I sat with a seller who had just finished a massive renovation project in Gawler South. When they started, it was a wreck. Peeling paint. Weeds were everywhere. People inspected it and walked straight out. They saw stress. This couple saw potential. that local real estate is solid. They knew that under the dirt, was value. So they bought it at a low entry point. They started renovating.
Renovating is not easy. Unlike The Block. It is dust. Long weekends. It is budget blowouts. With a plan, it is the best way to build wealth in real estate. You make profit. You don't wait for the market. You create the growth. This story shows you the potential right here in town.
I advised them through the process. I didn't paint, but with advice. "Save on that," I suggested. "Spend money here," was my tip. Spending wisely is the secret to making money. If you over-capitalize means you lose. It is vital to know what buyers want in this suburb. I provide that insight.
The Ugly Duckling On The Street
It was dated. It was smelly. The kitchen was orange. The bathroom had pink tiles. It was the eyesore in the neighbourhood. That is the golden rule: purchase the dump in the best location. The street appeal is already there. You can fix a house; you can't move land.
They bought it for low $400s. Finished properties next door were selling for $650,000+. The gap was there. But it needed work. Massive effort. Roof leaks. More than paint. They did due diligence. The bones were good. So they proceeded.
Most buyers are lazy. They want to move in. They pay extra for a done house. If you can to renovate, you get that money. The market pays you for the inconvenience. That is the game. Fix and flip.
Crunching The Numbers Before Starting
The limit was sixty thousand. It is tight for a whole house. They had to DIY. They ripped out carpets themselves. That saved $5,000. They painted by hand. Labour is dear. Sweat equity is huge savings.
They invested in the wet areas. Kitchens and bathrooms sell houses. They put in a new IKEA kitchen looking modern. It seemed luxe but was cheap. Fixed the shower using modern grey tiles. Restored the wood. Hidden away was timber. Polishing them transformed the house.
No structural changes. Extensions are expensive. Used existing layout. This is smart flipping. Visual changes return the most. Painting a brick wall modernizes it cheaply. Adding a room takes too long. Stick to cosmetics.
The Transformation Process Begins
During the reno, they were there daily. Neighbours watched the trade utes. The transformation was visible. The old front was painted grey. The mess was cleared. Mulch and plants made it welcoming. Street appeal is vital. It creates interest.
Inside, it felt new. White paint are safe. Don't use bold colours to sell. You want to appeal the masses. White walls allows buyers to add their style. The polished floors gave character. It looked like a new home with character bones.
I checked progress every few weeks. I kept them focused. "Don't forget the light fittings," was my advice. Dark rooms don't sell. LEDs were installed. It sparkled. It was ready. Budget: On track. Speed: Fast.
Marketing A Freshly Renovated Home
We hit the market. We styled it. Empty houses echo. Furniture shows scale. For a small fee, but made the photos pop. Images were great. Landlords enquired because it needed no work. Owner occupiers were the goal.
The ad said: "Nothing To Do But Move In." That sells. The launch weekend was busy. A huge crowd. Locals inspected out of curiosity. Serious people were there too. They saw the quality.
Offers flooded in after the weekend. People loved it. "The floors are great." They forgot the past. They just saw the new home. This is the power of presentation.
The Final Auction Result
We closed the deal in the mid $600s. Check the numbers. Bought: $420,000. Spend: $58,000. Fees: $25,000. All in: $505,000. Sold: $635,000. Net gain: $130k+. In two months. Great wages. That is the reward.
Not every flip works. If you pay too much at the start kills the profit. If you spend too much hurts you. Purchasing well and control costs, profit follows. In Evanston, the opportunity is there. Look for the wreck.
If you want to flip, register with me. I find the dumps. I will let you know if there is profit. Get advice. I love these projects. Let's find your project. Get in touch.
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