I recently advised a client at the end of a total transformation near Gawler Belt. When they bought the place, the house was ugly. Peeling paint. Weeds were everywhere. People inspected it and turned around. They saw money. My clients saw the bones. that local real estate is solid. Under the ugly, was a beautiful home. They took the risk for a bargain price. The work began.
Renovating is not easy. Unlike The Block. There is mess. It is late nights. Costs go up. With a plan, it is the fastest way to build wealth in real estate. You create value. You don't hope. You make it happen. This story shows you the potential in the gawler real estate market.
I helped them from the start. Not with a hammer, but with advice. "Skip that room," I told them. "Fix this," was my tip. Spending wisely is the key to profit. If you spend too much erodes profit. It is vital to know what adds value in Gawler. That is where an agent helps.
First Impressions Of The Property
The property was sad. It was smelly. The kitchen was orange. The bathroom had pink tiles. It was the worst house in a good area. That is the golden rule: buy the worst house on the best street. The location value supports the investment. You can paint walls; you can't move land.
They bought it for low $400s. A fixed up house nearby fetched high prices. The spread was huge. It required effort. Massive effort. Roof leaks. More than paint. They checked the structure. It was solid brick. They went ahead.
The average buyer wants easy. They want to move in. They pay a premium for someone else's hard work. If you are willing to do the work, you profit. Your reward is for the inconvenience. That is the game. Fix and flip.
Crunching The Numbers Before Starting
They had a budget of $60,000. That is small to do everything. They had to DIY. They did the demolition themselves. Savings were made. They did the painting on their own. Painters are expensive. Sweat equity is huge savings.
They spent money on the kitchen and bathroom. The money rooms. Installed flat pack cabinets with stone benchtops. It seemed luxe but was cheap. They re-tiled the bathroom using modern grey tiles. Sanded the floors. Beneath the rugs were hardwood boards. Sanding and sealing transformed the house.
No structural changes. Extensions are expensive. They kept the footprint. Good strategy. Cosmetic renovation make the most money. Rendering the front modernizes it cheaply. Adding a room is expensive. Keep it simple.
Watching The Changes Happen
For 8 weeks, they never stopped. Neighbours watched the activity. The transformation was visible. The old front was rendered white. The mess became a lawn. New grass changed the feel. First impressions count. It creates interest.
Inside, it felt new. White paint reflect light. Stay neutral when flipping. You need to attract the masses. White walls allows buyers to add their style. The wood added warmth. It felt brand new but solid.
I visited regularly. I kept them focused. "Don't forget the light fittings," was my advice. Dark rooms don't sell. They put in downlights. The house glowed. The work was done. Cost: Under $60k. Time taken: 9 weeks.
Presenting The Finished Product
We hit the market. We styled it. Empty houses echo. Staging adds emotion. The investment was small, it looked like a magazine. Online it looked huge. Landlords were interested too because it needed no work. Owner occupiers loved it most.
We wrote: "Just Unpack and Relax." People want that. Opening day was busy. A huge crowd. Neighbours came to look to see the change. But genuine buyers were there too. They saw the quality.
We had a bidding war immediately. Comments were great. "It is so light." No one mentioned what it was. They only saw the lifestyle. Renovation works.
The Sale: Was It Worth The Effort?
It went for $635,000. Let's do the math. Purchase: $420k. Renovation: $58k. Stamp duty and costs: $25k. Total cost: $503k. Sale Price: $635k. Profit: $132,000. In two months. That is $14,000 per week. That is the reward.
Risks exist. If you pay too much at the start kills the profit. Bad budgeting hurts you. Purchasing well and fix it wisely, profit follows. In Willaston real estate, you can do this. Find the diamond.
If you are looking for a project, tell me. I see the ugly houses. I can tell you if it works. Get advice. I love these projects. Let's find your project. Get in touch.
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