We’ve got a ripper of a Real Reno to share with you this week, thanks to our rapid renovation expert, Naomi Findlay. Naomi is a regular contributor to Reno Addict but it’s been a little while since we’ve shared any of her projects with you. Today we are sharing a whole house renovation that Naomi undertook in less than 2 months and for the grand total of just under $135,000.
Real Reno: Rapid renovation for profit on Adamstown family home
When Naomi first clocked this suburban, free standing family home in Adamstown, NSW, she knew it was ripe for renovation. In its original form, the property was suffering from an uninspired layout with a plethora of wasted space. “There was a poor floor plan with multiple pack entries, excess hallways which wasted space and no decent outdoor living space,” says Naomi. The kitchen and bathroom were also old, dank and uninspired.
Being a rapid renovation specialist, Naomi had a few tricks up her sleeves to improve the layout and functionality of the house and turn it into a home that would be perfect for a growing family.
First up was the conversion of the downstairs, under house storage into a large rumpus room/family space, followed by the creation of a third bedroom (which had previously been a room outside, unconnected to the main house) and an upgrade to the kitchen to increase size and open up enough space for a dining area.
While the renovation process ran smoothly for the most part (and was completed in under 2 months), there were a couple of hiccups, namely huge storms the week before going to market which caused substantial roof damage. Thankfully it was able to be fixed quickly and it Naomi turned the dalliance with disaster into a lesson in the importance of renovating a property to withstand all weather conditions, even the severe ones!
The property was purchased for $455,000 and sold for $625,000 after an eight-week reno, netting Naomi a tidy profit of $35,200. The total cost of just under $135,000 included renovations, buying and selling fees including stamp duty, agent fees, holding costs and all other associated costs.
Her advice to would be rapid renovators for profit? “Planning and prep is essential.” Always do your homework and organise yourself accordingly.
For more Real Renos, check out our Real Reno archives
Comments
The place looks great! Well done!!
I query the “profit” amount though. If she bought it for $455,000, she has had to pay about $16,000 in stamp duty (plus legals, plus any interest on a mortgage plus plus plus). She may also be liable for CGT. These outgoings would significantly reduce the $35,200 profit.
Thanks Bec! I can assure you that profit is perfectly correct! When renovating for profit it all about the ability to bring in a renovation that is on time and on budget! Your tax responsibilities are obviously heavily dependent on your business structure that you renovate under. When you have the right formula and the right team and the right tools this is very achievable!
Well if you’ve got a way to avoid stamp duty – please share! 🙂
I would love to see the figures you used as well please do share
Love your enthusiasm Bec and Richard but I think Naomi has answered the questions well and we have to be careful and responsible about not giving financial advice online. Obviously there is no way around paying stamp duty! As Naomi has already said, all the relevant costs have been taken into account and that is the true profit amount. Best, Jen
hi Naomi
I am just trying to do the maths here to understand more of your strategy, which is not about financial advice.
Sold Price = 625,000
Purchas Price = 455,000
Reno Cost = 133,000 (let say is 133K since you mentioned just under $135,000)
Stamp Duty = 16,237 (according to stamp duty calculator website)
Profit = Sold Price – Purchase Price – Reno Cost – Stamp Duty = $20,763
Have I misunderstood anything?
I agree with this completely. Maybe from here in a note could follow indicating that legals, holding costs etc have been included or excluded in the “profit” amount.
The post has been edited to clarify that the costs do include stamp duty and holding costs etc. This should answer your question.
Thanks! Yes, it does answer the question.
Can I ask what is the actual Reno Cost here excluding all the non-reno costs here? The place looks really nice and wonder how much will it cost to get this “look”.
Thank you!
What are the panels behind the bath on the wall and how do you clean behind the bath have left a gap for this? Thanks The hugs mirror in the kitchen well its gives the feeling of space and more light, it would be a bugger to keep clean and with small kids hitting it with some thing, and any movement in the wall would it not maybe crack? Just a thought or is it to bits hard to see in the pic
Hey Richard great questions.
The panels I think you are referring to are tiles 🙂 and absolutely it is always important to leave a cleaning gap is enough, it is hard to see in this image but yes it totally is!
The mirror – yes it is amazing huh! It is a toughed mirror so there are no issues with kids nor with heat in the kitchen!
There are draw backs to all things shiny like mirrors,glass and gloss finishes in a kitchen such as cleaning! But at the same time matt finishes have their draw backs too! Not for everyone but certainly met the needs of the target market which produced a lovely profit 🙂
Thanks for your comments and questions they were great!
Hi Naomi, love this Reno! can you give me a rough idea of the dimensions of the bathroom (for comparison with mine) and also can you please share where the bath is from?
Thanks Libby! The bathroom was approximately 1.8 x 3m 🙂
The bath was actually a Bunnings one!
I am totally stealing this bathroom. Love the mix of styles and the colours.
Thanks Erin!! So glad it has inspired you!!!!! Make sure you send your before and after pics into Jen so you can share them with the Reno Addict community.