How to make money in a hot Sydney property market!
A client came to me wanting to buy a 2 bedroom apartment in the Eastern suburbs. He had a budget of $850,000! His brief was a modern kitchen, parking and close to transport. So, I started looking more on the outskirts of the east – around Kensington and Kingsford. At this stage apartments like what he wanted were selling from between $950,000 – $1,000,00. I had my work cut out for me!
Part of what sets us apart from other buyers agents is our ability to think outside the square and come up with creative solutions. Many people will ask me “where is the next hot spot to buy” in which I will reply “there are opportunities everywhere” . I look at picking the eye teeth out of the market. Which basically means that I am scouring the market for all kinds of opportunities. I look for 1 bedroom’s that you can turn into 2, bad paint jobs, over priced properties, properties sold by lazy agents and the list goes on.
The subject property was listed in an auction campaign and I had actually seen it for another client. My other client was really only looking for a 1 bedroom so it was too much for her. However my client looking for a 2 bedroom really got it when I spoke to him about my vision. The property is 82sqm and it mirrors the external floor plans of all the units above and below. The kitchen & bathroom were dated and there was a beige on beige aesthetic feel about it.
The next part of the process was working on securing the property pre-auction as this was a really hectic market. After doing all of my due diligence I started speaking to the agent. I always ask an agent how they deal with multiple buyers? I then find out whether or not the agent discloses offers. It’s a powerful question and it determines my next move.
In this instance I had set off a pre-auction buying scenario and I had competition.
We had to come in on a contract with a 66W and cheque. To be able to do this you need to have a contract reviewed by a solicitor who supplies you with the 66W. The cheque can be a personal cheque and all other due diligence needs to be completed such as a strata search and price research. I ended up buying the property for $767,000 – which was $200 over the other buyer.
The next part of the process was to make the property a 2 bedroom, modern kitchen and bathroom with new floors. Getting the approval through strata proved to be a very painful process but we had a structural engineer through prior and the designer that I used was excellent at this part of the process. The property was finished and my client got his 2 bedroom, modern apartment in the Eastern Suburbs for $850,000. Recently one sold 3 floors up with the exact same floor plan for $1,195,000. Boom money made!