As an Australian property investor, finding, renovating, and ensuring profits on fixer-upper houses can be a lucrative venture. However, it is a minefield of hidden costs.
So, Jennifer L started this website/business to create educational material and ideas on finding your own ‘renovator’s delight’. In time, it will also support local trades, connecting renovators to the professionals to ‘get it done’.
Jennifer is a book editor and money & marketing book author with a few ‘hobbies’. Since 2008, she has been fascinated by Do-it-yourself financial planning and household savings.
It seems that 99% of companies in real estate education are planning for mighty profits for themselves. While working in a real estate education firm, Jen found out they charged $12,000 to clients to ‘help’ them to buy a ‘positive cash-flow’ duplex/triplex being built on the outskirts, whilst also pocketing Developer commission. Some value was in the finance section that kept the interest rates low, but still, it doesn’t take a genius to invest in a new development in outer north or south Brisbane. It is not going to skyrocket, either!
On the other hand, you do need initial help if investing in ‘renovator’s delights’.
With a knack for seeing what’s possible, Jennifer seeks to bring both design ideas and profit calculations – so you can get a holistic view.
Finding and Renting Out Fixer Upper Houses
When starting out, whether home buyer or property investor, your strategy is to find location-worthy fixer upper houses. Remember, no point in gutting and renovating a house that’s in the boondocks, where nobody wants to rent.
Every renter wants access to local jobs or a commutable distance to the city, a nice maintained house or flat, and a reasonable level of rent (compared to median wages). Access to public transport and good schools are good features too.
Real estate agents say that the city market is showing strong interest below $1 million for the renovator market. (Feb 2024).
Rentals have been going up in the past 12 months:
- Greater Brisbane has seen growth in units of 18% in median weekly rent, to $535 per week. (Jan 2024)
- Greater Melbourne growth in weekly rent of units of 16%.
- Greater Sydney growth in weekly rent of units of 18%
Renovating Fixer Upper Houses
While most renovate-to-sell peeps will go onto RealEstate.com.au or Domain and willy-nilly, pick out something they can afford that looks good value for the suburb median. They may even buy sight un-seen. Have they not watched the renovation shows? Termites, hidden water leaks, old electrical, poor foundations and rotting floorboards can all lie in wait for the interstate buyer.
This site will focus on giving prudent numbers, money-saving tips, and realistic renovation budgets so that at the end of the renovation, it’s a strong investment — not a money pit.
It’s centred around:
PLAN + BUDGET
PRIORITISE
CONTRACT (+ DIY fiddly painting if desired)
COMMUNICATE
In other words:
- Create a detailed renovation plan and budget. This will help you stay organized and ensure that you don’t overspend.
- Prioritise renovations that add the most value, such as kitchen and bathroom upgrades, flooring, and curb appeal enhancements.
- Consider hiring professional contractors for complex renovations to ensure high-quality workmanship.
- Regularly communicate with your contractors to stay updated on the progress and address any issues promptly.
Remember, investing in fixer upper houses can be a rewarding endeavour, but it also carries risks. It’s crucial to conduct thorough due diligence, like building and pest inspections, and seek professional advice when needed. Also stay informed about the latest trends and regulations in the real estate market.
By following these tips and strategies, you can increase your chances of finding, renovating, and ensuring profits on your fixer upper houses. Good luck with your property investment journey!