Living Property

[Case Study] Oliver's Cosmetic Renovation

Living Property’s Founder Eats His Own Dogfood With His Money On The Line!

01.

THE OPPORTUNITY

Using renovations to turn an undervalued property’s amazing structure and location into a cash-generating gem.

Not being one to just “talk the talk”, Living Property’s own Oliver Jackson set out to further his portfolio and manufacture equity through this cosmetic renovation project.


At the time, the property market was in a bit of a slump. However, buying and/or fixing up the right property in such times can be a great way to “manufacture growth.”


In order to have the added edge of buying in an amazing area, Oliver challenged himself to find a property that others couldn’t be bothered with, and thus, sat undervalued.

02.

OUR APPROACH

Renovate a neglected property in Oliver’s desired area, live there first, and then sell to upgrade.

Initially, the first property we sought to buy was beyond budget.


Location is a well-known major price factor no matter where in the world someone is buying. And with sights set on buying in a high-demand area, finding and closing the right deal required being strategic.


To stay within budget, the focus eventually turned to finding a property to live in, renovate, and sell to move up to a bigger and better house.


Getting to that point, we first established a criteria of not competing with owner-occupied market(s). This would increase the odds of buying a property below its true value because no one would have the time, team, or desire to bother.


Through Living Property’s vast network—including pre-market and off-market properties—we zeroed in on a perfect opportunity. Located on the best street in a prized location, sat a forgotten property full of potential.


However, getting there meant more than a lick of paint!


With a reno budget of $82k, the house was completely gutted over a six-week timeframe. Top to bottom—flooring, the kitchen, bathroom, a massive deck, and more—everything was overhauled.


To improve the home’s layout, two load bearing walls were also taken out.


(And yes, don’t forget all the new paint!)

03.

THE RESULTS

Capital growth from $394,000 to $1 million, plus nearly double the monthly rental cash flow.

As a result of the renovation (and overall appreciation), the six-week renovation resulted in positive capital growth.


The initial value of the property (purchased December 2014) was $394,000. Within six months (June 2015), that figure swelled to $650,000. And today, it is now worth over $1 million.


Rents went from $320 per week before renovation to $620 per week post-renovation. In fact, the numbers were so good, Oliver decided to keep the property after 12 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.


Plus, working with us unlocks inventory all across Australia. This means not being stuck at the mercy of an agent’s personal interests.


We comb through our entire network and stop at nothing to make sure you’ll get the greatest return on your investment possible.


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