Case Study - Renovations for Profit
By Bernie Tynes
Over the past 4 years, Infinity Property Agents have managed a two bedroom apartment in Virginia Street, Rosehill. The average price of a two bedroom apartment in Rosehill was $425,000 (see list below).
The property was generating a rental income of $350 per week, with an estimated sale value of $390,000 to $400,000 in its current condition. The owner advised that they wanted to sell the property “as is” without any renovations.
The Director of Infinity Property Agents, Michael Kurosawa advised the client that the best option to achieve a premium sales result was for the property to be vacated, renovated and sold. We estimated that we could achieve a sale price of $500,000 based on a $30,000 renovation spend.
Renovation to Sale Service:
A common error for property owners is to overspend on renovations. Having Infinity Property manage the renovations resulted in total renovation costs of $30,500. We made changes to the kitchen and bathroom. The property was painted and new carpets and blinds were installed. The property was listed for Auction and within three weeks the owner accepted a pre-auction offer of $510,000. Although the new owner wishes to live in the renovated home, a new rental value has been estimated at $420 per week.
Good advice and selected renovations carried out by Infinity Property Agents resulted in a net benefit to the owner of an additional $80,000. Not only did we come in on budget for the renovations, but we also achieved above our best sales estimate.
SALE: $510,000 – August 2015
To find out how we can achieve a similar result for your property, contact Michael Kurosawa on 0411 641 662 or our sales team on 9699 9179.