You Can't Make Money in Western Sydney #2

I was very worried you were going to say 10 centimetres.

 

i am very super surprised there is no weekly sob story article on news.com, complaining that someone decided try and replicate the reno tv show and found that without all the behind the scenes work and extra 1000 hands, the renos budget and time frame was complete BS

 

Good one Skater!!.

Did you get finance from bank or did you use your own money to purchase?

In the past, one of my colleagues had trouble securing fund from bank for similar property in a similar condition, bank labeled as non habitable hence they didn’t give the finance after he got the property through auction.

 

Both were bought with cash.

 

I love this thread!
Great work and amazing numbers!

We have dug ourselves a nice hole with our ppor and part time working arrangements to be with our kids, so the banks see us as common non loan approving scum - their words not mine.
These deals may be our way forward, but live in and renovate so no cgt.

Thanks for the motivational push Mr and Mrs @skater !

 

Tread carefully with this comment, likely income tax not CGT if in/out for a quick flip.

 

Na...you will done for war crimes. Get an old bathtub...pour HCL acid and put the body in....then recycle the bathtub in reno. You then get a piece with history.

 

How aggressive was this reno ? You guys ended up changing the dimensions of the rooms !!

 

An obvious risk that can often be mitigated, but not excluded

ta

rolf[/QUOTE]
How to mitigate this risk? Any experience?

 

@skater you mentioned this was a Department of Housing property. Were there other Department of Housing properties on the street? Did this one already hit the public market when you found it or was this one found through a relationship with local agents? I'm trying to find something similar, but haven't found any discounted properties like this. Would love some helpful tips if possible as I'm brand new to the game.

 

are you mainly now going for new home and loan due to depreciation being a major factor? to lowering your tax rate etc. also now with covid19 these areas (new estates) i feel would be the biggest hit?

 

Even during COVID there are people out here in Western Sydney making money.

Have a look at this place - sold in March for $755,000

Sold House 12 & 12A Newman Street, Blacktown NSW 2148 - Mar 3, 2020 - Homely

With a bit of a tidy up, back on the market now for $X

https://www.realestate.com.au/property-house-nsw-blacktown-133948878

Only time will tell what the numbers will be - but I think they'll be good

 

That is an amazing job, but in this market, who knows if they will make enough to recoup their investment?

Looks like they would have spent a considerable amount on top of their 755K purchase price, and the Blacktown ave house price is about $700K, would maybe need about 850K to break even?

 

Yep.

I think with the land size and the attached granny flat (even though it’s a one bedder) they should be able to get $900-950K.

No real garage for either of the houses though which is a bit of a shame

 

Amazing reno! Can I ask whether you or your husband have any qualifications to do these renovations? Or are you self taught? I’m just so stumped about the total renovation cost (excl. your labour). How many years would it take me to learn these types of skills? My fixing skills are limited to super glueing and there’s only so many things you can fix with super glue!
Also, was this your full time project? Did it only take you a few days to do all of that work?
Well done!

 

It looks buying price is wrong. I don’t think it will pass even 850k. Most offers will be about 800k or less. There are good properties with 2bed granny went under 800k.

By reading your response, it is someone else project, not shawn

 

@Jana - I don't think that'll be the case.

12 Frederick Street - sold for $881K a few weeks ago (corner block on 595sqm) - That had a 2 bedroom granny

All the other granny flats that sold recently in the $800K range are either :

1. < 700sqm land
2. Really run-down main house

35 Tulloch Street was a half-decent buy at $740,000 but you would have had to spent some good coin fixing up the front house because it was a wreck.

 

Hubby is an electrician by trade. If you go through the photos carefully, you will see that most of the labour on this home involved painting, but don't be fooled that anyone can do a decent paint job. It takes time and an attention to detail. If you can learn to do a decent paint job, you can turn an ugly duckling into a swan.

Plastering is a good skill to have as well. I can't count how many times we've had to fix plastering that someone has already 'fixed'. Hubby learnt how to plaster as a young man working on building sites. It's not hard to do a decent job of it, and I can also set plaster & finish it off, but just like painting, you need an eye for detail. We're not as quick as the professionals, though, but calling in a plasterer isn't too expensive, so long as you can pay them by the hour.

There was absolutely nothing structural done to this house. It could be done by any home handyman, who has pride in their work & a good eye. Expect many long hard hours working in the dust & grime.