renovating for profit in a flat market (perth)

Discussion in 'Renovation & Home Improvement' started by adam duckworth, 2nd Jun, 2017.

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  1. adam duckworth

    adam duckworth Well-Known Member

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    just a quick one. would it be worth renovating- or would the profits be decent enough to warrant a renovation in a flat market such as perth right now for a quick equity gain? i would be talking an older 3x2 in say padbury for example 400k mark, spending 30k on reno (kitchen, bathroom carpets paint landscaping) i guess what I'm asking is, is it possible to still make money (equity) in a flat market doing a "flip"

    thanks PCers :)
     
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    I'm looking into doing it myself, and have been for a while.

    I would say the answer is generally "no", with some very obscure exceptions. I'm looking at a potential project now actually, but I look at every single listing in Perth on realestate.com and I would estimate the ones with potential (in my eyes) are around 1 in 20,000.
     
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  3. adam duckworth

    adam duckworth Well-Known Member

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    yeah i was hoping that wouldnt be the general answer, surely a renovation on a run down house, in a semi decent location, would deliver some sort of equity? I'm not looking to sell straight away but instead holding and renting it out at a higher rate, and hope to use the equity from renovation for the next IP... maybe someone on here can speak from experience that has renod in such a market and gained equity? thanks for your input :)
     
  4. Beachman

    Beachman Well-Known Member

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    Possibly but you're 20k down from the get go with entry costs
     
    adam duckworth likes this.