House "Flipping"- Renovating Rehab

[Orkibi]

Renovation Project in Christchurch New Zealand with Hadar Orkibi.
In this project we carry mainly cosmetic improvements, while keeping close attention for not over capitalizing.
In this video you will see the walk-through from start to mid project to house staging and the end product.

[HouseWorks]

Thanks Orkibi for your interesting video. What was the budget for this reno including staging cost?

[Orkibi]

This property is at entry / first home buyers level in Christchurch so not over capitalizing was key for profitability.
you just cant afford to in Chch specially now that the market slowed down.

PP: 280K
We spent 36k on the work and 4k on the marketing and staging.
other expenses like holding cost 3 months, insurance, rates, commission on sale, traveling, GST payable on the profit.
Sold 405k.
Over all around 50k profit. will be getting back some of the marketing cost as the property sold within 2 weeks.

[HouseWorks]

I want to start trading in Auckland this year. It could be good time to start. What price range do you recommend? Thanks

[Orkibi]

it is probably the worse time to start at the top of the market. its potentially to risky.
specially if you are inexperience trader....
in general perhaps anything up to 550k ... depend on your financial situation.

[Damap]

Nice work Hadar.
Re flipping yes not a good time to start and you cant buy anything in areas that are good to flip for 550K. Maybe 650. I would wait till February and see where things are at then and decide whether to jump in or not. That gives a few months for the law changes etc to bed in and hopefully see some clear direction in China.
Hamilton or Tauranga is where to jump in right now.

[Orkibi]

cant buy anything in areas that are good to flip for 550K

yes you can, but its very hard...
ie. 2 bed large unit with garage in central Papatoetoe for under 400k sell high 400ks now..

[PTILoveYou]

yes you can, but its very hard...
ie. 2 bed large unit with garage in central Papatoetoe for under 400k sell high 400ks now..

With your large client base, you could flip properties to your clients?

[Orkibi]

No Gary Lin,
I don't do (trade) investment stock for few years now... I mostly sell using agents on the open market. Typically to home buyers.

The propertygenie.co.nz website I manage is platform for investment properties. While most of my projects will not meat the criteria..

[Bluekiwi]

"Final" not "Finel".

Very cool to see the video.

Like a NZ version of Under the Hammer or Who wants to be a property developer.

Maybe we need a NZ show, I reckon Dean would be a good showman for that

[Frezzinghot]

Im looking for at trading now, finance is the hardest part at the moment!

FH

[Orkibi]

Im looking for at trading now, finance is the hardest part at the moment!

Yes its getting harder to obtain finance for trading, but there are few ways around it. ie equity release and or joint ventures.
Banks don't regard (or not allowed to) profits from property trading as verified business income.
We may as well trade Cars or Bananas..!

Are you coming to the NZPIF conference this weekend FH?

[HouseWorks]

it is probably the worse time to start at the top of the market. its potentially to risky.
specially if you are inexperience trader....
in general perhaps anything up to 550k ... depend on your financial situation.

Max Cryer's onehunga house sold at Barfoot auction yesterday for $1.05 million. The Herald report in August expected more than 1.3 million at least "The property is in two sections and is expected to sell for more than the CV of $1.3 million for lot 1 and $435,000 for lot 2."

That was a steal and not all sellers are prepared to meet the market.

[Orkibi]

Max Cryer's onehunga house sold at Barfoot auction yesterday for $1.05 million. The Herald report in August expected more than 1.3 million at least "The property is in two sections and is expected to sell for more than the CV of $1.3 million for lot 1 and $435,000 for lot 2."

I don't know the property, but what i do know is that some agents recently showed me an Onehunga property with the same numbers you talking about BUT they didn't mention that the section was sloppy so massive retaining walls will be required and there is no drainage. so the numbers don't look that great after you do proper DD.

there are good deals in any market but not for the inexperience.

[Frezzinghot]

Yes its getting harder to obtain finance for trading, but there are few ways around it. ie equity release and or joint ventures.
Banks don't regard (or not allowed to) profits from property trading as verified business income.
We may as well trade Cars or Bananas..!

Are you coming to the NZPIF conference this weekend FH?

I would love to but have committed funds to a valuation. How much was it for the weekend?

I am however going to the property tutors on Sunday if thats what you mean.

FH