You Can't Make Money in Western Sydney #2

Following on from this thread
You can't make money in Western Sydney.
I thought it time to post up the second deal this year.

We bought this property https://www.realestate.com.au/sold/property-house-nsw-lethbridge+park-130874314 for $323K in April. It settled 27th May, 2019.

This auction was a department of Housing Auction. There wasn't a lot of interest, because the photos show the best aspects of the home. Plus it smelt bad.

We were planning on holding onto it for a couple of years, but the market moved, so we just sold it after a very cheap & cheerful reno. Here it is. https://www.realestate.com.au/sold/property-house-nsw-lethbridge+park-132368282

The property sold at the first open for inspection.

The numbers:
Purchase Price $323000
Stamp Duty $10045
Other Fees $1619.72

Total Purchase Price $334664.72

Add Approx Reno Costs $7500
Agent Fees & Closing $13000

Total Costs $355164

Leaving a profit of approx $96336. Not bad for a very cheap & cheerful reno. Yep, full CGT but it will be split between us, so not too bad since we've got a heap of depreciation and other deductibles to keep the taxable income low.

 

Wow that’s awesome inspiration for people that are umming and arrring about doing Reno’s. You did a lot with only 7500, guess you did most of it yourself

 

Hilarious!
Awesome! Reno looks good. Kitchen great, bathroom floor tiles not so much.

Wait..hangon...stop the bus!
You should be only buying "quality real estate", all the experts say that smart buyers only buy high quality properties that will make them soon retire rich.
Just because you made $96k in a few months, doesn't mean this is quality real estate. Please seek professional advice...

Curious on the purchase numbers, if you want to disclose. Financed?

And how did you get rid of the bad smell?

 

Well done!!! Fantastic result and great outcome.

BTW, I think the "quality real estate" argument is for longer term buy and holds.

 

Wow!
Fantastic work!
$150k+ in under 12 months good on ya!

 

Great work. This is knowledge and experience. Not graphs and stats.

 

Buried the corpses and covered in hydrated lime.

 

Here's the difference between those that do and those that run courses.

 

You did read the part about 'cheap & cheeful', didn't you. Floor tiles were existing and in good condition.

The smell, I presume, came from dirty dogs who urinated on the carpets. It was locked up for a long time before we bought it, so very, very stale. Carpets removed, glue scraped off the floors and windows open throughout the reno. No smell at all when we finished.

 

just the smell of money

 

Very interesting read.
Im tempted to give something like this a go if my current plan doesnt work out, do you think the addition of a granny flat would have improved your profit margin?
Also do you find these housing comission properties by just visiting open homes or is a particular way you go about finding them?

 

Not at all!

 

Yes.

 

Great job!. You used the $7500 very wisely and didn't move anything around but gave it a massive lift by replacing the necessary items and freshening up the rest.

PS I think the black subways on the wall was a great way to tie in with the original floor tile. Floor tiles like that have been making a come back and I used some quite retro floor tiles in a new build recently.

 

Thankyou. Yes, we spent only what needed to be spent. New oven & rangehood. Pretty, but cheap (it's a cheap property). Carpet was the most expensive item. I don't like the carpet as much as the one in the first property, but it looked better in the swatches. Brown tiles on the wall in the bathroom were free (we got a pallet of them off Facebook), flooring in the kitchen was free, Facebook again. There were a couple of windows that needed replacing, but mostly it was just hard labour and LOTS of paint.

 

This is where the young ones need to make their start and keep climbing, instead of whingeing about affordability and baby boomers having it lucky.
Prime example of making ones own luck right here!
Congrats @skater show em how it’s done.

 

That's what we did. This is grass roots where we started. We didn't have money for nice properties in nice places, so we bought what we COULD buy. Only difference this time was that we paid cash.

 

Do you prefer to flip houses or do you only see profit where there is a large land component along with the renovation?
Have you ever attempted to flip a unit?

 

Definitely some big savings made on this one. All of the freebies add up but if you're only paying for labour on some items, you're laughing.

My painter would have been more than the entire budget, so I would have done it myself too.

Did he grass come back with a bit of TLC or just watering?

 

I had my eye on that property back in March I think.