Your renovation profiled in API Magazine

Hi all,
The editor has asked one of my fellow journos to profile a renovation project where the investor made back at least double the cost of the renovation work (e.g. "We spent $50,000 on the renovation, and then sold the property for $100,000 more than what we paid for it originally"). They want to avoid projects where the market drove all the capital gain of course - the gist is about buying well and being smart with your project. A quick turnaround and big profit always read well too (obviously).
It would involve disclosing figures and discussing the process, as well as photos of your good self/selves and the property.
If anyone is interested, or has any questions, feel free to private message me.
Cheers
Kieran

 

Hi Kieran

"They want to avoid projects where the market drove all the capital gain"

Well that cuts out Sydney for the last 2.75 years LOL
If I think of any clients I'll let you know

 

Too true Jacque! Was going to say that in the post but then thought there might be someone with a handy tale to tell from the great southern state
Look forward to catching up with you on the phone sometime soon too.

 

Hi Kieran,

I'm currently finishing a renovation project in Bald Hills, 21 Midland St. to be exact. Theres pics online as it is being advertised for rent now. I'll have spent about $35k on it in total and it would be revalued at about $70k more than I bought it. I'm not planning on selling however, so I'm not sure if it would fit your brief.....

Let me know if this would be of interest.

 

Is there a free subscription on offer for the story?

 

Interested to see how this property get's sold (now you know who the owner of the property!!). Leichardt had a 60% median growth from 2008 to 2015.
So the unrenovated purchased $950K in 2008, would fetch $1.5M by natural growth, so Barber is expecting $2.5M sale
http://www.realestate.com.au/property-house-nsw-leichhardt-120388361

 

Beyond my payscale Bob but I'm sure a few issues could be sent your way without the boss worrying too much.

 

Wow! I'm actually a big fan of capital growth via the market myself (maybe I'm just lazy ). I wonder if she's hoping for closer to $3M

 

You might find a promo coming your way, if suddenly all pchat members here is reading API every month for next 12months, courtesy of Kieran@API (wishful thinking)

 

I'll take whatever support I can get at my advanced years!

 

While this might sound impressive initially, this fictional scenario sounds like it wouldn't have been worth the effort. Once you factor in holding costs, stamp duty, legals, opportunity cost, agent's commission, CGT, advertising costs, etc, I would be surprised if you'd come out on top.

I find that often articles in investing magazines seem to not make the reader aware of this, which is a little disappointing considering that the readership would likely be largely comprised of novices.

 

Fair call Spludgy - and I suppose we'd like to profile the most profitable/successful projects we can but not everyone is keen to be profiled (which is totally understandable). Often its a case of just being able to pick the best available case studies to profile, rather than landing awesome ones each time. I hope that there's always a lesson or story beyond the numbers when writing a pice.
Anyway - it's a fair point you make.

 

@spludgey same as the shows on tele, your basically getting the agent a bigger commission and donating more to the gov. Holding is a much better strategy

 

If you hold it works out.

 

@Daisycutter4 Does it need to be a sell? What about a reno that costs 'x', reval and pull double costs in equity?

To be honest I don't know how many reno-and-sell types you'll find here, as mentioned the transaction costs make the strategy too unappealing unless you're in a hot market, which you've said you don't want.

 

Should be plenty of those around.
Did one myself (except x8 - the market may have had a little to do with it)

 

It probably could be an equity gain situation - I'll check in with the journo doing the story to see which direction she's heading in. Thanks for that Jess.
Kieran

 

Actually Jess - YES! is the answer. Angela will look at case studies showing equity gain rather than profit on sale.

 

@D.T. There you go mate. Keen to put your recent purchase in a magazine?

 

Interesting. Mine's in a regional area, so more impressive without those crazy Sydney gains I guess.