lastly, you said "We know polished floorboards are generally going to be $2,200; the kitchen, depending on the size, is going to be $3,000 to $4,000. At the end, we’re usually within $2,000 of what we estimated.”
I have to do similar work for my upcoming purchase (pending B&P) - in reference to the prices on the kitchen - what does $3,000 - $4,000K get you?
I'm tossing up whether to either paint cabinetry or replace the kitchen cabinetry

Also, a full internal paint of 4,1,1 roughly 115m2 house - I'm guessing $2,500-$3,000K. Is this about right in Ade?

Sorry for all the questions and thank you in advance!

 

Depends on the current state of it and how much work is needed. I've organised one for a client at $3000 and another one for $7500.

 

You bought something in SA??? @Taku Ekanayake

 

Offer accepted. Still hasn't gone unconditional yet though. Will let you when it does

 

@Corey Batt Excellent article. Be nice to be 25 again and have Corey's knowledge

 

Hasn't everybody?

 

That wasnt very comforting. :-o I'm not as quick as Taku.

 

All the cool kids are buying in Adelaide

 

Not bad for a young whipper snipper.

 

Did you use a BA for this purchase?

 

@cherubym yep, used a BA. First time engaging a BA and it was a very positive experience. @DaveM is my BA. Once I go unconditional, I will detail the scope of work.

I strongly believe this is around ~10% below market value (granted it does need $5-$10K of work)

 

Any updates on your purchase? Been following your progress and loving your strategy.

Keen to see the type of deals people are getting in Adelaide.

Cheers

 

@Vk8975 thanks for the props mate.

I have gone unconditional and due to settle late September. Purchased for $220K.
It requires cosmetic reno and I'm projecting $10.5-$12K - mainly on internal paint, kitchen, sand/polish floors, bathroom (new vanity and tiling).

From a yield perspective - currently in Salisbury North, there is only one 4br available for rent at $340/week.

If my numbers stack up purchase price $220K + $12K reno = $232K
Rental $330/week = 7.4% yield

Salisbury North stats:
4 br median = $260K
Rental yield = 6.3%

Working well below the suburb median and sitting well above average yield.

I cannot take credit for this purchase though - @DaveM found me the deal. I'll do a write up once complete.

I won't write on this thread anymore as it's Corey's thread and don't want to digress from his story.

 

Looks like a great deal! Nice yield and instant equity gain to top it off.