RENOVATING FOR PROFIT HOUSE RENOVATION - WERRINGTON

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Neil Norton
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RENOVATING FOR PROFIT HOUSE RENOVATION - WERRINGTON This project is one with a difference. This ramshackle diamond is personally owned by our renovating for profit expert Cherie Barber.

1 RENOVATING FOR PROFIT HOUSE RENOVATION - WERRINGTON This project is one with a difference. This ramshackle diamond is personally owned by our renovating for profit expert Cherie Barber. She bought the property just recently which she intends to cosmetically and structurally refresh then rent out on completion. It s in a high capital growth area so Cherie knows she will benefit not only from the renovation but also longer term capital growth. Currently the house is very dated and attracting a quality tenant will be difficult. Cherie also identifies that the existing house layout is very disjointed with the house screaming out for structural alterations and additions. She also realizes there is an opportunity to convert the house from a 3-bedroom house to a 4 bedder to add more value. It s in a suburb though where structural renovations are less successful. Normally for a cosmetic renovation, Cherie would spend 10% of the property purchase price. But with at least $20,000 in structural changes, achieving this may prove a challenge even for our expert. Will she get a return on the time and money she invests or will she over-capitalise?.

2 Before Facade After Facade After photos

3 Before After

KEY JOBS Cherie s renovation strategy was to create a modern and fresh looking home by cosmetically and structurally renovating this property and trying to keep within the 10% cosmetic renovation

4 KEY JOBS Cherie s renovation strategy was to create a modern and fresh looking home by cosmetically and structurally renovating this property and trying to keep within the 10% cosmetic renovation cost of the property. The scope of works included: Cosmetically refresh the existing kitchen with new kitchen doors, end panels and benchtops. New kitchen appliances. Cosmetically refresh the existing bathroom and WC. th Change wall structure in lounge room and foyer area to allow for a new 4 bedroom. Install new floorboards throughout the house. Paint house internally throughout including all walls, ceilings, doors & trims. Paint house externally including the walls and roof spraying. Install new pergola to front of the house to create a sense of entry to the property. Install new window furnishings. Structurally install new bi-fold doors which open onto the deck from the dining area. Install new lighting & ceiling fans throughout the property. Install new mirrored robes in three of the bedrooms. Install wallpaper feature walls in strategic parts of the house. Paving paint the driveway and back deck. Install new landscaping (garden beds, turf & plants) in both back and front gardens.

FINANCIALS Property Value (Before Renovation): $550,000 Renovation Spend Total: $ 67,500 Renovation Timeframe: 3 weeks Property Breakeven Point: $617,500 Property Value (After Renovation) $690,000

5 FINANCIALS Property Value (Before Renovation): $550,000 Renovation Spend Total: $ 67,500 Renovation Timeframe: 3 weeks Property Breakeven Point: $617,500 Property Value (After Renovation) $690,000 Gross Profit Margin: $ 72,500 Net Profit Margin $ 44,408 (After Stamp Duty, Legals & Holding Costs) Note: No marketing costs, agents commission or capital gains tax payable as property is not being sold. Tenant secured immediately post completion at $ rent per week on a 1 year lease.

6 PAINT COLOUR SCHEMES TAUBMANS PAINT USED INTERIOR WALLS: MAIN BEDROOM WALLS: INTERNAL CEILINGS: INTERNAL TRIMS: EXTERNAL WALLS: ROOF COLOUR: Taubmans Easycoat in Penguin March in Low Sheen Taubmans Easycoat in Shindig in Low Sheen Taubmans Easycoat in White (Flat Finish) Taubmans White - standard off the shelf can (Water Based Gloss) Taubmans Endure Exterior Paint in Coalmine Taubmans Endure Exterior Paint in Coalmine For more information visit:

WEBLINKS For further information on the materials and products used for this renovation, take a look at the following websites: http://www.bunnings.

7 LABOUR & TRADES PEOPLE This renovation was conducted over 3 weeks by a team of approximately 11 people including: Cherie Barber, carpenters Paul, Mick and Luke, plumber Kane, Electrician Shane, 3 painters, labourer Matt and Katia the wallpaper installer. WEBLINKS For further information on the materials and products used for this renovation, take a look at the following websites: All general hardware items for this renovation purchased from Bunnings including timber, plasterboard, electrical downlights, paint and numerous other items.

PROPERTY STYLING Styling Spaces Melbourne Contact: Anna Phone: 1300 931 279 Website: www.stylingspaces.com.

8 PROPERTY STYLING Styling Spaces Melbourne Contact: Anna Phone: Website: Styling not normally required for the buy, renovate & rent strategy however property styled for TV filming purposes only. Normal retail value of the property styling if selling - approximately $6,000 for a 6- week rental period.

ABOUT CHERIE BARBER Cherie Barber is a widely respected Australian and international TV renovator, professional renovator, renovation educator, highly sought after public speaker and considered

9 ABOUT CHERIE BARBER Cherie Barber is a widely respected Australian and international TV renovator, professional renovator, renovation educator, highly sought after public speaker and considered Australia s leading renovation media contributor. In 2001, Cherie threw in her full-time marketing job at the end of her first renovation, which saw her earn more money renovating on the weekends rather than her full-time employment. In 2009, she established Renovating For Profit, a company that runs 3-day renovation boot camps which teach everyday people, how to do quick cosmetic renovations for a profit. She now juggles renovating with her national public speaking, business & media commitments and believes once you have the right knowledge, anyone can do it! Cherie Barber: Renovating For Profit Phone: (02)

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