POP1 – Property opportunity #1

Quick Flip – Cosmetic reno

Target market

This property has particular appeal for younger professionals who are looking to move up from apartment living and have not been substantially or financially impacted by the Covid-19 outbreak. Business professionals with plans to start or add to their small family they have no time or interest in a fixer-upper. They are moving from a modern apartment and want to feel like they are getting a new home. This property will also appeal to couples with an “empty nest” looking to down size and maybe using any excess capital from the sale of their larger family home to invest in another income earner as for their retirement. Without a cosmetic reno/update, this property lacks any appeal for the target market and a low price becomes its only selling point.

Investment overview

Well suited for: *

  • Renovate and Flip
  • Renovate and Hold
  • Rent and Renovate

Renovate and Flip

Located where the market has a clear divide in the value between the “Good” and the “Bad” of $200k to $250k. Marketed at the lower end of the market, this property is poorly presented and is struggling to find a buyer after an extended period. With a small renovation budget (around $50k) this property has the potential to lift in value by $200k with and average on market period of only 30 days and plenty of upside.

Renovate and Hold

In an extremely well maintained neighborhood there is high demand for rentals from people who are house proud. Renovating for rental will attract a higher level of positive cash flow while potentially allowing for a significant increase in lending valuation to allow investments in further property opportunities.

Rent and Renovate

With a minimal amount of work for a Handyman, this property could be put on the rental market “as is” and be an excellent little earner providing around 3.2% rental income on investment. Perfect for a young couple looking to start a family, this property could be rented for 6 to 12 months (or more) and then be renovate to dramatically increase the properties value and offer the new home feeling to the owners when they are ready to move in.

* Based on RP Data. Full report available on request.


Presentation

This is what it should look like but it doesn’t

Neat features

  • BP Solar power system – grid sell back available
  • Attic storage with folding stairs
  • Fully ducted reverse cycle air-conditioning throughout
  • Ceiling insulation bats
  • Master bedroom WIR
  • Full height tiling in Bathroom

Adding extra WOW

  • Plantation blinds on first floor
  • Strip lighting over kitchen benches
  • Remote mood strip lighting in living area

Work to be done

  • Repaint fa├žade
  • Repaint gables
  • Render and paint brick letter box post
  • Replace front lawn
  • Ceilings need repainting
  • Rear door to laundry needs replacing
  • 2nd floor doors need repainting
  • A couple of architraves and door frames need filler and repaint
  • Rear sliding door needs replacing
  • Repair/replace laundry floor tiling
  • Kitchen cupboard need repairing or replacing
  • New kitchen sink hardware
  • Repair chipped kitchen and living room tiles
  • New vanity and cabinet in WC
  • New light fitting in WC
  • Replace Ensuite shower screen with frameless glass
  • Re-grout Ensuite shower
  • Fill/seal cracks in Ensuite architraves and repaint
  • New cabinetry in main bathroom
  • Replace toilet in main bathroom
  • New frameless glass shower screen
  • New shower hardware
  • New curtains, rod and pelmet in Master bedroom
  • New curtains, rod and pelmet in 2nd bedroom
  • Replace Venetian blinds in 3rd Bedroom
  • Recarpet stairs and 2nd floor
  • Refurbish solar power system
  • Repair rear brush fencing