Is it possible to make money on a house in 3-5 years?

Well you're no fun!

 

Fixed term deposits are for guarantees. Property is for calculated risks. Black or red at casino is for gamblers.

 

@thatbum my south west area go to and @Westminster my feasibility go to, id love to pick your brains on this property 32 Coolbellup Avenue Coolbellup WA 6163 - House for Sale #128416782 - realestate.com.au access to rear seems to pass and lot size at rear seems ok, main disadvantage I can see is land is slightly sloped also existing dwelling is pretty much renovated to the eyeballs with little/no scope to improve
In saying that it would provide me with a lovely home for the next 3 or so years then split and sell when we leave WA

 

Show me your sums and I'll tell you what I think.

Consider
1. where would parking for existing house go
2. where would private courtyard for existing house go

It may well be possible. I just want to hear your thoughts.

 

Theres still 155sqm to play with at the front of existing dwelling according to my calculations.
Sums......thats a WIP and I would need to seek further advice on that

 

End values in current market look like 200k for the rear block and 400-450k for front dwelling therefore not really any margin in current market but I would be taking a gamble that land values in the area increase over the next 3-5 years

 

yes, very possible, if ppl can time it well. but that is difficult and risky

 

I'm highly intrigued by the responses.

My immediate thought was, OF COURSE, development/subdivision/reno/etc.

Responses have been a mixed bag of... luck timing market vs generate your own profit.

Would love to see quantitative data of how those that responded have done over say 20 years.

 

Luck is often involved but imho, not the determining factor by any means. Ppl who strongly believe its mostly luck simply have no idea how to A) recognise value and B) then capitalise on that value.

Haven't been investing for 20 years yet, about 18. I've done ok..No complaints .

 

Met more than a handful of people who did have a bit of luck. They were dragged along by some other persons motivation and reaped real benefits.

However for the most case, I find as they get older and left behind as their counterpart screams forward, they can't recreate the success and what they made trickles away leaving only resentment and talking about the glory days.

Different from those that were quite savvy and leveraged their luck and just explode upwards.

 

Attended the open home on Saturday. Back yard is more sloped than I had envisaged so probably not ideal for subdividing. At 500k though for +700sqm I still think it could be good value. The house is pretty special and would make for very comfortable living, no where to add value however

 

Yes.

 

2 things.

You wont be only one with these thoughts, so they wont likely fall in your lap. (the thought of an easy, ideal block where no one thought to cut it up).

Your looking at the wrong thing then, you should look at what no one wants, but what everyone will want after you bring it up to a reasonable standard, people do not like hard work, but they will pay if you do the hard work for them.

 

In Perth, solid unrenovated houses tend to sell at a premium. It's a stupid quirk of the Perth market.

 

I don't necessarily want them to "fall in my lap" but sloped land means more $$$ and since this is all a numbers game I need to assess if the the current desired price makes it a feasible option.

 

Even if you can get past the "I want it now" mindset, it's a difficult concept for many people to grasp...the idea that you could rent your neighbour's property which is virtually identical to yours and be significantly better off due to increased serviceability and tax deductions...it's difficult for the average joe to comprehend.

 

In almost all instances people actually need to see how much it differs by numerically to be able to get a grasp of such concept.

The flip side of it is there are always emotions attached to home and it's not something that can be measured when someone is already picturing him/her living in the place and how they're gonna decorate it, invite friends over etc. That's why the "I want it now" desire is so strong. A lot less exciting to picture renting someone else's place and have the same feeling/emotions attached I guess.

Cheers,
David

 

I would not rent the place next door, for at least 2 reasons.

I want to be able to stay as long as I like.

I want to be able to do as I like and improve the property.

Money cannot always compensate, it may depend on if your the type that comes home and just watches the box or only has time to eat and sleep, or if your an apartment dweller, then it would be worth renting, but not next door, out of eye and hearing distance

 

Agree

It is a head vs heart decision

 

Ok if you are looking at Sunshine now the first thing I would do is find out what is happening on the ground. Are there any markets where stock is low..... what product??this is a starting point.... demand is what pushes prices north....

Its not luck necessarily but more about networking with people on the ground that can secure a good deal