I sat with a seller who had completed fixing up an old house near Gawler Belt. When they bought the place, the house was ugly. Rotten floorboards. The garden was a jungle. Most buyers walked in and turned around. They saw money. But these sellers saw the bones. that houses in this area has good bones. Under the ugly, there was a gem. They took the risk cheaply. And they got to work.
Flipping houses is hard. It is not like on TV. There is mess. It is late nights. Money runs out. But when done right, it is a proven method to make money in the market. You create value. You don't hope. You make it happen. This example is proof the potential in the gawler real estate market.
I helped them through the process. I didn't paint, with strategy. "Save on that," I suggested. "Spend money here," was my tip. Spending wisely is the secret to a good return. If you over-capitalize erodes profit. 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 pulls the price up. 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. It required effort. Massive effort. Roof leaks. It was deep. They did due diligence. The bones were good. So they proceeded.
Most buyers are lazy. They want finished. 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.
Where The Money Was Spent
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 on the kitchen and bathroom. Kitchens and bathrooms sell houses. They put in a new IKEA kitchen looking modern. It seemed luxe but was cheap. They re-tiled the bathroom using modern grey tiles. Restored the wood. Hidden away was timber. Polishing them made it pop.
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 jungle garden was cleared. Mulch and plants fixed the curb appeal. Street appeal is vital. It creates interest.
The interior, it felt new. Light colours are safe. Avoid crazy walls to sell. You want to appeal the masses. White walls allows buyers to add their style. The polished floors looked rich. It looked like a new home with character bones.
I checked progress regularly. I kept them focused. "Don't forget the light fittings," was my advice. Old lights date a house. 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 were interested too it was tax depreciation ready. Owner occupiers were the goal.
The ad said: "Nothing To Do But Move In." That sells. The launch weekend was busy. 45 groups. Everyone looked out of curiosity. But genuine buyers were there too. They loved the finish.
Offers flooded in after the weekend. Comments were great. "The floors are great." No one mentioned the old house. They just saw the new home. Renovation works.
The Final Auction Result
We closed the deal in the mid $600s. Look at the profit. Cost: $420k. Reno: $60k. Expenses: $25k. Break even: $500k. Result: $635k. Clear profit: Over $130,000. For a short project. Huge income. It was worth it.
Risks exist. Buying high for the wreck destroys the margin. Over-capitalizing eats the profit. But if you buy right and renovate smart, you make money. In Gawler, you can do this. Find the diamond.
If you are looking for a project, tell me. I list the wrecks. I can tell you if the numbers stack up. Ask the expert. I like flipping. Let's make you money. Contact me.
recommended page guide