The Others

Your
Property

 

This is a snapshot of what we have viewed to date, but, in our eyes do not stack up. We still provide the numbers that matter, the renovation potential and all other relevant information. We are more than happy to discuss these in more detail if you wish.

13 Beaumont Ave,

Wyoming

 

3 - Bedroom

1 - Bathroom

1 - Car space

 

Size

Internal - 89m2

External - 481m2

 

Orientation

Front: West

Back: East 

 

Off-Market

High 400's early 500's

 

Price

Logical Price: $470,000 - $490,000

Emotional Price: $490,000 - $530,000

Flip Target Price: $470,000

Vendor Wants: $500k - $510k

 

Flip Financial Feasibility

Buy -$470,000

Renovate - $64,000

Sell - $630,000

Net Profit - $26k - $32k

Full feasibility here

Agent Link

Click here (This is the old sale link)

 

1/2
The Renovation Potential:
 
This property has the bones and potential to be great with some smart, stylish upgrades. Given we have a small internal footprint, we want to take the focus away from this as we don't have the time and money to extend. Focussing on creating an amazing street appeal with a new white picket fence, basic landscaping and rendering the brickwork will do this. Additionally, spraying the roof tiles will make this property feel brand new. Moving through to the back, the pool needs some love and we would put our attention here with decking around the outside of the pool and a new fence. We would also create a small deck off the back of the property to provide a really useful and functional outdoor area - again, taking the focus off the inside footprint. Internally we would work through the basic aesthetic improvements to create an initial wow factor. The bathroom has been renovated but with not such great taste - however, we can save our penny's here. The kitchen needs to be knocked out and a new one installed - extending into the current bar area. 
 
We have provided the renovation ballparks and desired works in our feasibility. 
 
Our Thoughts:
 
Simply, we liked this property, but we can't make the numbers work as the vendor's price expectations are unrealistic. We have been in discussions with the agent at the $470k mark, however, the vendor is chasing $530k. The agent is fishing around the $500k mark. Given the work required and renovated sales comps, we believe there's too much risk involved to proceed. To go in at the $500k purchase price, we'd need to be comfortable that we could net $660k on the resale. Given the current comps, we are not confident to proceed.
 
There are two properties across the road that have just been renovated. Both very modern and rendered externally. This is a good sign for the area and street. 20 Beaumont Ave is currently on the market (5 doors up) and chasing $630,000. It is a freshly renovated 4-bedroom home, however, it is very small and hence the discounted price for a 4-bedroom home in Wyoming.
 

1 Lincoln Close,

Bateau Bay

 

5 - Bedroom

2 - Bathroom

2 - Car space

 

Size

Internal - 163m2

External - 652m2

Orientation

Front: East

Back: West 

 

Private Treaty

Offers above $599k

 

Price

Logical Price: $630,000 - $650,000

Emotional Price: $640,000 - $660,000

Flip Target Price: $610,000

Vendor Wants: $640k - $650k

 

Flip Financial Feasibility

Buy -$610,000

Renovate - $72,000

Sell - $790,000

Net Profit - $27k - $32k

Full feasibility here

Agent Link

Click here (This is the old sale link)

 

1/2
The Renovation Potential:
 
This property's success is also its achilles heel. By this we mean, 5 bedrooms is amazing in terms of resale value, however, it demands more capital to get it up to that level. Again, the street appeal is big here given it's guarded by large trees to the front and side. The property is old and simply dated, but, structurally we believe it is sound. As it's a 5 bedroom home, it needs a much-needed backyard revival including new grass, new deck, pergola, and landscaping throughout. The actual property itself could well and truly do with a render and roof tile spray. Even painting the brick to reduce costs will be well worth it. Internally, the vendor has recently splashed $15k on painting, new doors, and handles. However, much more is required and the big-ticket item is the kitchen. For a 5-bedroom house this needs to be the hub of the home, currently, the kitchen is fit for a 2 bedroom apartment in Sydney. The current laminate flooring needs to be removed and floating vinyl floorboards laid. Existing carpet needs to be replaced and the bathrooms need to be resprayed. Additionally, lighting and window furnishings need to be updated. 
 
Our Thoughts:
 
This property offers enormous potential, however, better suited to a medium-long term investment criteria. Bateau Bay is a strong growth suburb and really spiking. The obvious draw card to this property is it's 5-bedrooms and priced at the low-mid $600's. We are seeing renovated highly specced 5-bed homes selling at the low-mid $800's, however, these come with pools and renovated to a high spec. Renovated 4 bedroom homes are selling in the low $700's. So we have put an end value of $790k for our feasibilities. But unfortunately given the work we're recommending, there is no surplus come sale time. We have discussed the lower purchase point with the agent and he has interest at the $640k mark. We have also looked at methods to reduce the renovation spend, however, we don't believe we can achieve the desired resale value without these updates. Reluctantly, we prefer to sit this one out.

38 MacGregor St,

Wyoming

 

3 - Bedroom

1 - Bathroom

1 - Car space

 

Size

Internal - 130m2

External - 544m2

 

Orientation

Front: North

Back: South

 

Private Treaty

$585k - $610k

 

Price

Logical Price: $550,000 - $580,000

Emotional Price: $580,000 - $600,000

Flip Target Price: $560,000

 

Vendor Wanted: $600k +

 

Flip Financial Feasibility

N/A - Property condition was better than expected and we would be over-capitalising on this property

 

Agent Link

Click here (This is the old sale link)

 

The Renovation Potential:
 
We really liked the location of this property and the potential available. The key to this renovation is to open up the front entrance to provide a really nice first impression. Secondly, we would like to open up the kitchen and rear dining room - this combined with a deck extension off the back that can be accessed by either bi-folds or french doors. The remaining budget would be spent on aesthetic improvements throughout. Additionally, the lock up garage is at the rear of the property and underneath the house. This is accessed by the side driveway. Half of the backyard is taken up by the concrete turning circle. It would be nice to remove this and build a car port on the driveway and then re-establish the current garage as a second living area/man cave. It could even be considered a bedroom, however, it wouldn't be the most desirable bedroom so there's a concern on the resale. All in all, it's a nice property, but priced as partially renovated so there's not enough in it.
 
Our Thoughts:
 
There wasn't enough in this property for either the purchase or sale point. The location and vista help push the price point up towards the $600k mark - it also presents very well. It is priced at a partially renovated point. If we looked at pure cosmetic to the existing there would be no room on the sale nor would we make the money back if we structurally looked to add a deck, knock out internal walls and install a new kitchen. Nice house, but not right for your strategy.

38 MacGregor St,

Wyoming

 

4 - Bedroom

1 - Bathroom

1 - Car space

 

Size

Internal - TBC

External - 746m2

 

Orientation

Front: South

Back: North

 

Private Treaty

$520k - $560k

 

Price

Logical Price: $550,000 - $580,000

Emotional Price: $580,000 - $600,000

Flip Target Price: $560,000

 

Flip Financial Feasibility

Buy -$610,000

Renovate - $72,000

Sell - $790,000

Net Profit - $27k - $32k

 

Agent Link

Click here

 

1/2
The Renovation Potential:
 
We really liked the location of this property and the potential available. The key to this renovation is to open up the front entrance to provide a really nice first impression. Secondly, we would like to open up the kitchen and rear dining room - this combined with a deck extension off the back that can be accessed by either bi-folds or french doors. The remaining budget would be spent on aesthetic improvements throughout. Additionally, the lock up garage is at the rear of the property and underneath the house. This is accessed by the side driveway. Half of the backyard is taken up by the concrete turning circle. It would be nice to remove this and build a car port on the driveway and then re-establish the current garage as a second living area/man cave. It could even be considered a bedroom, however, it wouldn't be the most desirable bedroom so there's a concern on the resale. All in all, it's a nice property, but priced as partially renovated so there's not enough in it.
 
Our Thoughts:
 
There wasn't enough in this property for either the purchase or sale point. The location and vista help push the price point up towards the $600k mark - it also presents very well. It is priced at a partially renovated point. If we looked at pure cosmetic to the existing there would be no room on the sale nor would we make the money back if we structurally looked to add a deck, knock out internal walls and install a new kitchen. Nice house, but not right for your strategy.

8 Marbarry Ave,

Kariong

 

4 - Bedroom

2 - Bathroom

1 - Car space

 

Size

Internal - 195m2

External - 500m2

 

Orientation

Front: East

Back: West

 

Private Treaty

$640k - $700k

 

Price

Logical Price: $

Emotional Price: $

Flip Target Price: $650,000

 

Flip Financial Feasibility

Buy -$650,000

Renovate - $100,000

Sell - $860,000

Net Profit - $18k - $25k

 

Full feasibility here

 

Agent Link

Click here

 

1/26
The Renovation Potential:
 
This property has great bones, built by a German and in very good condition. There are the obvious signs of general wear and tear (more so the exterior), however, it is solid as a rock. We really like the floorplan of this property which allows us to gain a few quick wins. Downstairs we would like to treat as a parents retreat area by turning the current bathroom into an ensuite and introducing a WIR. The current laundry is massive, so by taking the bathroom downstairs for the ensuite, we would then add a vanity, shower, and toilet to the current laundry. This means that kids playing in the yard don't have to trek upstairs to use the toilet. Finally, we would open up the entrance, hallway and current bedroom into a larger open sitting/2nd living room. 
 
The floors downstairs are a nice sandstone tile, so in the name of conserving money, we would keep this as is. We would carpet the master bedroom, however.
 
Upstairs, is about creating a family living zone for all to enjoy. The current dining room would be converted to a bedroom with the kitchen and living room combined to create a large living space. We would carpet all bedrooms (currently all have floorboards). The existing floating floorboards are in good condition, we would aim to preserve these throughout to save on costs. Upstairs we would create a larger window on the north side of the lounge room to let more light in. Finally, we would really like to extend the front balcony out as far as possible and use this as the outdoor entertaining zone. The views from this balcony are beautiful and it would tie in really nicely with the new kitchen, dining and living zone. 
 
It goes without saying that we will paint internally throughout, update window furnishings, light fixtures, and door handles. We would look to resurface the bathrooms throughout and update the fixtures and fittings to keep our costs down. Externally, we would paint the current render but add minor timber feature cladding to modernize the property. At this stage, we have only made an allowance for basic landscaping to the rear. However, if we believe that there is room in the buffer, we would look to either remove the current shed altogether or simply clean it up.
 
Our Thoughts:
 
We believe we can be buying in at the lower end of the range and it is our belief that we will be paying well under what the true market value is. 25 Marbarry Ave recently sold in May for $720k. This is a 4bed, 3bath, 2car on 651m2. It is un-renovated and does not have the same views as the subject property. That's the first issue resolved. Secondly, the renovation potential is great and there's ample opportunity to add value (as narrated above) without too much structural work. The property bones are great and it is in immaculate condition.
 
It's the post-renovation sale price where we don't have the same confidence. In saying that, the comps are available, to an extent, it's just a matter of how they are interpreted. In our full feasibility, we provided 5 x 4 bedroom house sales from the last 6 months that provide context to a resale value. The key consideration for us is the subject land size, it is smaller than all the comps. But on the other hand, we prefer the subject's location over most given it's on a Cul-de-sac, on the high side and has the nice vista views including some water views. The renovation allows us to add a second living area, an ensuite for the master and a 3rd bathroom. We are also adding a brand new kitchen which in our experience adds significant value.
 
We have based our re-sale at $860k. With a purchase price of $650k and renovation spend at $100k, the net profit lands at $18k - $25k. 
 
The decision to be made here is, is the proposed profit going to be enough for a 6-week renovation and a 4.5-month total project timeline. Given the resale price has some uncertainty around it, we would recommend not proceeding.

12 Maxwell Ave,

Gorokan

 

3 - Bedroom

1 - Bathroom

1 - Car space

 

Size

Internal - TBC

External - 505m2

 

Orientation

Front: East

Back: West

 

Private Treaty

Price Guide is $460,000

 

Price

Logical Price: $440,000 - $460,000

Emotional Price: $460,000 - $480,000

Flip Target Price: $450,000

 

Flip Financial Feasibility

Buy -$450,000

Renovate - $38,500

Sell - $580,000

Net Profit - $27k - $29k

 

Full feasibility here

 

Agent Link

Click here

 

1/23

* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.

The Renovation Potential:
 
This is a quintessential, 4-5 week cosmetic renovation. Whilst there are opportunities to structurally change, update and add to this property, the numbers simply don't stack up, so we want to stick with cosmetic upgrades only. Given the property presents really well as is, but just feels a little dated, we believe there are some simple wins on this one. Starting with the kitchen where we would simply update the existing with new doors, handles, bench-tops, sink and tapware and keep the existing appliances. Throughout the living and dining zones, we would simply lay vinyl flooring over the existing tiles and remove the current carpet in the living room. All bedrooms would be updated with new carpet too. Throughout we would update the window furnishings, lighting and door handles. Finally, we would paint throughout internally. Externally, we would simply recommend painting the exterior including downpipes and eaves. 
 
We toyed with bathroom resurfacing, however, in this case, it won't add the return. A really good construction clean and updating of fixtures and fittings would provide a more cost-effective benefit. Similarly, we like to paint the existing front and rear patio, but again, given the numbers are so tight, it is an item we can put a line through. Alternatively, if you wanted to and if you had time, it would be nice to deck over the top of the this to modernise the property. 
 
Our Thoughts:
 
Of all the options presented to date, this does feel the most conservative. However, the data and numbers quantify what we believe is a sound property to flip. We are comfortable with the renovated comparables and believe it simply comes down to buying at the right price. They are chasing $460k, however, $440k - $450k is the target buy at price for a flip strategy. 
 
We feel like there is no reason to not throw our hat in the ring on this one and attempt to pinch it for $450k max. Data suggests that the logical price on this one sits between $440k - $480k. It will be an aggressive buy price, however, to make this strategy work, we must buy well.