The property boom of recent years and the continued popularity of renovation shows like The Block, fuel the dream to buy property for renovating, and selling at a profit.
Investment purchases such as this can be prosperous when property prices are surging, but often, we at Search Find Invest, are asked, “Is this still a viable option in today’s market?” And the answer is, it can be.
As the buyer, you need to know your market, because the profit is made during the purchase phase. If you don’t have the time or resources to conduct extensive due diligence the risk does not outweigh the potential reward in a ‘buying to flip’ purchase.
Due diligence before purchase includes understanding the below:
✔ Historical values for this property and others on this street
✔ Demographics of the area and their unique set of needs
✔ Structural integrity of the property
✔ The impact of planned and proposed new developments in the area – investments in infrastructure, transportation, schools, amenities, shopping centres
✔ Zoning regulations and building restrictions of the local area - One level residential vs Multi-level dwellings
✔ What are you budgetary limits to avoid to overcapitalising
✔ Tradespeople quotes to provide estimated project costs
✔ Understand the hidden costs
We have seen countless clients achieve remarkable financial results with their renovation projects across Sydney, and every time the difference in their success has been proper due diligence.
As an example, one of our renovation clients was looking for a larger scale investment project Before negotiating the purchase on this off market Sydney property, we completed exhaustive research and enlisted our in-house renovation experts to evaluate potential opportunities and pitfalls.
This property boasted a large home in a premium street and suburb, with solid bones, on a good sized block, and with expansive views. The finishes were dated, and the home had a poor floor.
The results paid off and our client continues to invest in renovation projects.
Purchase price – $2,200,000
Renovation cost – $1,000,000 approx.
Market value after renovation – $4,450,000
Rental return before renovation – $1,350 per week
Rental return after renovation – $3,200 per week
Works included:
If you're interested in purchasing property to renovate and sell for profit, but not sure how to proceed, call on 1300 132 970 to speak to our property and renovation expert or visit www.searchfindinvest.com.au
Address: 520 Oxford Street, Tower 1, Level 23, Bondi Junction NSW 2022
Postal Address: PO Box 2192 Bondi Junction NSW, 1355
Telephone: 1300 132 970
E-mail: [email protected]
