You Can't Make Money in Western Sydney #2

Discussion in 'Investor Stories & Showcase' started by skater, 28th Dec, 2019.

Join Australia's most dynamic and respected property investment community
  1. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    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.
     
  2. gerege

    gerege Well-Known Member

    Joined:
    23rd Mar, 2018
    Posts:
    94
    Location:
    Qld
    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
     
  3. Piston_Broke

    Piston_Broke Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    2,297
    Location:
    Love Shack
    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?
     
    Last edited: 28th Dec, 2019
    Jana, KateSydney, Archaon and 2 others like this.
  4. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

    Joined:
    25th May, 2018
    Posts:
    1,842
    Location:
    Sydney
    Well done!!! Fantastic result and great outcome.

    BTW, I think the "quality real estate" argument is for longer term buy and holds.
     
    kierank likes this.
  5. Phar Lap

    Phar Lap Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,059
    Location:
    NSW
    Wow!
    Fantastic work!
    $150k+ in under 12 months good on ya! :)
     
    skater, ellejay and MTR like this.
  6. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    7,926
    Location:
    Australia
    Great work. This is knowledge and experience. Not graphs and stats.
     
    Perthguy, KateSydney, skater and 3 others like this.
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,340
    Location:
    Sydney or NSW or Australia
    Buried the corpses and covered in hydrated lime. :rolleyes:
     
  8. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,192
    Location:
    Kimberley and NZ
    Here's the difference between those that do and those that run courses. :cool::D
     
  9. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    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.
     
  10. gerege

    gerege Well-Known Member

    Joined:
    23rd Mar, 2018
    Posts:
    94
    Location:
    Qld
    just the smell of money :)
     
    Phar Lap and skater like this.
  11. Maximus

    Maximus Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    85
    Location:
    Sydney
    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?
     
  12. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    Not at all!
     
  13. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    Yes.
     
  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    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.
     
    Perthguy and SeafordSunshine like this.
  15. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    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.
     
    Drifty, Nightowl, Brady and 7 others like this.
  16. Phar Lap

    Phar Lap Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,059
    Location:
    NSW
    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.;)
     
    Perthguy, Brady, Marg4000 and 7 others like this.
  17. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,694
    Location:
    Sydney? Gold Coast?
    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.
     
    bob shovel, Toon, Sackie and 2 others like this.
  18. Maximus

    Maximus Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    85
    Location:
    Sydney
    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?
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,340
    Location:
    Sydney or NSW or Australia
    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?
     
  20. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    5,631
    Location:
    Mt Druuiitt
    I had my eye on that property back in March I think.
     

PFA Property Expo is designed in a way that visitors can gather maximum real estate knowledge with added benefits. Different speakers will be presenting on different topics as where to buy, when to buy in this market...