Lismore Council were selling off homes along the Richmond River, which often flooded, as they planned to construct a new flood levy in 2006. I put in a bid $8484 on a quaint little cottage which was in a terrible state of disrepair. It looked a real mess, but had good bones and some great character features that would look great with lots of work to fix them. Well, I won the house with my bid and I paid for it by credit card, as we were a bit short of funds at the time. We bought a flipper house by credit card!!!
We were waiting for the payment of land (that we had just finished subdividing) to come through, as we had sold some of the blocks. It was a beautiful piece of unused rural land that we had approved into a 20 lot country subdivision in Clunes. It was a great opportunity which we undertook as a joint venture with a local real estate agent. The outlays are huge in such developments, there is risk involved too, but it can give you great returns. Costs often blow out with road construction, council contributions, weather delays and unforeseen obstacles. We had sold a number of lots and made a small profit. To increase our profit we decided to value add to 2 of the blocks we had kept for ourselves, by bringing in relocatable homes to renovate.
So getting this little house from the council was perfect for our plans! We then arranged for the house to be relocated by Redhouse House Removals to the block in that subdivision, and started planning the renovation. Renovating on a budget needs careful design and decor decisions – the aim is creating designer looks for less money. When renovating for profit, every dollar you spend is a dollar less profit if you spend it incorrectly.
On further inspection of the house my husband found hydroponic drug equipment in the roof. We disposed of it of course and cleaned out all the junk left inside. It had obviously had a shady past life. Built in the late 1800’s many people had lived there, but more recently it had been a rental home. The house was painted a terrible dark khaki colour and looked derelict.
On moving the house to our subdivision, the neighbours were shocked at the condition and quickly complained to council, worried it would degrade the area. Council knew of our work and assured them as we did, that we would create a beautiful home out of this dump. Council showed them previous work we had done in the area. They felt assured and we got to work!
The block we owned was sloping, so we decided to increase the size of the home with an underneath extension. The block of land had lovely views, so we added large verandahs to take advantage of these.
I don’t have any digital images to show you, but here is the house after renovation. A family bought it and love it still. They have enclosed the front verandah to create an extra room for their 5 children.
We recycled a kitchen adding a retro influence.
So “What was the profit?” I hear you ask. Here are the figures:
Land component $70,000 + approx $9,000 for the house + $28,000 house transportation costs + $220,000 to re stump and renovate it. The house was sold/flipped for $520,000
Total profit (not including a few thousand in solicitors fees and Real Estate agents fees) = $193,000
We just love Creating Beautiful Homes On A Budget
by Belinda Westblade
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