Is it still good time for buying property for renovation and selling?

[yaigesh]

Hi

I am stepping into this property business. Would really appreciate any guidance.

Also, with so much of speculations about the property market going down soon, is it still a good time to buy property, renovate it and resell it?

[Damap]

If you are a belt and braces person the answer is yes but only quick flip reno's in case a market has a downturn. If you are a realist and in Auckland the answer is yes, absolutely. We should see another 10% lift by Christmas so not only do you get the equity lift from reno you get a market bonus when you sell.

[Rayandstew]

So - what price would be the ideal (realistic) price you would want to pay for a 3-4 bedroom reno, say in south auckland?

[Damap]

Completely impossible question to answer as I am sure you are aware. Somewhere between 230K and 700K depending on where in South Auckland

[Bluekiwi]

So - what price would be the ideal (realistic) price you would want to pay for a 3-4 bedroom reno, say in south auckland?

Should be able to pick something up around the 320k to 380k that is a standard house in an average to bad area

[Rayandstew]

Big thanks

Should be able to pick something up around the 320k to 380k that is a standard house in an average to bad area

Excellent - that's what I thought aswell. thanks for that

[yaigesh]

what are the things to see when buying such property? I mean we want that after the do-up the price must go up.. and not stay there because of the area or other factors. Sorry, I am newbie in this and as you could have sensed by now, ask a bit too much.. :-(

[Bluekiwi]

what are the things to see when buying such property? I mean we want that after the do-up the price must go up.. and not stay there because of the area or other factors. Sorry, I am newbie in this and as you could have sensed by now, ask a bit too much.. :-(

You need to have vision.

The ability to spot things that look really awful and will put off the general public, yet you know you can easily fix and you have fixed those sort of things before cost affectively.

And then you need the vision to see in your minds eye what it will look when it is finished and that that product will be in demand.

But you must pick the right house that has street position, good sunny outlook, and flow inside the house to the outside.

No point polishing a lemon, but shining an apple or digging a diamoud out of the rough.
I have had 2 lemons, 2 apples, and 2 diamonds in the last 10 months.

[Rayandstew]

You need to have vision.

The ability to spot things that look really awful and will put off the general public, yet you know you can easily fix and you have fixed those sort of things before cost affectively.

And then you need the vision to see in your minds eye what it will look when it is finished and that that product will be in demand.


But you must pick the right house that has street position, good sunny outlook, and flow inside the house to the outside.

No point polishing a lemon, but shining an apple or digging a diamoud out of the rough.
I have had 2 lemons, 2 apples, and 2 diamonds in the last 10 months.

Can u xplain your 2 lemons Bluekiwi?? Would love to know....

[Bluekiwi]

Can u xplain your 2 lemons Bluekiwi?? Would love to know....

Okay I wont go into the long explanations which are probably on here somewhere, in regard to the awful white elephants that nearly crushed me.
But the 2 lemons of recent time are.

Buying a property, well, sort of, at night time, and I really couldnt see all that well what I was buying.
That is a lesson in itself I guess, although not a deal breaker.
But property needed a good overhaul and reno ended up being closer to 60k than 30k to 40k I thought I could get away.
House looked nice, but.
Was positioned on section so as not to give good flow from lounge / decks to good flat lawn, the recreation grass area was on the other side of the house.
But the kicker was the position of the house, it was off a main road and we solved on site parking, but it was in a bit of a dip, a gully and you looked down on to the house, it just looked a bit weird and it was flanked by 2 other weird looking houses, it just didnt have street appeal / outlook / position in the street.
A lot of work and 0 profit, maybe even 1k loss.

850m freehold land.
Solved a few issues and made the house look "Okay".
But the flow inside the house which had additions was always just plain weird, and you just couldnt improve on that.
The house was always going to constrict market to which you could sell it, and it was hard to sell.
12k profit.

[Rayandstew]

Okay I wont go into the long explanations which are probably on here somewhere, in regard to the awful white elephants that nearly crushed me.
But the 2 lemons of recent time are.

Buying a property, well, sort of, at night time, and I really couldnt see all that well what I was buying.
That is a lesson in itself I guess, although not a deal breaker.
But property needed a good overhaul and reno ended up being closer to 60k than 30k to 40k I thought I could get away.
House looked nice, but.
Was positioned on section so as not to give good flow from lounge / decks to good flat lawn, the recreation grass area was on the other side of the house.
But the kicker was the position of the house, it was off a main road and we solved on site parking, but it was in a bit of a dip, a gully and you looked down on to the house, it just looked a bit weird and it was flanked by 2 other weird looking houses, it just didnt have street appeal / outlook / position in the street.
A lot of work and 0 profit, maybe even 1k loss.

850m freehold land.
Solved a few issues and made the house look "Okay".
But the flow inside the house which had additions was always just plain weird, and you just couldnt improve on that.
The house was always going to constrict market to which you could sell it, and it was hard to sell.
12k profit.

Ok thanks for that. So basically, homes didn't have street appeal from the very beginning and bad layout etc. Will make sure I will look out for these things as part of my criteria. thanks very much