Flipping thread

A 6 months flipping in Werribee. What do you think it will get?
16 Richmond Crescent Werribee Vic 3030 16 Richmond Crescent Werribee Vic 3030 - House for Sale #128442150 - realestate.com.au
Was sold for $486k last December. A completed renovation: convert lounge into master bedroom with ensuite, new kitchen, floor, paint, bathroom, blinds, deck, simple landscape. Estimated reno cost $35k. From 3x1 to 4x2, pretty good strategy. Still no garage or carpot as of last year. My bet is around $550k-570k mark.
@Michelle Evans this is the house I inspected last year and asked you for rental prospect.

 

$705k was pretty cheap for that house in the first place. Good buy!

 

35K for the materials only? Where do you guys find trades that charge these prices?

 

No, $35k is achieveable including both material and labor. For flipping, I believe the owner either do it themself or get someone who can do it really cheap for them. If they pay a normal reno cost then it would be hard to get good profit. I break down the cost as below:
1. Main bath: $7k since it is very basic stuff.
2. New kitchen: $8k since it is very basic and small
3. Convert lounge into master bed with ensuite: $9k-$10k
4. Flooring: $3k-$3.5k for about less than 80sqm
5. Blinds: $1.5k max
6. Paint: $2.5k
7. Decking: $3k max
8. Landscape and garden clean up: $1k

So total $34k-$36k. I may be wrong though but the above figures are the prices I would expect to pay if I was the vendor. And I know traddies who can do it for me at those prices.

Regarding the potential sale price, after thinking a bit more I believe it can get around $580k but will be really hard to get over $600k for that area considering the house is quite small and no garage. It means the profit is around $20k only, not so good. @melbournian, @Westie what do you think about this one?

 

$600k or so would be my guess too. That's far too quick a flip for Werribee IMO.

I missed out on 18 Richmond Cr early/mid last year, it went for $445k.

 

Yes, too quick. No CGT discount, that area around Market road has not moved enough to guarantee a sale price of over $600k.

If you got 18 Richmond, what would you do with it? For me, that area is for at least some years buy and hold with some smart reno until the area is fully transformed. Will be ideal if the block is developable.

 

Yeah I’d have kept it. The house on the block would have to be detonated in order to put 2 on.

 

Hi guys Ours.
See original house pics on Domain sold. Address 22 Wendover Avenue Bayswater North Vic, Bought 11 feb 2015 for 507k.
Just sold see pics and transformation on realestate.com sold for 825 k
Spent 31 k on transformation with a lot of own hard work and some help from some great tradies.
Especially proud as half block in not a great suburb. Who would have thought in Baysy north

 

It looks nice enough to lease out, but you still won't get a great rental return on it. Wrong area - there are still some very special people living in and around Richmond and Muirhead, it will take a while to gentrify so I guess they're targeting an owner occupier, because there's plenty of other things for an investor to spend their money on. The most expensive advertised currently is $370pw, and that has a secure garage / quality property. Who's going to pay $570k for a $370pw return (which is unlikely, I put it closer to $340-$350pw) and the capital growth has already been taken..

 

Last weekend 120 Market road was sold at auction for $530k. It is a 3bed 1bath so I guess 16 Richmond will get higher price than that, closer to $600k. But you are right that rental yield is pretty low.

 

35 Richmond Crescent Werribee Vic 3030 35 Richmond Crescent Werribee Vic 3030 - House for Sale #128285294 - realestate.com.au
Sold yesterday at auction for $470k. Decent condition and land size. Not a great price. That's why more and more REAs advise vendors to go private sale instead of auction. It is not 2017 anymore.

 

All the windows have been replaced too and a couple of walls removed.

 

Hi guys, a few examples of great flips in Melb:

https://www.realestate.com.au/prope...4ep-pdp|sold-pdp:property-history-cta#history

Sold Oct 2017 = $1,112,000
Purchased Feb 2015 = $485,000

https://www.realestate.com.au/property/8-stewart-st-yarraville-vic-3013

Sold Nov 2016 = $1,615,000
Purchased Sep 2014 = $771,000

https://www.realestate.com.au/property/4-clairmont-ave-bentleigh-vic-3204

Sold Sept 2017 = $2,210,000
Purchased March 2016 = $860,000

Considered to be slow-ish flips. All 3 were CGT free. I am deciding weather to renovate my PPOR to sell. Some positive auction results in the last 4-8 weeks have been very encouraging. Will post if all goes ahead

 

They are mind blowing. I think a lot of it comes down to luck. I bet the Bentleigh one never imagined making 1mil or so profit on it.

 

A bit of luck but a lot of strategic planning and hard work. These results don’t happen by accident

 

That extension on the Clairmont Ave house would have cost a fair amount.

How do you know it was CGT free.?

 

I haven't flipped but had considered it when we got the numbers back.

Purchase price: $ 725k
Reno: $50k
REA Aappraisal: $850-900k

We bought the house at close to land val but thehouse was a little better than knock down condition. It was Worst house in the best street.
We changed from 4x1 to 5x2.

 

good thread this one

 

Sunshine

Sold Oct 2017 = $1,112,000
Purchased Feb 2015 = $485,000




wow this is mind blowing... didn't know sunshine can reach 1.1mil for a small block! the reno is just mediocre.

 

Post a link
I can’t see one