I recently advised a client at the end of a total transformation in Gawler South. Six months ago, it was a disaster. Old carpets. The yard was overgrown. Most buyers walked in and walked straight out. They saw stress. This couple saw potential. that local real estate is solid. Beneath the grime, there was a gem. They took the risk cheaply. And they got to work.
It is tough work. Unlike The Block. 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 locally.
I guided them along the way. Not with a hammer, with market knowledge. "Skip that room," I told them. "Update that," I said. Allocating the budget is the key 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. It was ugly. It was the worst house on the best street. The old saying: find the fixer-upper on the best street. Because the land value supports the investment. Buildings change; you cannot fix a location.
They bought it for low $400s. A fixed up house next door fetched high prices. The spread was huge. But it needed work. A lot of work. Roof leaks. More than paint. They did due diligence. The bones were good. So they proceeded.
Most buyers are lazy. They want to move in. 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. They had to DIY. They ripped out carpets personally. That kept costs down. They did the painting on their own. Painters are expensive. Doing it yourself saves thousands.
They spent money on the kitchen and bathroom. Kitchens and bathrooms sell houses. Updated the kitchen looking modern. It seemed luxe on a budget. Updated the vanity using modern grey tiles. They polished the floorboards. Under the old carpet was timber. Refinishing changed the look.
No structural changes. Engineering is pricey. They kept the footprint. This is smart flipping. Surface updates return the most. Painting a brick wall adds street appeal cheaply. Building on takes too long. Stick to cosmetics.
The Hard Work Of Renovation
For 8 weeks, they never stopped. People saw the trade utes. The transformation was visible. The old front became modern. The jungle garden became tidy. New grass changed the feel. The front matters. It stops the car.
Indoors, it opened up. White paint are safe. Don't use bold colours to sell. You want to appeal the masses. Neutral palette lets people to imagine their furniture. The timber added warmth. It was stunning inside an old shell.
I checked progress regularly. I kept them focused. "Don't forget the light fittings," I noted. Old lights date a house. LEDs were installed. It sparkled. The work was done. Cost: Under $60k. Time taken: 9 weeks.
Showcasing The New Look
We launched the campaign. We styled it. Empty houses echo. Furniture shows scale. It cost $2,000, it looked like a magazine. Images were great. Property management gawler looked at it because it needed no work. Owner occupiers were the goal.
The headline was: "Just Unpack and Relax." People want that. Opening day was crazy. 45 groups. Locals inspected out of curiosity. Serious people were there too. They loved the finish.
We had a bidding war after the weekend. Comments were great. "It is so light." No one mentioned the old house. They only saw the lifestyle. Renovation works.
Calculating The Profit Margin
It went for a great price. Look at the profit. Cost: $420k. Reno: $60k. Stamp duty and costs: $25k. Total cost: $503k. Sale Price: $635k. Profit: $132,000. For 9 weeks work. That is $14,000 per week. That is the reward.
Risks exist. Buying high for the wreck destroys the margin. Bad budgeting hurts you. But if you buy right and fix it wisely, profit follows. In Evanston, you can do this. You just need to find the ugly house.
If you are looking for a project, call Brad Smith. I find the dumps. I will let you know if it works. Ask the expert. I like flipping. Let's find your project. Call me today.
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