Living Property

[Case Study] Justin's Cosmetic Renovation

How we added $76,500 capital growth to a client’s portfolio in just six months—without overextending financially to make it happen

01.

THE SITUATION

Finding a sound but neglected residential property and turning it into a wealth-building asset.

A client named Justin appointed Living Property to help him achieve his long-term wealth accumulation goals through property. After extensive strategizing to help determine Justin's best next move, it was determined that manufacturing capital growth through a small cosmetic renovation project in the right location was the right step for him.

With our access to inventory across all of Australia, he knew we could get the job done when it came to hunting down and securing the right property. Specifically, a residential property in a family-oriented area—and without risk of overextending financially.

Once that was done, it was time for the renovation.

02.

OUR APPROACH

Finding low-competition, high-growth potential property that fit our client’s unique circumstances.

The three-week renovation on the $608,500 property we secured (value at the time of purchase) worked out to be an additional $38,000.

This included a full gutting inside (carpet, paint, bathroom, kitchen, cupboards, etc.) and professional landscaping to uplevel curb appeal. A major part of our property acquisition strategy in this instance was to go for a houses that was dated internally such that it was not desired by the 'typical' owner-occupier buyer. This enabled us to purchase a house that had a great structure, but required work nobody else had the time or team to tackle.

Moments like these are where Living Property’s vast network grants a powerful edge. Since 2014, we’ve nurtured connections that give us access even to pre- and off-market properties, all across Australia.

And because of that, our results are second to none.

In Justin’s case:

THE RESULTS

$76,500 worth of added capital growth and extra bragging rights from getting the highest return rate in the suburb!

PURCHASE PRICE

$608,500

CASH REQUIRED

$68,900

GROSS

YIELD

4.7%

VACANCY RATE

0.3%

CURRENT VALUATION

685,000

CAPITAL GROWTH

$76,500

Success! By delegating the property search, purchase, and renovation to Living Property, Justin added around $76,500 in equity to his portfolio.

Prior to kicking off the renovation, the property was valued at $608,500 (December 2021). After commencing the project, the value jumped upward to $685,000 (May 2022). On the cash flow side, having a newly renovated property in a family-oriented area achieved higher rent. Some quick maths works out to be $560 per week (up from $390), which is also $120 more than any other property in the same suburb.

E.g. As a whole, this meant we effectively created $2 dollars in equity for every $1 spent. Not a bad outcome for a 30 day project!

Beyond the numbers themselves, this increased cash flow and equity made going again much easier. Justin was able to utilise this growth and, as of July 2022, will be purchasing again—his third acquisition in six months.

On the market for your own dream home or investment property?

We can help you leapfrog past all of the usual pitfalls of investment property purchases. Our extensive network puts access to inventory all across Australia at your fingertips. This means not being stuck at the mercy of where an agent’s personal interests lay!

We tailor every search to our client’s unique needs and stop at nothing to make sure you’ll get the greatest return on your investment possible.


To learn more or get assistance, click on the button below to start with a free consultation.

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