How much did this reno cost?

was property surfing and came accross this. Thought it was quite a good margin considering low entry point and location. How
Much do you think it would have cost?

sold for $235k - aug 2015

Sold Price for 21 Mann Street Edmonton Qld 4869

on sale for 335k - dec 2015

21 Mann Street Edmonton Qld 4869 - House for Sale #121553130 - realestate.com.au

 

Other than the bathroom the rest is purely cosmetic. One side of the kitchen done with new splashback. Paint throughout and venetians and floor

Quick, easy reno. If they did the work themselves- $10K or less? But don't forget you have to factor in buy and sell costs, holding costs and CGT. Good profit still.

 

DIY $15-20K
Professionals $30-40K

 

I second that.

A big factor in that reno is the cost of the flooring, could have been supplied for $20 sqm - $120 sqm.

 

Looking at the picture it looks like single sheet vinyl flooring but seeing there is new skirting board I would say it is at least laminate. That floor can make a 5k difference but I don't see them spending top money for a cheap property like that.

 

We do a full reno- new bathroom, new kitchen, new carpet and all flooring, paint, maybe remove a wall to open it up etc for $15K. We pay a tiler, electrician and plumber and do the rest ourselves.

They didn't change the carpet. Only put one kitchen bench in. No appliances. Even the bathroom already bad the vanity. $20K is over the top unless they used more tradies.

 

New bath, blinds, outside walls and floors painted, gutters painted or replaced. Outside lighting replaced.

Hot water system also looks new.

Fence..

 

Much better listing agent makes a big difference too. The first listing looks like some of the photos were taken with a camera phone.

 

i can't see it being over 15k if they did a lot themselves even still there wasn't a lot of new appliances, that fence would only be 1k in materials (i just did one) but yeah as soon as you get a lot of trades in i wonder how much that blows out. I would really like to know the cost of the flooring it looks great

 

My questions would be how much profit do they make?

Original 235000
Upfront cost 10000
Holding cost (interest rate 5% for 80% LVR) for 5 months $4000
Rates etc assume 1000
Renovation 15000
Total buying cost 265K

Agent fees (assume 2% of selling price) 6700
Sold price 335000, gross profit approx $60-63K before CGT?

 

yeah they are good assumptions @EN710

can they class this as a PPR to avoid CGT? maybe @Terry_w might be able to help there.
only other thing i can think of is the Tax deductions they can make during this time, which i assume are bugger all as the property wasn't up for rent at all.

If they held onto and rented it for 12 months to get the CGT discount and 12 months worth of tax deductions i wonder how much more attractive this would be to the bottom line? @Travelbug do you have expeience there?

 

That looks like a good profit in 5 months to me.

 

what have they put in on the floors outside in the pagalo area, looks quite good

 

Assuming your profit of $60K (there's also solicitor costs to sell plus I would count interest on 105% as that's how much money you have in the project.

So assuming a 30% tax rate that's $18K CGT. If they held it for 12 months they'd save $9K so unless it was CF+ that's a bit of mucking around to save less than $9K. Tenants could be bad, things could break down plus you have another years insurance etc. they'd only have to actually hold it for another 7 months though.

I would have wanted to do the reno in a lot shorter time myself. That's a long time for a non structural reno. We like to be in a and out in 5 weeks.