Parrish and wife Alyce embarked on a smart renovation that produced them an enviable $105k profit in just a month. Here’s how they did it
Our first property came about as my Nana was diagnosed with dementia and had to go into a nursing home. My mum owned the house and she couldn’t afford to keep the property, so I bought it off her.Since my Nana was not very well, she had taken it upon herself to introduce the walls to a hammer and let her dogs live inside, so we were forced to renovate the property. After seeing the amazing transformation, we have not looked back.
My wife Alyce and I have been investing for four years now. We are currently selling our first property and aubuying our third, which settle on the same day. Once all that goes through, we will have two properties, one with a granny flat being built. We are also looking to purchase another property in the next month.
Choosing the right properties to renovate
We look for properties that have ‘good bones’, and bathrooms and kitchens that are in original condition but have been looked after.
If properties are in up-to-date condition, we don’t usually go for them as there is no need to strip them and renovate.
How we decide what renos to do
Our goal is to modernise the entire house and get the wow factor throughout the property while keeping to a strict budget.
The only trades we hire are a plumber and an electrician, so the works we do are non-structural and within our capabilities.
We always renovate and have a substantial budget for the kitchen and bathrooms, as we find these are the key rooms that help people decide if they will rent or buy a particular property.
The end goal of our renovations is to present a neutral and appealing modern house that we would feel comfortable calling home. This way we seem to attract good tenants who look after the properties.
How we keep to our reno budget
Since we have completed three renos, we have a really good idea of how much each room will cost. It really comes down to whether the purchase price and reno costs will give a good return.When we are choosing properties, our aim is to renovate the entire property.
We make sure there is potential for an outdoor living area as most Australians enjoy being outdoors and having the option to entertain outside. Why? We do this so it feels like an inviting and cared-for house that people want to live in and are able to enjoy.
Lessons learned and what we’d do differently
Our last reno was during the summer, and in the last three weeks of renovations it was pouring with rain every weekend. This made building the deck very challenging! It also meant that I was not able to get the roof resprayed to a modern colour before renting it out. We will do this before we decide to sell. We learned that renovating in the summer can be tricky due to unpredictable weather.
If we had a bigger budget
If we’d had a bigger budget for our Gateshead property, I would have hired a local handyman to complete some of the works during the week, to speed up the process.
I would also have rebuilt the old single garage into a double, as well adding a fence around the block and some more landscaping. In saying this, having a bigger budget isn’t necessary if it is not reflected in the return on the property.
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