Anare – Eltham North, VIC
Real Estate Rescue Graduate
Background
Anare found this deal through the court listings and letter writing. The property was owned by a company which meant that Anare had to take over the company to secure the house. In the process of getting to know the owners, Anare found out that the property could be subdivided. He ended up renovating the house and keeping it as a family home, and subdivided the land at the back and sold that for a profit.
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs.
| Expenses | Cost |
|---|---|
| Reno costs (cosmetic): | $49,000 |
| Subdivision | $125,000 |
| Owner(company) payment | $75,000 |
| Arears and costs | $131,000 |
| Sale price of land: | $450,000 |
| Profit (50/50 Split with Joint venture) | $247,000 |
Before and after photos from the renovations
Backyard Before
Backyard After
Kitchen before
Kitchen After
Bathroom before
Bathroom after
Top Learnings:
- Subdividing takes longer than anticipated – Allow for more time
- Allow for extra costs and be flexible and creative If you can dream you can have it
- Renovate all of it and don’t skimp on certain areas
- With this deal I ended up buying the property and I lived in it while we did renovations and subdivisions. I took over the loan repayments and money partner covered all the costs for renovation and subdivision. It was a big job but we got there and I have been living in it for the last 5 years and the ex owner and I are friends and stay in touch. We gave him more money from profits…it wasn’t in any agreement and he was as emotional as were we.
