Karen – Brighton, SA
Real Estate Rescue Graduate
Background
Karen project was a renovate and flip, the owner was moving into retirement, Karen was able to get a 10% discount on the property at $35,000 off the listed price of $440,000.
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs.
| Expenses | Cost |
|---|---|
| Purchase price | $ 335,000 |
| Stamp Duty | $ 13,080 |
| Transfer Fee | $ 2,608 |
| Conveyancing/Legal Cost | $ 1,200 |
| Renovations | $37,000 |
| Holding cost during renovation | $ 1,500 |
| Cost of sale | $ 11,945 |
| Total Cost | $ 402,333.5 |
| Total Net Profit | $ 37,666 |
Before and after photos from the renovations
Living Room
Kitchen
Bathroom
Side of house
Top Learnings:
- A no isn’t always final. My initial offer of $330k was “respectfully declined”. The agent came back to me within 3 days, advising that if I could go to $335K, the property was mine.
- Always look for win/wins. Following discussions with the homeowner’s son, we bought the 30 day settlement forward to 14 days to allow the family to avoid further penalties.
- Flipping in quality suburbs is even more important in an environment such as we currently have. Despite the tumultuous times, I’m confident this property will still sell relatively quickly, to downsizers wanting to stay in the area.
