Glam-amarama is back!
It’s live…. our renovation of the Art Deco apartment in Tamarama, Sydney Australia has just been aired on The Aussie Property Flippers (episode 3, season #1, Channel 7, Australia).
Here’s the background story….
As usual, we set ourselves a quick turnaround – complete renovation in 6 weeks, maybe 8 at a push.
Mitch and I have always focused our property renovations on places in the inner east of Sydney. The Sydney market is well known for being one of the most expensive world-wide, but who can blame people for wanting part of this amazing city and the amazing harbour. I wasn’t born in Sydney, but this city is home. What some think is a Sydney disregard for people, I found was a healthy space to be yourself, and relax in the sun and surf of this
So far Mitch and I have stuck to the locations we know, and now figure we should stretch out a bit and look at new locations.
So, we decided…. “Let’s hit the south coast!”
……so, we headed from Potts Point all the way down to …. Bondi and Tamarama……okay, I think we’ve become a bit too insular now!
When we found “Fletcher Street” in Tamarama we weren’t going down to look at that property, we had a range of other places on our ‘shopping list’…but not a 2 bed, 1 bath NO PARKING place!
It was by chance that we found this property, and it ended up making us a good profit, as you may have seen.
Just in case you’re asking, our profit was the money left after we accounted for EVERYTHING we spent to get the property to the market and sell it. It’s not equity, its cash.
So, yes, we included mortgage payments, stamp duty and strata payments, we paid for all the trades, the hardware, cabinets, plumbing, wiring, floorboards, sales costs etc. etc.
I have quickly become an expert in excel to record everything.
As ‘hands-off’ flippers we still make a wage, so our model works for us. We’re not part of the ‘get rich quick’ renovate for profit seminar circus. We get on with the business we enjoy, and focus on producing a quality product for the market, and everyone wins!
We found Fletcher Street by accident. We walked past the property as the open inspection was ending.
Mitch, who is always on the lookout for places, insisted we go in. I was worried about a property with no parking so near to the beach, and we really keep away from old properties. People get romantic visions of these places, and underneath the skin of the places are often ‘surprises’ waiting to be discovered.
But we headed in.
It was a walk-up, and the common areas looked dirty. This was kind of a bonus as they are easily fixed (if the strata fund is well funded) and lots of people find it off-putting….so a tick for flippers.
The property had tenants, and walking in the placed looked dirty and messy…another tick for flippers…but tenants… a cross for flippers.
We had 10 minutes to look through;
- Huge master bedroom……….tick
- Messy bathroom……….tick
- Very small second bedroom……….cross
- North facing……….tick
- Views of Tamarama Beach from the Master bedroom……….kind of a tick
- No real balcony……….cross.
- No parking……….cross
- Walking distance to Bondi and Tamarama……….tick, tick, tick
- On public transport route……….tick
- Auction coming up in a week okay, a problem, we must move fast
10 minutes and we decided, this property is on our list.
In the week following we needed to check the strata report, ensure the funds are sound, review the contract and be ready for auction. We found the fund was good, works were already planned and funded, and tenants were on a month-by-month agreement. It all looked like a good deal…. remember ‘the worst place in the best street (aka locations)’.
You might have seen in the episode, we went to auction, bidding on the cheapest property in the auction, and the bidding stalled!!! Who would have figures. Mitch’s bidding strategy was perfect, and tough negotiations were needed to seal the deal at a good price. We kept doing the maths in our minds as we were bidding … adding in stamp duty, renovations, mortgage costs, sales costs…ka-ching $$$, ka-ching$$$, ka-ching$$$….
We then went into planning and submission time. To ensure we can begin on the day we take ownership we needed to have our plans and applications submitted to the Strata Committee quickly.
We got them done, and in place…. but the bathroom became an issue for our start date.
We did start close to the date we took over the property, and demolition got underway quickly. The bathroom was at risk of being a money pit. However, investing in the right things up front can pay off at the sale.
Our research showed that apartments with 2 beds, 1 bath and no parking had sold in the area for over $1 million. We needed to keep costs down to still be able to achieve this….
The background of what we consider in our planning, budget and styling …… I’ll update tomorrow….