Lisa & Vince – Doncaster VIC
Real Estate Rescue Graduate
Background
The property is a deceased estate which had only one beneficiary. This Doncaster deal was found through a Real Estate Agent that went on for auction. The graduates had initially bid on it; however, the owner decided not to go ahead with it. Three to four weeks later the owner came back, and after a hard negotiation, the Graduates was able to obtain the property at the price they were after well below market value just for the land ($180,000) discount. The property strategy is for a renovate & flip dedicated to a higher-end market.
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs.
| Expenses | Cost |
|---|---|
| Purchase Price | $920,000 |
| Stamp duty | $46,000 |
| Conveyancing | $2,800 |
| Building insurance | $1,000 |
| Utilities | $1,500 |
| Rates | $800 |
| Gas connection | $500 |
| Loan Interest | $13,800 |
| Renovating Cost | $216,511 |
| Agents fees | $20,800 |
| Total cost | $1,209,811 |
| Sale Price | $1,600,000 |
| Profit | $390,189 |
Top 3 Learnings:
- Get contract looked over by conveyancing agent
- Never give up looking as the right deal could be the next one that comes along. We looked at over 120 properties before buying this one.
- Build good relationship with agents and know your area
