Making money from property in 1-2 years

Haha absolutely! Might even catch a plane next time. Just need to find the right airport

 

Regional areas have a good track record of going up in value after capital cities rise, normally delayed a bit but they get there eventually. A lot of regional areas in NSW have gone up Bathurst, wagga, albury etc. Plenty of opportunity to make some quick money, as others have stated with buying below market value and doing cosmetic touch ups would be your best bet. Research, Negotiate and roll up your sleeves for some renovating. Good luck and let us know how you go

 

Yep...just heard this from my broker at the moment...I have been saying that this is larger than people think. The trouble is in some areas things are just not valuing up...

What surprised me in mu convo with my broker was he mentioned that he was approached by an Asian client who bought 7 places off the plan...she is a mad panic about losing 2 properties becuase she can't settle...no financiers will lend to her. To use his words....she is in a world of hurt. She has another 5 more coming up for settlement over the next 2 years...

What also surprised me...it is not only apartments...but also houses......watch this space...it looks like history is about repeat in Sydney.......

 

I'm quite worried about a unit oversupply and rents dropping due too much stock on the market. I'm starting to ask my PM's in Sydney to try and get 12 month leases on resigns. Going to be an interesting few years ahead.

 

Yep......I see this also happening in Brisbane and Melbourne where investors have heavily targeted

 

I agree in apartment market.

But will there be contagion? Some people have tried to argue with me there will be. Going so far as to say it will be worse for H&L in outer suburbs if the apartment market tanks.

I can't see the fundamentals of a house in a mid or outer ring suburb changing because an over supply of shoebox inner city apartments built solely for overseas investors.

Yes it may get to a point where the apartment represents better value for money but I don't think it will significantly drag down prices of a completely different product in a different area.

 

500k investment
50k profit after 1-2 years

Like many have already said, this is more than doable. I'd almost go as far as saying its relatively easy.
This type of investment budget is ideal for a very small development or a H&L build type strategy.
As long as your research and due diligence is good, a 50k target would be very achievable.

I've actually got a similar strategy that I've been using although with slightly higher budget. Land sub div strategy.. 600k budget, with a target of 100k profit after approx 18 months. I then pull out the original deposit and go again.

 

Ofcourse it can be done with a subdivision and renovation combination.

I would buy a 2 bedder somewhere in Melbourne (I would personally aim for North West) with the ability to knock down internal walls and turn it into a 3 bedder (Purchasing budget and closing costs of 700k). Put 30-40k into a renovation whilst in the meantime going through planning to subdivide the rear. All up 100k including holding costs for 2 years.

New independent values would be around 900k+. 30k selling costs for a gross profit of 70k.

All this without factoring in any CG.
Easy Peasy lemon squeezy!....not sure why I have only done this once though...

 

Thanks albanga, I haven't done this before but happy to give it a go once I work out the numbers. I'm sure with more research and guidance from the correct educated people it is possible.
Budget is 500k, not 700 so I can't see this method working above.

I like the ideas people have put forward of buying well, add Reno.
I also like the subdivision ideas.
Connor/cactus/sash, What's easier or the least risk way between subdivision or building h&l packages?

What about buying an older house on a bigger block that needs a cosmetic Reno, paint/carpet/kitchen- lower cost. And getting permits to build/subdivide an additional dwelling or 2, and selling it without developing. Would this method give you enough profit without building?

 

Do you have 500k in cash or 500k as budget when borrowing and if borrowing is this at 80% LVR or we talking 95% LVR?

 

For real ? Do you know any more details? Like where in India ?

 

The reason I say 700k is because their is a sweet spot I believe where the newly created land would be sellable.

Lower price points means less land value and as such people will be far less inclined to purchase land to construct. Developers are not also going to be knocking down your door to build 1 townhouse with probably very little profit.

 

Can't go wrong.

Well...almost .....India-nah!

 

Borrowings of 500k purely for example, to generate the 10% return within 2 years.

 

What price point are you thinking of buying regarding your example?

 

I aim for $600K end product due to the FHB cut off, this is in Melb market
Also attracts the lower end downsizers, gives them money in their pocket after sale of home

 

Absolutely but thats value adding not passive investing

 

I would have no problem turning 500k into 50. It would be quite a challenge to not lose $450k in a couple of years.

 

End product of what though?
The existing house?
The land?
Or the combined value?

 

end product/development - townhouses