Rookie renovators’ lesson
Homeowners turned rookie renovators, Dulsiri and Lakmi, bought this western Sydney home in December 2016 with the aim of building a property portfolio for long-term wealth accumulation. The couple deliberately bought an “unrenovated” property so they could cosmetically renovate it and add instant equity. On completion of the renovation, they sold the property for a great profit – even in spite of making a classic rookie mistake.
They bought a good unrenovated property, but on the wrong side of the suburb, where property values are substantially lower than the good side. That meant they could not afford to splurge on an expensive reno, or they would risk overcapitalising and losing money on the sale. With Cherie’s help, they renovate their whole house, inside and out, on a minimal budget.
RENOVATION STRATEGY:
Cherie’s renovation strategy was to work with the rookies and cosmetically modernise and clean the property up, to correct an almost non-existent kitchen, refresh the old bathroom and to install built in wardrobes in all 3 bedrooms – on a very tight budget of just $15,000 for all materials, labour and GST.
The specific scope of works included:
- Install a brand-new kitchen with new kitchen appliances.
- Internal & external painting of the whole house in its entirety.
- Install built-in wardrobes to all 3 bedrooms.
- Install new lighting & ceiling fans throughout the property.
- Install new window furnishings.
- Cosmetically transform the bathroom and laundry with specialty paints.
- Install new external plants and garden beds.
- Paving paint to front porch and rear patio floor.
BUDGET:
Property purchase price: $472,500
Renovation Done in 7 Days
Renovation Spend Total: $15,785
Property Breakeven Point: $488,285
Property Sold Price (Immediately after reno in April 2017): $565,000
Gross Profit*: $92,500
* (Approximately $40,000 in legals, finance, advertising & agents commission etc). Capital gains tax also payable; dependent on owner’s personal circumstances.
If you’d like to learn more about budget busting renovations like this one then CLICK HERE to read about our 3 Day Renovation Training events.
