EPI 108 | Renovation dilemmas with Jane Slack-Smith

What’s news

  • Kaz talks about:
    • buying at the higher end
    • site value, house condition, size, land value
    • negotiating

Feature – Renovation dilemmas with Jane Slack-Smith


Common dilemmas people face when renovating for profit:

  • Inner city vs Outer suburbs
  • Buy and Hold vs Quick turn over
  • Cosmetic vs Structural
  • Inside vs outside reno
  • Colour vs neutral
  • One story vs double storey extension
  • Project Manage vs DIY

Quick tip and action

EPI 082 | The Ultimate Guide to Renovation Course with Jane Slack-Smith – Special Edition Podcast

Things we talk about

Jane Slack-Smith The Ultimate Guide to Renovation

  • Comprehensive online-based
    renovation course
  • Difference of the course from
    other renovation courses
  • Renovation tips and tricks

Quick tip and action

stick_figure_bonus_400_clr_6848 EPI Special Bonus 

  • Get your access to the Ultimate
    Guide to Renovation here and get

    • 1-hour consultation with Kaz
      about your reno project
    • Plus the Everyday Property Investing Renovation calculator

Learn about The Ultimate Guide to Renovation here 

 

The Ultimate Guide to Renovation

 

Check out this fantastic course from Jane Slack-Smith that gives you the step by step, comprehensive, systematic approach to renovating for profit – It’s the Ultimate Guide To Renovation!

[Read more…]

EPI 075 | Renovation rollercoaster and listener questions

Things we talk about

Calculating cashflow Calculating Cashflow

  • Things to factor in: land size, zoning, overlays, sewer lines,
    rental yield, vacancy rates, anticipated growth, facilities, sales
    history, advertising history, etc.
tradespeople Real-life renovation issues

Quick tip and action

quotations
  • Make sure you always get written quotes from at least 3
    sources – and beware of psychos!

 

 

The Reno Kings on EPI’s Renovation Project

 

So what have we been up to lately? Well, this is what:

Yep, those are yours truly and  Mastermind Jo making our small screen debut  via Today Tonight.

The episode features Reno Kings Geoff Doige and Paul Eslick dishing out some renovation tips on how to add value to a property whilst spending less. And oh, that’s our very own renovation project in Brisbane that’s used as an example.

Tell you more about our ongoing renovation project in posts to come. In the meantime, let us indulge in this 15 minutes (actually, less than 5 minutes!) of fame.

 

EPI 072 | Invest or Nest? Starting out

Things we talk about

questions.001 Questions to ask yourself

  • Why do you want it?
    • There can be very good reasons like children, stability, etc.
  • Where do you want to live?
    • Can you even afford to buy where you want to live?
House key Buying your own home

  • For some, their first purchase will not be the “forever” house
  • Average lifespan of a loan—5 years
  • You are really paying for interest in that time
  • Think of it like an investment
  • A chance to get in and maximise your leverage
    • Buy well
    • Buy something you can do something with to add value
    • Buy in a growth location

Quick tip and action

Commitment
  • Have a think about your circumstances and whether buying or
    investing first is right for you before you commit to a purchase!

 

 

 

EPI 067 | Renovating to profit with Jane Eyles-Bennet

Things we talk about

It’s all about renovation this issue as we talk about our recent renovation workshop with the Reno Kings and in our feature segment, we speak with designer and renovator Jane Eyles-Bennet about her business of helping people renovate for profit.

 
  • Good properties in Brisbane within typical investor price bracket ($400-$450k) are moving fast
 
  • Jane Eyles-Bennet of Hotspace Consultants (http://www.hotspaceconsultants.com/) shares how her business helps investors profit with renovation projects
 

Quick tip and action

  • Making money from a buy, renovate and sell strategy can be very tricky; there’s buying costs, renovation costs, holding costs, selling costs – so the differential between your purchase price and your end sale value needs to cater for all of that PLUS give you a profit.
  • Instead of buying, assess your existing properties—do they need an update, some paintwork, a render and some new flooring?
  • Speak to some local managers—what are tenants willing to pay more for?

 

Cashflow positive property in Chinchilla, Queensland


In our  recent post we gave you a sneak peek of the three major mining areas in Queensland—the Surat Basin, Bowen Basin, and Galilee Basin—which we will be reviewing in an extensive report as Lisa Parker and I go on a mining town road trip.

But before that, here’s a case study on a property in one of the towns in Surat Basin—Chinchilla. In this article, I will be presenting you with the numbers and some considerations before presenting three possible course of actions we can take on this piece of property.

Where is Chinchilla?

As mentioned above, Chinchilla is located in the Surat Basin, on the South Eastern part of Queensland. It is approximately 300kms northwest of Brisbane and has a population of 5487, according to the 2011 Census report. It is interesting to note that back in 2006, this town only has 3682 residents. But the significant growth in the area brought by the boom in mining resources in the Surat Basin saw Chinchilla providing residence to the mining project workers.  Agriculture was the main industry in Chinchilla before it experienced growth due to the mining projects involving coal mining, coal seam gas and liquified natural gas.


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Our Property in the spotlight

In this sample study, we will be focusing on a three-bedroom Chinchilla property. It also has a study or second living area.This property is located on a 933sqm corner block, just five minutes from the parks and services.

The figures

The asking price for this property is $365,000 and current rental appraisal on the home is $460 per week unfurnished. Based on these figures, the rental yield on this property is 6.5%. This means that this property would be negatively geared at approximately $70 per week—that is if we assume 100% borrowings, a 38% tax bracket and an interest rate of 7%.

However, if we consider maximising the use of the existing dwelling and adding another dwelling (or even two), this property has some good potential, particularly given that this property is a large corner lot.  There is loads of potential for increasing accommodation on this block to maximise cashflow.

Having said that, we must consider though the council restrictions or rules on block sizes and how many dwellings we can put on the block. We must also factor in the fact that Chinchilla was affected by the Queensland floods not long ago so I suggest looking at flooding zones in the area.

Possible actions

Below are three possible course of actions we can take on this sample property. Note though that the numbers presented here are just estimates to give you ideas on what we could do with this property.  I’d recommend that you due lots of research and due diligence if you were actually going to undertake a project like this.

Action 1:  Increase yield by turning the existing study or the second living room into a bedroom and rent it out fully furnished.
With renovation and furnishing cost of $5000 and a higher rental return of $600, our yield would be neutrally geared at 8.5%. If you believe there will be capital growth in the area then this action will reap its rewards as you add more living areas to the block.

Action 2: Convert the existing study/second living area into a bedroom; then add a three-bedroom, three-bathroom house. Furnish both and rent them out.

We’ve spent $5k for converting the study into a room and now we’re adding $225k for the three-bedroom, three-bathroom house. Let’s add $20k for additional costs associated. The new property is rented at $700 per week and the existing home at $600 per week. We now have a yield of 11.4% and earning about $215 per week or approximately $12,000 per year from this property.

Action 3: Convert the existing study/second living area into a bedroom and add a duplex (two 3-bedroom, three-bathroom dwellings)—all three fully furnished.
From the $5k worth of renovation and furnishings plus $450k for the two three-bedroom, three-bathroom houses and $20k additional costs, the house is now rented at $600 per week and the two new ones at $700. These give us a yield of 12.5% and earnings of $425 per week or approximately $22k per year.

So there you have it.  It’s interesting to look at a property with an open mind sometimes and consider several options before committing to a course of action.  Trying to obtain the best outcome – whilst ensuring you can fund the project – is the key.

EPI 055 | Your Property Success with Renovation – Book club with Jane Slack-Smith

Things we talk about

Quick Tip & Action

  • Get Jane’s book and read it!
  • Going on a mining town road trip— if you’d like to be kept up to date with what we find, then sign up to Property Zest website

 


Last call for the Complete Renovation System!

Complete Renovation SystemI learned recently that it was the end of the road for one of my favourite products, the Complete Renovation System.  I was a little sad to see that they would no longer be produced as it is such a great value product to teach you a profession and systematic approach to renovating for profit.

Dean and Elise Parker, the producers of the Complete Renovation System are moving on to other ventures in their property career and so they are selling off the remaining copies of the product and offering a great discount to those who snap up the last copies.

Checkout this quick video I made about  it – and if you’re interested in the fantastic deal on offer, $600 off the price, then send me an email at kaz@everydaypropertyinvesting.com and I’ll let you know how to grab that deal!

Sorry about the lighting in this vid!!

Email me for details on how to $600 off the price of the Complete Renovation System – kaz@everydaypropertyinvesting.com