I recently advised a client who had just finished a massive renovation project in Willaston. When they started, it was a wreck. Peeling paint. 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. They purchased it at a low entry point. They started renovating.
Renovating is not easy. Reality TV lies. It is dust. Hard labour. It is budget blowouts. With a plan, it is the best way to build wealth in real estate. You make profit. You don't wait for the market. You build it. This story shows you what is possible right here in town.
I advised them through the process. I didn't build, but with advice. "Save on that," I suggested. "Spend money here," was my tip. Spending wisely is the secret to making money. Spending foolishly means you lose. You must understand what adds value in Gawler. That is my value.
The Ugly Duckling On The Street
It was dated. It was smelly. The kitchen was orange. The bathroom had pink tiles. It was the eyesore in the neighbourhood. That is the golden rule: buy the worst house in the best location. The street appeal is already there. You can fix a house; you can't move land.
They bought it for low $400s. Finished properties next door were selling for $650,000+. The gap was there. It required effort. Massive effort. Roof leaks. It was deep. They did due diligence. The foundation was okay. So they proceeded.
Most buyers are lazy. They want to move in. They pay a premium for someone else's hard work. 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. That is not a lot for a full renovation. So they had to be smart. They did the demolition themselves. Savings were made. They brushed and rolled by hand. Trades cost money. DIY painting is huge savings.
They spent money on the kitchen and bathroom. Kitchens and bathrooms sell houses. Updated the kitchen looking modern. It looked high-end but was cheap. They re-tiled the bathroom using modern grey tiles. Restored the wood. Beneath the rugs was timber. Polishing them made it pop.
No structural changes. Extensions are expensive. They kept the footprint. Good strategy. Visual changes return the most. Painting a brick wall modernizes it cheaply. Adding a room takes too long. Stick to cosmetics.
The Transformation Process Begins
During the reno, they were there daily. Neighbours watched the activity. Changes happened fast. The old front was painted grey. The jungle garden became a lawn. Simple landscaping fixed the curb appeal. The front matters. It creates interest.
The interior, it became light and bright. Neutral tones reflect light. Avoid crazy walls to sell. You need to attract the masses. Neutral palette lets people to add their style. The timber looked rich. It felt brand new but solid.
I visited regularly. I gave feedback. "Change the lights," I noted. Bad lighting is awful. New pendants went up. The house glowed. Time to sell. Total spend: $58,000. Duration: 2 months.
Showcasing The New Look
We launched the campaign. We hired furniture. Empty is cold. Staging adds emotion. The investment was small, it looked like a magazine. The photos stopped the scroll. Rental investors enquired because it needed no work. Owner occupiers loved it most.
The headline was: "Just Unpack and Relax." People want that. The first open inspection was packed. 45 groups. Locals inspected out of curiosity. Serious people were fighting for it. They saw the quality.
Offers flooded in after the weekend. People loved it. "The floors are great." They forgot the past. They just saw the new home. This is the power of presentation.
The Final Auction Result
We closed the deal in the mid $600s. Look at the profit. Cost: $420k. Reno: $60k. Expenses: $25k. Break even: $500k. Result: $635k. Clear profit: Over $130,000. For a short project. That is $14,000 per week. That is why people flip.
You can lose. Overpaying initially ruins the deal. Bad budgeting hurts you. Smart buying and fix it wisely, profit follows. In Evanston, the gap exists. You just need to find the ugly house.
If you want to flip, register with me. I find the dumps. I will let you know if there is profit. Get advice. I love these projects. Let's find your project. Get in touch.
informative page details