Andrew – Dromona, VIC
Real Estate Rescue Graduate
The Background
Andrew and his business partner Fiona were searching in the Mornington Peninsula area for their first deal. They were looking at a particular street due to the great sea views. This property was the worst house on the street and came onto the market. Andrew and Fiona found out the agent were from out of town and therefore was unable to do many open houses. They were able to secure the property very quickly and at below market value. After a few months of renovations, they were able to sell the property at a higher price than initially projected.
The Number
These costs include the purchase price, stamp duty, holdings, renovations, and relevant adjustments, including the selling costs.
| Expense | Cost |
|---|---|
| Purchase price | $470,000 |
| Buying Cost | $28,000 |
| MP’s Cost | $50,000 |
| Renovating Cost | $120,000 |
| Selling Cost | $12,700 |
| Total Cost | $680,700 |
| Sale Price | $727,500 |
| Total Profit | $46,800 |
Before & After Renovations
After Living Room
After Decking
After Bedroom
After Kitchen
Top Learnings:
- Real estate agents are our friends
- Resilience is essential
- The price of money is expensive
- Carefully select your property, be patient through the buying process and have a good understanding of your intended outcome
- The first deal is not about profits rather about momentum and learnings
