Reno Kings

The developed world is smack in the middle of the greatest economic crisis since the depression and Australians are standing on the edge of a recession precipice and yet there are plenty of people buying up big. The Reno Kings made their fortunes in past recessions and believe there's no reason why it can't be done again.

So you bought a house in the middle of the financial crisis you've now got two houses looking at the third are you guys crazy.

Two years ago Rob Northwood and Megan Pardy were confirmed renters, but with the end of the housing boom , the credit crunch and investors running for cover they decided now was the time to get rich. So far it's working.

We bought this one for $295 and just had the agent through yesterday and she's given us a rough price guide of about $370 for that we've spend about $8000 so $295 plus $8 and we've got it up to about $370 that includes you.

Know we've done a coat of paint right through some new blinds, took advantage of the governments insulation grants so that was basically free insulation through the roof.

Gents getting rich in a recession, is it possible?

No doubt no drama at all and it's as easy as pie.

You guys actually started out in the recession is that right.

That's right we've been renovating in times where there's 20% interest rates if I remember correctly Geoffrey.

It's a mantra the reno Kings Geoff Doidge and Paul Eslick have been following and preaching for 30 years.

Yeah there's less competition around people are worried and therefore they're not out there investing.

In tough times it's generally easy pickings when it comes to finding value for money houses that said you still need to

follow some basic rules.

Well, look you need to buy something with a twist I think the best recession proof tip we could give is buy something with high land value exactly like this house here with low house values.

So the UCV of this place here is unimproved capital value is $430,000 and it was bought for about 510, so you're not paying much for the house.

The other one would be don't over capitalise have a plan keep to your budget and keep to your time frame.

That kind advice worked for investor Tim Wright.

I bought it for just over $200,000, I spent about $30,000 on the renovation and then sold it for 280 so there was a profit or a capital gain there of about 45 or 50,000.

Tim believes now he's done it once he'll have no problem making money in the downturn.

The main bulk of the work is looking for the property, going out and looking at properties so you might find one after looking at 50 to 100 properties but that's simple enough it's a systematic approach.

The formula worked too for Melissa Xiang in Sydney 's unit market, supposedly the softest in the country.

We paid $240,000 for it, it was a studio and we turned it into a one bedroom we did quite a bit of work to it changed the floor put in some walls took a bit of wall out put in a brand new kitchen cleaned up the bathroom and then we sold it for over $300,000 less than a year later.

And there are bargains out there.

There was the place around the corner and they were asking you know a certain price and we offered a price considerably lower about $55,000 lower and almost fell off our seats when they accepted the offer.

The reno kings insist: drive a hard bargain then spend money only where it counts like the kitchen the bathroom and on paint.

The front fence one of the most overlooked attributes of a house.

That's right everyone thinks this is just a plain old fence it's not a plain old fence it's the frame around the Mona Lisa.

And don't rush into anything.

Paul you got any safety tips for renovators.

Sure have guys when you're up a ladder and its on a lean make sure its 4 - 1 ratio and never over extend yourself too much and guys never over extend yourself paying too much for your next property cheerio from the reno kings.

For more information and tips from the Reno Kings head to our website.