Paul & Rachael – Narre Warren South, VIC

Real Estate Rescue Graduate

The Background

Paul & Rachael had been looking on the market for their target area for 3 months before they decided on Narre Warren. When Paul found this property, it needed quite a bit of work done, but Paul could see the potential in it. They had to source a money partner through the DGI community to fund this project. Paul & Rachael were able to secure the property for around 10% under market value, and after renovations, they were able to make a profit.

The Number

These costs include the purchase price, stamp duty, holdings, renovations, and relevant adjustments, including the selling costs.

Expense Cost
Purchase price $515,000 (Discount – $105,000)
Purchase Cost $29,570
Renovation Costs $64,500
Holding Cost $3,500
Other Cost $17,430
Total Cost $630,000
Sale Price $700,000
Profit $70,000

Before & After Renovations

Backyard Before

Before Backyard Area

Living Space Before

Kitchen Before

Backyard After

Backyard Area After

Dining Area After

Kitchen/Dining After

Top Learnings:

  • Importance of getting all strata documents and reading them carefully – don’t trust agents to tell you everything – asbestos on the backing of old vinyl (nearly 20% of our renovation budget)
  • Clear communication with strata and residents helps with a smooth renovation in a large complex with many units.
  • Units have proved effective for us as we are able to use cash for a quick sale to seal the deal – don’t have to go through the hassle of getting finance.