Project: 2 bedroom apartment flip project in Elsternwick, Victoria.
Purpose: To cut our teeth on our 1st flip with the aim of making a small profit
Scope of work:
The apartment was completely renovated. We went back to bare concrete. Only 1 plaster wall was removed and the separate toilet was turned into a laundry. All fixtures and fittings were removed. Everything in the property was replaced/new.
The biggest challenge with this project:
THE BUDGET – This was tough! As much as we tried to follow your guidelines of 7%, but we realised from early on that this was not going to be possible of the style of renovation we wanted to present.
TRADES – We quickly realised that trades take up a big portion of the budget. We had employed some fantastic trades for the project, but then some of them we would never use again. Will try to get a builder/carpenter who can give us a fixed price for all the work NEXT TIME ?
PLANNING – In order to be ready, we found out that you need to be a few steps ahead. We did some very rushed and chaotic decisions at times because we had not thought far enough ahead.
FLOOR PLAN – Changing the floor plan to make it more appealing to today’s style of living without taking out the brick walls was very challenging. For this to happen, we removed 1 plaster wall and closed 1 entry point and got creative to make the apartment have an open plan feel. I feel we did it successfully.
RENDERED BRICK WALLS – Oh the joy! It’s worth buying a property with solid brick walls for they are a step above what you get in a new build today. You have to be prepared for the additional work and cost associated with this project.
Best renovation budget finds:
Our French Backpacker joiner who we found on gumtree at $25 per hour plus breakfast, lunch, and snacks! He was a master craftsman and our favourite trade. Marble tiles – $250
How long did the renovation take?
- Purchased – March 2017.
- Settled – 20 April.
- Reno started – May.
- Finished- end September.
- Sold – 29 October.
- Settlement – 12 December
The biggest lesson as a student of The School of Renovating:
The budget – This is a constant work in progress. If we want to deliver beautiful, unique, quality renovations, how can we do this on a 7% budget? We are still working this challenge out.
Value adding – How far do you take a reno sometimes? For example: If we put a less expensive tile on the feature wall in the bathroom, would it have given us the same outcome?
Renovation Cost Breakdown
| Purchase Price | Buying Cost | Holding Cost | Renovation Cost | SOLD | PROFIT | Profit (Net) |
| $485,000 | $48,708 | $ 1,368 | $51,000 | $642,000 | YES | approx $50,000 |
Liana, Katya and Tayissas’ advice for all budding renovators:
Do it!! It will be scary but do you can it. You can start small – maybe do a 2 bedroom apartment AND be sure to put the paint lid on properly before you put the tin in the boot of your car ?
