You can't make money in Western Sydney.

Discussion in 'Investor Stories & Showcase' started by skater, 9th Sep, 2019.

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  1. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    With houses being somewhat on the nose, we decided now was the time to check out some auctions. I do love me a good auction, especially when I'm the only one bidding.

    We bought this property 5 Popondetta Road, Emerton, NSW 2770 for $350500 in April. It settled 17th May, 2019.

    This auction was a lot of fun. It was listed by an out of area Agent, who didn't know much about the area, and had told the vendor the best way to sell was by auction. That was the first mistake! For them, not for me. :) Anyway, the auction stalled & the vendor bid $350k, I came back with "and a half", and it was passed in to me. The vendor was there & they went into the house, while the Agent shuffled me into the garage. That's when the fun began.

    After speaking with the owner the Agent came running out to me. "We nearly there! You pay $390k! Then it yours" Haha, NO. "It good value, it good value" NO "Shops just up street" "This good area". No, it isn't worth it. My bid is $350500.

    He goes back to the vendor. Five minutes later he comes out to me again, with $370 written on a piece of paper. "You pay this! This good price. We nearly there! You get good deal" No, the house isn't worth that much.

    He goes back to the vendor, then back to me again. "That best price!" No, it isn't. "It really good!" No, I'm sorry, but I can't go any higher. I pull out my phone & I look up a sale from Lethbridge Park, just a few streets away & show him the listing. 3 Leyte Avenue, Lethbridge Park, NSW 2770 His face drops. "Oh, where this?" Just up the street. "I take phone?" Yes.

    So he grabs my phone & runs back to the house. Next thing he comes running back to me again. "Congratulation! Congratulation! You buy house! It yours!"

    What the Agent didn't know, was that the house that I showed him was in dreadful condition and was a department of housing sell off, which he would have known if he was a local. It's just been re-sold after an expensive reno.

    We were planning on holding onto it for a couple of years, but plans change, so we just sold it after a very cheap & cheerful reno. Here it is. 5 Popondetta Road, Emerton, NSW 2770

    The property sold at the first open for inspection. There were 19 parties who went through it, and multiple offers. Some lowballing, but that was never going to happen. :)

    The numbers:
    Purchase Price $350500
    Stamp Duty $11282.50
    Other Fees $1995.01

    Total Purchase Price $363777.51

    Add Reno Costs $6500
    Agent Fees & Closing $13000

    Total Costs $383277

    Leaving a profit of approx $66500. 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.
     
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  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    @skater I'm impressed. You have the makings of a great BA lol :)
     
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  3. paulF

    paulF Well-Known Member

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    Great post! I haven't been following the Sydney market for a very long time and never would have imagined that there are still houses that sell in Sydney for that kind of money!
    I know it's in the west but had the impression that nothing there goes for less that 600-700k!

    Well done again.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    I recall commenting on this one a while ago, advert was referring to Campsie (Not a great start).

    That's a great quick flip. Bathroom looks great for a little work, carpet covers a myriad of sins too.
     
  5. Morgs

    Morgs Well-Known Member Business Member

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    I was wondering if it was possible to flip a profit in the current market... we can't couldn't find anything in our travels so well done :)

    Do you think you'd be able to do it again now that things have become a little more heated? I suppose it is a matter of finding that right opportunity?
     
  6. Redwing

    Redwing Well-Known Member

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    I was hoping to see the reno before and after photos @skater :)
     
  7. Sackie

    Sackie Well-Known Member Premium Member

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    tenor.gif
     
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  8. Joseph Skewes

    Joseph Skewes Well-Known Member

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    Paint throughout, bathroom wall tiled & new basin/cupboard/mirror, kitchen cupboards cut/stove positioned, carpets & floating floors throughout, garden maintenance and new plants, exterior painted, Venetian blinds throughout, etc. Seems very resourceful for $6500. Did you do most of the work yourselves?
     
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  9. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    Thankyou!


    Thankyou! Yes, still bargains to be had, but you need to know where to look.

    It's always when the right opportunity comes along.

    If you scroll through the agents photos, you'll see them. :D

    We did all the work. Floating floor free from Marketplace. Pallet of ugly brown tiles free from Marketplace. They look great when teamed with white tiles, and more for the next place. :D

    I did most of the painting while hubby worked on the the stuff I couldn't do. He's an electrician by trade, but a superb handyman as well. Almost correct in the work that was carried out. Paint inside & outside, new vanity & tiles in bathroom & old tiles had grout removed re-grouted & painted white. Kitchen was just repositioned to fit the stove next to it, but needed extra tiles, so, as the new ones were slightly different in colour, all the kitchen tiles were painted too. No new plants, just tidied up by me, and some trimming of others. The most expensive thing was the carpet. Blinds just cheapies from Bunnings @ a little over $300.
     
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  10. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    The one thing that went in our favour was the lending criteria. A lot of investors can't get the funds & first home owners won't buy at auction. As we were a cash buyer, it was easy for us.
     
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  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Fantastic work - so much improvement for your $6500 outlay - you guys are awesome.
     
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  12. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    Most of the work was painting. It's amazing what a good paint will do to a place.
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    Even a bad paint job, as long as the colour is right.
     
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  14. Sackie

    Sackie Well-Known Member Premium Member

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    You two are so handy, What an ability to have! Fantastic stuff. Classic case of buying BMV.

    Don't you just love it how some others keep raging on that there's no money to make in the current markets.:D
     
    Last edited: 9th Sep, 2019
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  15. customundo

    customundo Member

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    thanks for the post @skater - thoroughly enjoyed the read :)
     
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  16. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    ;) There's money to be made in all markets. :D
     
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  17. Tonibell

    Tonibell Well-Known Member

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    Great stuff - good buying and a practical reno.

    Noticed that the potential rent has gone down after the reno !
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    The reno wasn't that bad was it? :rolleyes:
     
  19. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    The original agent had no idea!
     
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  20. willair

    willair Well-Known Member Premium Member

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