{"id":13905,"date":"2017-09-13T01:00:12","date_gmt":"2017-09-12T15:00:12","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=13905"},"modified":"2017-09-13T01:00:12","modified_gmt":"2017-09-12T15:00:12","slug":"cherie-barbers-failsafe-formulae","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/","title":{"rendered":"Cherie Barbers failsafe formulae"},"content":{"rendered":"

Kayne has found a renovation property in regional Victoria.\u00a0 He bought it well, as you will hear, but wants to make sure he does not overcapitalize.\u00a0 Cherie Barber<\/strong> gives us the formulae.
\nTranscript :<\/strong>
\nKevin:<\/strong>\u00a0 I want to answer a question now that came in specifically for Cherie Barber, and Cherie joins me.
\nHi, Cherie.
\nCherie:<\/strong>\u00a0 Hi, Kevin.
\nKevin:<\/strong>\u00a0 It\u2019s great to be talking to you again, Cherie.
\nCherie:<\/strong>\u00a0 Thank you.
\nKevin:<\/strong>\u00a0 Cherie, this comes from Kane. He says, \u201cI\u2019ve found a good property in regional Victoria that I want to renovate and sell for a profit. What steps can I take to ensure that I don\u2019t over-capitalize? Could you ask Cherie for me? I paid $250,000, and well-renovated properties in the town are selling for between $325,000 and $390,000.\u201d
\nSo, what would your tips be to Kane, Cherie?
\nCherie:<\/strong>\u00a0 Okay. Well, first of all, it\u2019s good that he\u2019s done his research. I say before you buy any property, make sure that you know what the value of the un-renovated house is worth. But at the same time, if you\u2019re going to be flipping, where you\u2019re going to be selling at the end, he needs to know what the resale property values are.
\nSo, if he\u2019s bought a house for $250,000, he needs to be reselling around the $340,000 mark to cover his renovation and all of his project costs, like his holding cost, resale costs, and so forth. So that\u2019s great. It seems to me that he\u2019s actually already in that range, which is really good.
\nThe next thing is to make sure that he spends an appropriate amount of money for the actual renovations. On a $250,000 house, the general rule of thumb for a cosmetic renovation is that you spend 10% of the property value. So, that means his renovation budget is $25,000 \u2013 not a cent more \u2013 and that\u2019s to completely transform that house, inside and out.
\nNow, I guess some of the ways, in terms of not over-capitalizing \u2013 obviously that\u2019s a very tight budget \u2013 he might go through the house and make a list of everything that needs to be done, and he might cost that up at $40,000. So, then he needs to say to himself, \u201cOkay, I don\u2019t have enough money to actually do everything. What are the things that are going to add value?\u201d So, certainly things like painting, ripping up the carpets, polishing floorboards, cosmetically updating the kitchens and bathrooms.
\nI guess if I can give him one big piece of advice, I always say to my students around the country, before you start any renovation, ask yourself what can truly stay in the house and what has to go. Because obviously, everything that you keep is going cost you less money to put back in.
\nSo, things like your kitchens and bathrooms can be cosmetically refreshed through products like laminate paint, tile paint, bench-top resurfacing kits. You can buy all of these products for under $100 a tin. And this where you spend hundreds of dollars, not thousands of dollars.
\nKevin:<\/strong>\u00a0 It seems to me, that as well as doing the research on the property, you also have to research all of the materials that you will be using in the renovation, because as you\u2019ve just highlighted, you can actually very easily over-spend just on those, Cherie?
\nCherie:<\/strong>\u00a0 Oh, 100%. And there are certain things\u2026 For example, I always say to my students, when you\u2019re selecting your fixtures and fittings, really shop around. Go out and be an absolute scrooge, getting the best price on your fixtures and fittings, because $50 you save here, $100 there, it all adds up to thousands and thousands of dollars over the course of the whole renovation.
\nAnd it\u2019s also the type of fixtures and fittings. \u00a0I generally say, shiny fixtures and fittings add more value than matt or satin type fixtures and fittings. I\u2019ll try and give you a practical example. In the bathrooms, even when I\u2019m doing my low-budget TV renovations, I\u2019ll always put polished tiles on the bathroom walls because they look more expensive than matt tiles.
\nEven things like larger tiles look more expensive than smaller tiles. They still cost you the same amount of money, on a square meter basis, but one has a perception of value, one doesn\u2019t. There\u2019s lot of little tricks in renovating.
\nKevin:<\/strong>\u00a0 Yes, there certainly are. The other point that I wanted to raise too, and you raised it right at the start there when you were talking about Kane\u2019s budget. It would be so easy for him to have a budget of, say, $50,000 on that reno, and then say, \u201cWell, I paid $250,000, there\u2019s $50,000 on top of that; that\u2019s $300,000. If I can sell it for $350,000, I\u2019m still going to make a profit,\u201d but as you\u2019ve just pointed out, that\u2019s only just a portion of your costs.
\nCherie:<\/strong>\u00a0 It is. This is where a lot of people go wrong. They think just about the actual renovation and they don\u2019t consider their project costs. There\u2019s stamp duty, there\u2019s holding cost, legal fees. There are sometimes building and pest inspection fees, sometimes council fees, agents fees to resell the property. They\u2019re called resale costs. And you should always have a contingency, and all of those costs, add up to be more than the actual renovation itself.
\nI call them the total cost of a project, and that\u2019s what most people forget about and they get to the end of their project and they think they\u2019re going to sell for X amount and they don\u2019t. And this is where a lot of people lose money renovating or they break even.
\nKevin:<\/strong>\u00a0 Tremendous talking to you, Cherie. Thank you very much. If you want to contact Cherie, or go to one of her workshops, you\u2019ll get all the information at her website, RenovatingForProfit.com.au. One of our experts, Cherie Barber.
\nCherie, thanks for your time.
\nCherie:<\/strong>\u00a0 You\u2019re welcome. Thank you, Kevin.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Kayne has found a renovation property in regional Victoria.\u00a0 He bought it well, as you will hear, but wants to make sure he does not overcapitalize.\u00a0 Cherie Barber gives us the formulae. Transcript : Kevin:\u00a0 I want to answer a question now that came in…<\/p>\n","protected":false},"author":176692471,"featured_media":14634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,34,10,11,13,36,21,25],"tags":[101],"class_list":["post-13905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-renovation-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nCherie Barbers failsafe formulae - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cherie Barbers failsafe formulae - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Kayne has found a renovation property in regional Victoria.\u00a0 He bought it well, as you will hear, but wants to make sure he does not overcapitalize.\u00a0 Cherie Barber gives us the formulae. Transcript : Kevin:\u00a0 I want to answer a question now that came in...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-12T15:00:12+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Cherie Barbers failsafe formulae\",\"datePublished\":\"2017-09-12T15:00:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/\"},\"wordCount\":1019,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Buying a property\",\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Renovation\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/\",\"name\":\"Cherie Barbers failsafe formulae - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-09-12T15:00:12+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/cherie-barbers-failsafe-formulae\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Cherie Barbers failsafe formulae\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Cherie Barbers failsafe formulae - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/","og_locale":"en_US","og_type":"article","og_title":"Cherie Barbers failsafe formulae - Realty Talk","og_description":"Kayne has found a renovation property in regional Victoria.\u00a0 He bought it well, as you will hear, but wants to make sure he does not overcapitalize.\u00a0 Cherie Barber gives us the formulae. Transcript : Kevin:\u00a0 I want to answer a question now that came in...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/","og_site_name":"Realty Talk","article_published_time":"2017-09-12T15:00:12+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Cherie Barbers failsafe formulae","datePublished":"2017-09-12T15:00:12+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/"},"wordCount":1019,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Buying a property","Finance","Kevin Turner","Kevin's Update","Latest Stories","Property Investment","Renovation","Sponsored Channels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/","name":"Cherie Barbers failsafe formulae - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#primaryimage"},"thumbnailUrl":"","datePublished":"2017-09-12T15:00:12+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/cherie-barbers-failsafe-formulae\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Cherie Barbers failsafe formulae"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/13905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=13905"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/13905\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=13905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=13905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=13905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}