How I found the deal... Advertised on real estate.com but the figures didnt stack up originally so I passed it by. It sold with a contract price of $360,000 Approx 6 weeks later it appeared again with an open house advertised. [ Contract had crashed] Saturday went to open house for inspection. Monday submitted an offer of 315,000, negotiated to $320,000. A condition of sale was to have access for tradespersons for renovation quotes prior to settlement. Trades people commenced work the day after settlement.
Strategy My intention was to renovate and sell. My target market being those who want a smaller easily managed property but do want land also. Very suitable for a retired couple or young couple especially if they wish to have pets. As the renovation progressed I became aware of more potential in the area and decided to keep it as a rental.
Fundamental Renovations Move the carport to the left of the property in line with the original driveway At front create small courtyard with privacy screen. Landscaping New gutters - weeds were flourishing in the old ones. Painting throughout. Square off the original archway from lounge to dining area. Remove kitchen, bathroom vanity, shower screen, curtains, all floor coverings except bathroom and toilet.
What value did I add? Tiles to lounge, dining, kitchen, laundry floors. Tiles to splash backs in kitchen, bathroom. Bathroom vanity, mirror and shower screen. Carpet in bedrooms Kitchen including pantry – 2 Pak finish with granite bench tops. Not intentional to have an upmarket finish but it priced similar to a flatpack Laminex one from Bunnings. Oven, dishwasher, range hood and air conditioning. Wooden slat blinds Light fittings
How Much and How Long? Time taken for renovation – 4 weeks. My budget 5% of purchase price - $16000 Actual 6.3% $20160 Closing costs [i.e. stamp duty, legal fees, searches, titles office etc] of purchase $11588.00
Numbers Property previously rented at $300.00 per week. Now rented at $400.00 per week. Realestate.com has the median house price for at $590,000 and Unit median at $440,00 API magazine has the median house price at $455.00 and the Unit median at $348.00 The real estate valuation for the property is $428,000 to $430,000. Which having researched the area previously is the figure I had estimated for a renovated property.
Funny Story... The carpet was one of the last things to be installed. The carpet layer had seen the house in its original state so the day of installation he didnt bother looking up the street number as he thought he would remember the house. However he couldnt find the property so had to resort to looking up the number after all and was amazed at the transformation.