Elizabeth & Mike – Blacktown Siebel, NSW
Real Estate Rescue Graduate
Background
This DGI Graduate found this property from court listing letter and obtained it through a takeover deal. The graduate originally planned it to be a renovate and flip however ended up subdividing the lot sold part of the land and stayed on the other part as there family home.
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs.
| Expenses | Cost |
|---|---|
| Purchased for | $581,000 |
| Renovation | $92,200 |
| Legal | $3,900 |
| Stamp duty | $21,600 |
| Penalty interest | $6,300 |
| Holding | $44,000 |
| Total cost | $749,000 |
| Total net profit | NIL |
Before and after photos from the renovations
Kitchen before
Kitchen After
Bedroom before
Bedroom after
Living room before
Living room after
Room before
Room after
Top 4 Learnings:
- Always, always, always make sure your Plan B covers money partners!
- Changing strategy is not the end of the world – in fact it is sometimes the best option.
- Renovate all of it and don’t skimp on certain areas
- Selling the property ourselves mitigated our loss, and was easier than we thought.
Unexpectedly we were unable to refinance due to COVID-19 because Mike’s offshore work was cancelled.
We chose to move on despite the loss, to repay our money partners and to port the mortgage to a new profitable deal.
