I recently advised a client who had just finished a massive renovation project in Gawler South. Six months ago, it was a wreck. Old carpets. Weeds were everywhere. People inspected it and walked straight out. They saw stress. This couple saw potential. that local real estate is solid. They knew that under the dirt, was value. So they bought it at a low entry point. They started renovating.
Renovating is not easy. Unlike The Block. It is dust. Long weekends. It is budget blowouts. If you are smart, it is the best way to make money in real estate. You create value. You don't wait for the market. You create the growth. This story shows you the potential right here in town.
I advised them through the process. I didn't paint, but with advice. "Save on that," I suggested. "Fix this," I recommended. Knowing where to spend is critical to a good return. If you over-capitalize erodes profit. You need to know what the market pays for locally. That is where an agent helps.
First Impressions Of The Property
The property was sad. It smelled of old cigarettes. The cabinets were 1970s. It was ugly. It was the worst house on the best street. The old saying: find the fixer-upper in a prime spot. Because the land value supports the investment. You can paint walls; location is forever.
The purchase price was low. A renovated home in the same street were worth mid $600s. The margin existed. It took cash. Serious renovation. Plumbing issues. It wasn't just cosmetic. They checked the structure. It was solid brick. They went ahead.
People want turnkey. They hate work. They pay a premium for a done house. If you can to renovate, you get that money. The market pays you for the inconvenience. That is the game. Fix and flip.
Crunching The Numbers Before Starting
The limit was sixty thousand. It is tight for a whole house. So they had to be smart. They did the demolition themselves. That saved $5,000. They brushed and rolled by hand. Labour is dear. DIY painting is huge savings.
They invested in the wet areas. Kitchens and bathrooms sell houses. They put in a new IKEA kitchen with stone benchtops. It seemed luxe but was cheap. Fixed the shower with white and grey. They polished the floorboards. Hidden away were hardwood boards. Sanding and sealing transformed the house.
No structural changes. Engineering is pricey. Used existing layout. This is the way. Cosmetic renovation make the most money. Rendering the front adds street appeal inexpensively. Building on costs tens of thousands. Don't overcomplicate.
The Hard Work Of Renovation
For 8 weeks, they never stopped. Locals noticed the skip bins. It started to shine. The dark facade became modern. The weeds became a lawn. Simple landscaping changed the feel. The front matters. It stops the car.
Inside, it opened up. White paint reflect light. Don't use bold colours for resale. You want to appeal everyone. White walls allows buyers to add their style. The polished floors gave character. It looked like a new home with character bones.
I checked progress regularly. I kept them focused. "Change the lights," I noted. Old lights date a house. LEDs were installed. It sparkled. It was ready. Budget: On track. Speed: Fast.
Presenting The Finished Product
It went live. We used professional staging. Vacant rooms look small. Styling sells. It cost $2,000, the images were amazing. Images were great. Landlords were interested too it was tax depreciation ready. Families were the target.
The headline was: "Just Unpack and Relax." People want that. The first open inspection was crazy. Hundreds of people. Neighbours came to look at the renovation. Real bidders were there too. They saw the quality.
Offers flooded in after the weekend. Comments were great. "The floors are great." They forgot the old house. They only saw the lifestyle. Flipping is powerful.
The Sale: Was It Worth The Effort?
We closed the deal for $635,000. Check the numbers. Cost: $420k. Renovation: $58k. Stamp duty and costs: $25k. All in: $505,000. Sold: $635,000. Clear profit: Over $130,000. For 9 weeks work. Great wages. That is the reward.
Risks exist. Buying high for the wreck ruins the deal. Bad budgeting hurts you. Purchasing well and control costs, you win. In Gawler, you can do this. Find the diamond.
If you are looking for a project, tell me. I list the wrecks. I can tell you if the numbers stack up. Don't guess. I like flipping. Start your journey. Contact me.
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