Hamptons Case Study
At McGrath Design and Construct, we can assist you with supporting you on your property purchase with the insider information and the knowledge on how much a renovation will cost. Our client had decided to buy an investment property. He had done some research on the location and decided on the property to purchase. Our client contacted us to accompany him on the property inspection. Before the property inspection, we spoke in detail with the investor who at the time was living in Sydney. We discussed purchasing budget and renovation budget, intentions for the property and timeframe allowed for a renovation.
Once we had all this information, we researched the area, current sale prices and recent properties sold to gain an understanding of the cost of completing the renovation to not overcapitalize in the area.
Unit details
Out dated Kitchen that was not functional
No dining space or breakfast bar
Two bedrooms. The master room had a large opening with curtains to give privacy from the living room however this did not feel like a room
One bathroom with a two way access. No door for the toilet. Shower flooring was mouldy and not able to be cleaned
A large laundry which was too big for the size of the unit
Before
after
Myself (designer), Brendan (builder), the client and real estate agent met at the property. The property was listed for $550,000 we knew the client had a budget of $40,000.00 to complete any renovation work. We quickly worked out a design plan and a new layout for the property. After the property inspection, we decided that yes, we could transform this property to the clients budget and not overcapitalize. The client made an offer on the property subjected to body corporate approving our changes. I then contacted the agent with a detail list of the . intended renovation scope of work.
The agent then took the plans to body corporate for approval. In this pre-planning stage, we contacted a structural engineer to gain consent for a wall to be removed to open the area up. Body corporate, the structural engineer and planning were all approved and completed prior to the contract going unconditional. Now that the property went unconditional, we went into planning mode and contacted our cabinet maker to start the process of a new kitchen and vanity. On settlement day, the agent handed the unit keys to McGrathD&C.
We then started work straight away. We completed all the renovation work, liaised with all the tradies, project managed and completed the job within two months (would have been sooner however COVID -19 held up some trades). Our client was kept up to date with the progress of work and the budget. The rest was up to our team at McGrathD&C. Once the projected was complete the keys were then handed back to the agent who then rented the property out.
Listing price $550,000
Purchased for $515,000
Saved = $35,000
Renovation Cost = $40,000
Rental property pre renovation $20,800pa
Rental Property post renovation $25,480pa
Rental increase = $4680.00
House Flip Investment Benefit
Purchase price $515,000.00
Real estate valuation post renovation $580,000
Investment return in 2 months = $25,000
“In February 2020 I saw an apartment in Cotton Tree that interested me and requested Rachel and Brendan join me to evaluate whether I could extract value from this perfectly positioned ugly flat with too many rooms and unfriendly layout. Rachel was equally impressed with the aspect however with her skills and experience she went to the drawing board and came up with a design and budget to maximise the space to turn this ‘Ugly Duckling” into a stunning beachside apartment. Brendan a builder, carpenter by trade with considerable experience and a calm, methodical disposition to get the job done. A Structural Engineers report confirmed Brendan’s view that the wall between the old Kitchen and Laundry could be safely removed with no compromise to the building and so with Rachel’s design in hand set about revamping and re-inventing this abode. COVID19 didn’t help the progress as it introduced some unexpected delays but as of today the May 2020 I am the proud owner of a very beautiful beachside apartment that with the professional services of “McGrath Design and Building” came in on budget (in fact a little under) and looks absolutely fabulous. Thank you Rachel and Brendan you have been a pleasure to engage and work with.”
If you are looking for help with your next renovation our build, contact us today!
