Buy do-up & Sell

[Jay]

Anyone here doing/done this??

Looking at buying cheap as possible and cosmetically in the main doing the property up. That is new paint flooring where needed, new handles on cupboards and doors etc, new kitchen bench top if needed.

Looking at Papatoeote/Papakura/Manurewa areas and maybe West Auckland, but do not know the equivalent areas out that way.

Not looking to the work ourselves, have a 9-5 job and a baby to look after

[duncan macgregor]

Anyone here doing/done this??

Looking at buying cheap as possible and cosmetically in the main doing the property up. That is new paint flooring where needed, new handles on cupboards and doors etc, new kitchen bench top if needed.

Looking at Papatoeote/Papakura/Manurewa areas and maybe West Auckland, but do not know the equivalent areas out that way.

Not looking to the work ourselves, have a 9-5 job and a baby to look after

Waste of time unless you live in it. By not doing it up yourself is it because you are unable?, if so forget it. A handy person living on the premises doing it up at nights and weekends i would say yes its a good idea if you only require help with a major. Macdunk

[Sideshow Bob]

Alot of people's "profit" have been due to the increases in market prices. I think these have pretty much all gone in the short-term, with the market cooling down. By the time take mortgage and agents fees etc etc, would only work if got a "bargain" price-wise when bought, and did much of the work yourself.

Just bought a house about 10% under registered valuation. While could make a quick 20-30K with a do-up, it looks like we're going to live in it.......

[Serpie]

Would have to agree with MacDunk on this one Jay. If you're going to pay tradesmen to do all of the work then you'll do well to break even in this market.

You make the money when you buy (under valuation) but can add value by using your own labour. I've been doing one up for the last 18 months, but have done bugger all in the last 9 months because we've got a new baby too. It's amazing how little I get done in the weekends now that our wee boy is here.

Luckily we're not living in the house that I'm doing (it's empty) because the lack of progress would be causing some friction with my better half.

I've done everything myself (it's nearly finished) but if I'd had to pay others the profits would evaporate very quickly.

[Steve]

If you're going to pay tradesmen to do all of the work then you'll do well to break even in this market.
...
You make the money when you buy (under valuation) but can add value by using your own labour.
...
I've done everything myself (it's nearly finished) but if I'd had to pay others the profits would evaporate very quickly.

In all actuality, you should obviously factor in the 'cost' of your labour to work out the 'real' profit...

[Serpie]

True Steve,

I ignore the cost of my own labour because my do-up is pretty much a hobby (which is why it's taking so long!).

If you're doing it to make money, then you should count the opportunity cost of your own labour (i.e. would you be better to work OT, and use that money to pay someone who knows what they're doing, and can get it done in a fraction of the time).

I'm always getting asked "why don't you just pay someone else to finish it for you, and sell it?". The answer is because I like doing it, and I don't have to live in it while it's unfinished, so I don't really care how long it takes.

[STRAT]

True Steve,

I ignore the cost of my own labour because my do-up is pretty much a hobby (which is why it's taking so long!).

If you're doing it to make money, then you should count the opportunity cost of your own labour (i.e. would you be better to work OT, and use that money to pay someone who knows what they're doing, and can get it done in a fraction of the time).

I'm always getting asked "why don't you just pay someone else to finish it for you, and sell it?". The answer is because I like doing it, and I don't have to live in it while it's unfinished, so I don't really care how long it takes.

You should always count in your own time Serpie. Its the only true asset we have

[STRAT]

Anyone here doing/done this??

Looking at buying cheap as possible and cosmetically in the main doing the property up. That is new paint flooring where needed, new handles on cupboards and doors etc, new kitchen bench top if needed.

Looking at Papatoeote/Papakura/Manurewa areas and maybe West Auckland, but do not know the equivalent areas out that way.

Not looking to the work ourselves, have a 9-5 job and a baby to look after

Hi Jay, done it a few times and learned a few things. Timing is everything and in my opinion your timing is bad. Interest rates are up, Market is sliding and do up costs are up. In my opinion do ups only really improve sale time. You can make nearly as much ( depending on the timeframe ) just holding it for a bit and selling again. Location is as always critical as gains from your effort are greatest in better areas.

Heres an example
In the eighties I did a buy and flick at the same time as a mate of mine. I bought in Titirangi for 65k ( 3 bdrm ) He bought a 4 bdrm in Glen Eden for the same money with more potential for improvement but in a lesser area. He maximised the potential of the do up and sold a year later for 92k. I did nothing at all to mine and sold a year later for 95k

[Serpie]

Too true Strat.

That's why I'm not worried about how long this house is taking.
You get up, and it's a nice day. You can either go and work on the house, or spend time with your family and friends. It's a no-brainer really.

However, I can say that because I'm now fortunate enough to have a level of financial security that allows me to do that. But that security has been gained by working pretty hard in the past. To get ahead sometimes you have to knuckle down for a while.

I think I'm going to have another house become empty in the next few weeks, and I've got to get that one turned over really quick, so it'll be full on for a few weeks when that happens. Such is life.

My wife bought me a guitar (and instruction DVD's) a couple of Christmas's ago Strat. One day I hope to have all of the houses done, and have some time to learn the big fiddle.

[STRAT]

My wife bought me a guitar (and instruction DVD's) a couple of Christmas's ago Strat. One day I hope to have all of the houses done, and have some time to learn the big fiddle.

Guitar is like exersize and saving money mate. A little every day .

Start today.

Tell me what you want to learn to play and I will send you some TAB