Regional towns are becoming a popular choice for many investors and owner occupiers alike, as the market in major cities becomes much more unobtainable. This means that more people are looking, and as such the land becomes more scarce, especially large blocks with potential for development.
Our strategy for Liam included creating instant equity from a renovation, this in itself posed a challenge. We needed to find the right home with good bones, but one that would benefit from an upgrade and achieve a good rental yield.
After shortlisting a number of properties, we found a classic 3 bed, 1 bath weatherboard home on a large, flat block. The property was listed for $258,000 and we were able to negotiate a price of $229,000 saving Liam $29,000. That saving well and truly paid for the renovations and stamp duty.
We knew that there was good potential to increase the value of the home, as similar homes in that area had a median sales price of $337,000.
Liam was able to complete most of the renovations himself along with the help of some friends and family, which helped to keep the costs down.
The vast majority of the work involved updating the kitchen including removing a non-load bearing wall to increase size and to give it a more modern, open plan feel.
Liam was lucky enough to have a neighbour who is a plasterer, so he was able to get help from someone he trusted, with good rates.
He acquired most of the supplies from Bunnings, including the Kaboodle kitchen which he found easy to install himself. He removed the bulky overhead cupboards to make the kitchen feel larger and added a full-length pantry for practical use.
Liam was lucky to find beautiful hardwood floors under the kitchen linoleum. He sanded these which added to the aesthetics of the property while maintaining some of its original charm. Liam also gutted and fully renovated the bathroom including beautiful floor to ceiling tiles and a stunning free standing deep bath.
To further update the property, Liam painted throughout and added new window furnishings.