Cinderella by the Sea
When Mel first viewed this three storey, 145 square meter townhouse, she knew this was the one she had been looking for. All this investment property required was a little TLC. It had been rented privately to a family member and had basically been neglected.
The astute investor can see the difference between a property that requires TLC and TNT. Think with your head and not with your heart; fall in love with the deal not with the house.
The vacancy factors were low, it is situated in close proximity to shops and schools and as an extra bonus it is only 200 meters to a magnificent beach! The asking price was offers above $350k.
Yeah, I can hear the moans from here “why didn’t I get this opportunity?”
It’s a good question, as the property was listed on realestate.com.au for all to see.
Following quick negotiations the property was off the market for a price of $363k. Building and pest inspections were organised together with the bank valuation. We met both the building inspector and bank valuer on site for an interview.
The valuer flatly refused, said the banks didn’t like it. I wonder why?
Now, I haven’t completed a valuation degree but I knew what the value would come in as, do you?
Building inspection gave it the all clear; the contract was now unconditional, except for one special clause allowing access to the property for improvements i.e. renovations.
One day before settlement and the job’s done! Lots of painting, tidying up the court yard –including planting, a new side fence and gate. The toilets and laundry tubs were replaced and new tiling completed to the existing shower. Including the addition of new venetian blinds, all up a total of $11k was spent.
A new appraisal equated to a whopping $66k equity gain in three weeks. Now that’s what a Reno King cosmetic makeover is all about!
This is my daughter and son in-law’s first investment property. They located and negotiated it, they were the brain, I was the brawn.
Check out the before and after photos below to get a feel for Cinderella by the Sea!
There are plenty of Cinderella’s out there, not all by the sea of course, but they could be yours if you just start looking!
P.S Following 19 days of cosmetic renovations, I was worn out walking up and down two flights of stairs. What do you do when you’re worn out? You go fishing, still fishing, still fishing!