Did anyone see the show last night? One more to motivate people to think they can make a quick buck by flipping........ without factoring in the full costs or pay too much as many people do, or overcapitalise.
details
bought at DOH auction $319k ... a bargain apparently!!! A valuer put $320k on it, so on the money, not a bargain.
Owners wanted to spend $24k on reno, Cherie convinced them to spend the magic 10% of pp which was $32k. I say you spend what you need to spend based on condition and pp, just don't overcapitalise!
End valuation was $400k, with $32400 spent on reno - with owners doing quite a bit of the work. (I assume this also covered furniture staging costs.) A huge $47600 profit on valuation ($48600 on pp). Now this would motivate anyone to do flipping ....but is that the real profit
I punched the numbers into my spreadsheet which factors in about 98% of costs and based on 28 day settlement, 16 weeks to flip from settlement to settlement, 100% borrow costs etc etc etc. There are variable such as solicitor and agents selling costs, rates/insurance etc but my net profit for this reno is around the $18k, a loooong way from $48k for those who look at things simplistically. If they had spent just $24k on reno the profit would not have been any greater, probably less as the roc coating over the fibro was not planned.
Now Cherie is no dummy, she knows these figures ... but that would not make as good advertising would it .... (and I do take my hat off to her for what she has done over the years and enjoy watching/reading about her various projects)
A couple of things I thought were a waste of time, that god awful "red privacy framework" that replaced the verandah railing - it has now been toned down. I know Cherie likes to add a highlight such as a red front door but that was horrible. She also changed the side the front door was hinged on to open aginst wall - good idea, but she added privacy slats inside the loungeroom to screen the lounge from anyone standing at the front door ...which is what the front door swung the other way did!!! I have seen Cherie use these slats in other renos and I think a great idea, but implemented it here without thinking .... in auto mode!
BTW, I did not see any asbestos specialists on the job The bathroom, the laundry, pulling off the external joiner strips over the fibro before roc coating which would have pulled out small pieces of fibro with many of the nails. The guy taking off the splashback tiles above the laundry sink and making a big hole in the wall must have been thinking don't put this on TV - but lets give them the benefit of doubt that the copper pipes in the wall were not original (no gal seen) and the wall had been resheeted since 1986.
I did some searching to see when the house was bought and if sold since. The property address is 40 Pank Pde Blacktown and shows it was sold on 11 December, and is now listed for rent @ $ 400pw. What happened to the flip??? Maybe they decided to hold and just suck out the equity. But it is now May, they have had holding costs for 4 months ....although they don't have selling costs so that saves them about $12k and 4 months is what I had allowed in calculations to settle on sale. I wonder what was happening in the meantime, can't find any previous sales adds for it since renovated.
If the owners are on this forum it would be good to hear the details and thoughts from their side (likely students of Cherie which is how she got onto flip)
Some links
before
after
details
bought at DOH auction $319k ... a bargain apparently!!! A valuer put $320k on it, so on the money, not a bargain.
Owners wanted to spend $24k on reno, Cherie convinced them to spend the magic 10% of pp which was $32k. I say you spend what you need to spend based on condition and pp, just don't overcapitalise!
End valuation was $400k, with $32400 spent on reno - with owners doing quite a bit of the work. (I assume this also covered furniture staging costs.) A huge $47600 profit on valuation ($48600 on pp). Now this would motivate anyone to do flipping ....but is that the real profit
I punched the numbers into my spreadsheet which factors in about 98% of costs and based on 28 day settlement, 16 weeks to flip from settlement to settlement, 100% borrow costs etc etc etc. There are variable such as solicitor and agents selling costs, rates/insurance etc but my net profit for this reno is around the $18k, a loooong way from $48k for those who look at things simplistically. If they had spent just $24k on reno the profit would not have been any greater, probably less as the roc coating over the fibro was not planned.
Now Cherie is no dummy, she knows these figures ... but that would not make as good advertising would it .... (and I do take my hat off to her for what she has done over the years and enjoy watching/reading about her various projects)
A couple of things I thought were a waste of time, that god awful "red privacy framework" that replaced the verandah railing - it has now been toned down. I know Cherie likes to add a highlight such as a red front door but that was horrible. She also changed the side the front door was hinged on to open aginst wall - good idea, but she added privacy slats inside the loungeroom to screen the lounge from anyone standing at the front door ...which is what the front door swung the other way did!!! I have seen Cherie use these slats in other renos and I think a great idea, but implemented it here without thinking .... in auto mode!
BTW, I did not see any asbestos specialists on the job
The bathroom, the laundry, pulling off the external joiner strips over the fibro before roc coating which would have pulled out small pieces of fibro with many of the nails. The guy taking off the splashback tiles above the laundry sink and making a big hole in the wall must have been thinking don't put this on TV - but lets give them the benefit of doubt that the copper pipes in the wall were not original (no gal seen) and the wall had been resheeted since 1986.I did some searching to see when the house was bought and if sold since. The property address is 40 Pank Pde Blacktown and shows it was sold on 11 December, and is now listed for rent @ $ 400pw. What happened to the flip??? Maybe they decided to hold and just suck out the equity. But it is now May, they have had holding costs for 4 months ....although they don't have selling costs so that saves them about $12k and 4 months is what I had allowed in calculations to settle on sale. I wonder what was happening in the meantime, can't find any previous sales adds for it since renovated.
If the owners are on this forum it would be good to hear the details and thoughts from their side (likely students of Cherie which is how she got onto flip)
Some links
before
after
