Renovating Brisbane Property – Character Home

Renovating Brisbane Property – Character Home

0
Renovating Brisbane Property – Character Home

Owning the right investment property can be so rewarding. Not only do you have an income producing asset but you also have an appreciating asset.

Knowing which property to buy can be extremely difficult and will vary depending on what your trying to achieve (your strategy). if your renovating, knowing how to renovate your property for profit can be equally challenging. Having an accountant that specialises in property can be invaluable. they can do the numbers, provide you a strategy, set you up a property trust and minimise your tax and more importantly provide you ongoing property accountant tax advice. Your buying strategy will ultimately determine what type of property you should buy. You would not consider buying a renovator if you don’t have the cash reserves and you wouldn’t buy a waterfront property as an income producer if your loosing $20k per year. 

I recently bought a property that was a character home to flip, it needed a lot of work both inside and out to bring it up to scratch.

These sorts of properties are great for making money. After a 12mth build time, new garage, an amazing deck and an entire remodel the property was ready to go on the market. We expected the property would increase in value around $150k on top of all the cost after the extensive renovations.

It was listed with a local real estate agent, the timing for the sale could not have been better listing in mid September. The gardens had sprung to life and the lawns were green, the temperature was warming and the pool looked inviting. The property was looking fantastic.

Every weekend we would get up early, go crazy on the pool, do a quick clean & tidy in all the rooms and get ready for the open house. Our first open house brought 5 couples with mixed reviews. The second open bought 2 couples. The third open had no takers likewise was the forth and fifth… what was going on? were we over priced? was the house not as appealing to the market as we thought it was? What do we need to do to increase activity? all these questions were going through our minds.

After several open houses with poor turn out we decided to do inspections by appointment only, which took the pressure off the weekend clean up and get out. We were now cleaning on demand… I think that was crazier!

After next to no interest and poor economic news stagnating growth, and very few local sales we were started to contemplate: Did we over capitalise? are buyers only wanting cheaper properties in our area? did we need to rethink the price. The feedback on the property was mixed. Of the couples viewing the property, they either loved it or hated it.

Seems the house was polarising couples, it had lofts, quirky brick feature walls, Timber ceilings in the lounge, mixed with modern appliances, granite benchtops and wall to ceiling tiles in the bathrooms. The Polarisation also bought with it, the bargain hunters trying low ball non committal offers.

As the market entered the new calendar year (now 3 months on the market), and with the price drop by $50k we saw a flurry of activity.  Suddenly sentiment for housing had changed and a lot of positives were coming from the media, we were getting more interest be it at the lower price. Finally in late January we received an genuine offer at $20k below the new listing price.

We were now down to $80k profit overall, it was lower than expected but at a time when most property were stagnating it was a good result. So we took it.

It took a few months to get the deal over the line and I cant believe how many times I cleaned up, got the pool sorted and blew leaves off the drive but it was now worth it. Character homes have certain appeal and it takes a lot longer to find a buyer that is willing to part with their hard earned cash. Having a buying strategy and packing it with some conservative profit calculation estimates will safeguard your investment decisions as it did with ours… just in case the market conditions change.

Evolution Accountants are property specialists and I can help you sort through the properties on the market looking at only properties that suit your strategy. We also run one on one property sessions to assist property buyers to understand the different types of properties, the property’s true value and how to effectively minimise tax. It make sense to deal with a Brisbane property accountant that specialises.

 

 

 

About the Author

Leave a Reply

    About

    This is the deafult sidebar, add some widgets to change it.