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.
