{"id":14202,"date":"2017-10-04T07:00:20","date_gmt":"2017-10-03T20:00:20","guid":{"rendered":"http:\/\/www.realestatetalk.com.au\/?p=14202"},"modified":"2017-10-04T07:00:20","modified_gmt":"2017-10-03T20:00:20","slug":"beach-shack-reno-turns-a-six-figure-profit","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/beach-shack-reno-turns-a-six-figure-profit\/","title":{"rendered":"Beach Shack Reno Turns a Six-Figure Profit"},"content":{"rendered":"

When country music singer Adam Brand found a little house on a tiny block of land in his home suburb of Palm Beach, he knew it was \u2018the one\u2019 \u2013 the property he could sink his teeth into to restore it to its former glory and turn a six-figure profit at the same time. Sarah Megginson reports.<\/strong>
\nIt was the little house on a small block that country music singer Adam Brand jokingly referred to as \u201cThe Shack\u201d.
\nThe tiny two-bedroom house was riddled with asbestos and in desperate need of some TLC when Adam found it \u2013 and it was exactly what he was looking for.
\nAs a touring artist, Adam is on the road a lot. But in between gigs he found himself with quite a bit of downtime and a strong desire to \ufb01nd a property project to work on.
\n\u201cMany years ago, I bought a couple of rental properties, did some very basic renovations where I ripped up carpets, repainted and cleaned up the yards,\u201d Adam explains.
\n\u201cI found that I loved the whole process of \ufb01nding something rundown that\u2019s dirty and neglected that everyone drives past and looks at the place and thinks they wouldn\u2019t go near it.
\nI enjoyed pouring love into it, and having people go \u2018Wow!\u2019 at the end result.\u201d
\nHe hadn\u2019t yet tackled a major renovation, but with a little time on his hands between tours, \u201cI just needed a good project to sink my teeth into,\u201d he says.
\nSo he bought a house to renovate in his hometown on the Gold Coast.
\n\u201cIt was located in Palm Beach, a beachside suburb, on a very small 408sqm block. It was really a tiny little shack with two bedrooms and one bathroom that was built in the
\n\u201950s,\u201d he says.
\n\u201cIt\u2019s on the other side of the highway, something that will make sense to people who know the area \u2013 so it\u2019s not on the real fancy side overlooking the beach. But the \ufb01rst dozen avenues in the suburb are basically five minutes\u2019 walk from the cafes in Fifth, Sixth, Seventh and Eighth [Avenues], and it\u2019s so close to the water you\u2019re literally a few minutes\u2019 walk away.\u201d
\nPounding the pavement in search of property<\/strong>
\nAdam approached his renovation project in a strategic manner by planning what he wanted to achieve well before he began browsing the classifieds.
\n\"\"
\nHe estimates he spent around nine months renovating, but he also invested months of time in the lead-up to ensuring that he bought the right property in the first place.
\n\u201cWhen buying a property for this type of project I knew it was important to buy in the right area and the right street,\u201d Adam says.
\n\u201cI identified four streets along that whole strip of Palm Beach that I liked the look of. There were nice trees in the street, not a lot of traffic, central to the cafes, that type of thing. I just drove those streets every day that I was home and it took me about three months to find the house.\u201d
\nWith a goal of finding the worst house in the best street, he felt like he\u2019d struck gold when he happened upon a derelict property on First Avenue \u2013 one of his desired streets \u2013 with a fresh \u2018For sale\u2019 sign on Sunday afternoon.
\n\"\"
\nHe immediately called the real estate agent, who was out playing golf and wasn\u2019t returning his calls.
\n\u201cThe sign wasn\u2019t there on Thursday when I left to go and do a few shows, and it was there on Sunday afternoon, so I knew it was a new listing. It \ufb01t the bill for what I wanted and I was really keen to make an offer right away, but the agent wasn\u2019t getting back to me. So I went and knocked on the door,\u201d Adam says.
\n\u201cI said, \u2018Your agent is not getting back to me and I want your house!\u2019 When you\u2019re really sure about where you want to buy and you keep an eye on the market, then you\u2019re ready to pounce when the right opportunity comes up. It made the buying process stress-free and very fast; I don\u2019t even know if they\u2019d signed the listing papers!\u201d
\nThe property was listed for $449,000, and Adam moved in with an unconditional\u00a0contract for $400,000.
\n\u201cI think being decisive probably helped in that negotiation, and when you go in saying \u2018Unconditional offer, here\u2019s a deposit\u2019, you take away all the uncertainty. It\u2019s a straightforward, safe contract.\u201d
\nNeedless to say, the vendor said yes \u2013 and Adam settled the purchase within a matter of weeks.
\nRolling up sleeves to renovate
\nAfter taking possession of the house, Adam realised the scale of the project in front of him, and he knew he couldn\u2019t do it alone.
\n\u201cI don\u2019t have the tech expertise and training to do it all myself, so I needed a builder certifier, plumber, electrician and other tradies, but I was the offsider to everyone,\u201d he says.
\n\u201cI had to pretty much gut it and start again. There was asbestos everywhere, so one of the first things I did was to get people in from a demo company to come and take it all out. They ripped everything up and just left some hardwood frames.\u201d
\nAnother immediate concern was removing a \u201chuge, big, ugly tree in the front\u201d, which had three main trunks that were wreaking havoc with the garden. Adam arranged for it to be removed on the day after the property settled.
\nThe following morning, the first of the tradies began arriving.
\n\u201cI quickly learnt that if you want to make a profit in renovating, you\u2019ve got to roll your sleeves up. From my experience, you have to get in there and get your hands dirty, because that\u2019s how you\u2019re going to save money,\u201d he says.<\/p>\n

\u201cI had to pretty much gut it and start again. There was asbestos everywhere\u201d<\/strong><\/em><\/h2>\n

 
\nCOST BREAKDOWN<\/strong>
\n\"\"
\n\"\"
\n\"\"
\n\u201cI had released an album at the same time, and I was touring, so it was a really busy time. I would go away on tour, land back at the airport, drive back to the house, take off my jeans and jacket and cowboy\u2019s boots \u2013 then on went the work boots and off I went to get to work on my property.\u201d
\nFor instance, when the plumber was putting new pipes in, Adam was there digging out the trenches and helping to lay them out.
\n\u201cI was digging; I was chopping; I was involved in every piece of it. I just wasn\u2019t making the technical decisions,\u201d he adds.
\n\u201cEvery trade that came in, I saved at least one person worth of rates every day, and not only that \u2013 I probably shaved off an hour or so in productivity. Tradies usually spend the first hour setting up and the last hour packing up, but I was the one cleaning up and having them ready the next day,\u201d he says.
\n\u201cIt was like a dental surgery: I\u2019d have all the offcuts in a neat pile, all the tools and equipment ready to go.\u201d
\n\"\"
\nTransforming two bedrooms to three.<\/strong>
\nAdam designed and created the new floor plan for the house, which transformed the tiny \u2018shack\u2019 into an attractive and modern three-bedroom home. Each bedroom had its own ensuite, adding two bathrooms to the overall layout.
\n\u201cAdmittedly, I went in with a different mindset and I was probably a little bit too emotional about some things, because I was planning to live there for a while,\u201d he says.
\n\u201cIt I were doing it purely for profit, I could have made a few different choices. I had three bedrooms and every room had to have their own ensuite and a toilet for guests, for instance.
\n\u201cThis probably wasn\u2019t necessary and we could have included one less bathroom. But we ended up with a beautiful, modern beach house with three bedrooms and three and a half bathrooms, and it achieved a fantastic profit in the end.\u201d
\nAdam moved through the renovation strategically, doing the internal upgrades before moving into the property, at which point he focused on the landscaping, carports and fencing. He then lived in it for six months before renting it out while he was on tour.
\nHe sold the property less than two and a half years after buying it, achieving a sale price of $705,000 \u2013 over $300k more than he paid for it, with a profit of $100,000 after renovation expenses.
\n\u201cThis was my first major project, and it was a real sense of satisfaction when it was finished. You stand back and look at it and think, there was nothing before, and now we\u2019ve got this incredible property.\u201d
\nNow that the project is behind him, Adam admits that the renovation bug has well and truly bitten and he can\u2019t wait to do it all over again.<\/p>\n

\u201cI quickly learnt that if you want to make a profit in renovating, you\u2019ve got to roll your sleeves up. From my experience, you have to get in there and get your hands dirty, because that\u2019s how you\u2019re going to save money\u201d<\/strong><\/em><\/h2>\n

\u201cI didn\u2019t realise how much I was going to love it. You hear people say, \u2018Don\u2019t renovate \u2013 there\u2019s so much stress and pressure\u2019. So I thought, I\u2019ll do this once and it\u2019ll sort me out and get it out of my system. But the opposite happened!\u201d he laughs.
\n\u201cI don\u2019t profess to be vastly experienced, but I know that when I see that sort of stuff it excites me. I love renovating and getting my hands dirty and I\u2019m looking now for my next one to get stuck into.\u201d
\nADAM BRAND\u2019S TOP 3 TIPS FOR A SUCCESSFUL RENOVATION
\n\"\"<\/strong>
\n1. \u00a0\u00a0 \u00a0Get your hands dirty<\/strong>
\n\u201cYou can save time for your tradies by cleaning up after them and having everything organised when they arrive in the morning so they\u2019re not billing you their hourly rate for these tasks. When you chip in like this, every minute they\u2019re on the job is spent actually on the job.\u201d
\n2. \u00a0\u00a0 \u00a0Skimp on big brands<\/strong>
\n\u201cYou don\u2019t have to go out and spend huge bucks on the top-end brands when renovating, unless it\u2019s a high-end property. You can buy an IKEA or Bunnings kitchen and if you get the combination and colours right, with a nice stone top, it\u2019ll look like a $15,000 kitchen and it\u2019ll cost you $5,000 or $6,000. It\u2019s really about shopping around and looking at all of those products to get the best fit.\u201d
\n3. \u00a0\u00a0 \u00a0Don\u2019t believe everything you hear<\/strong>
\n\u201cThere are a lot of things you hear along the way in property that other people say, and you sort of take it as gospel. One of those for me was about ants. Someone said to me, \u2018Don\u2019t worry \u2013 white ants won\u2019t eat hardwood frames; they only like soft wood\u2019. I was very surprised then to discover a big section of about 5m of our hardwood frames chewed out! I asked a few other people and they said that what I had been told was right \u2013 the ants will opt for soft wood if given the chance. But if there\u2019s none of that left, they’ll chew right through your hardwood anyway. There\u2019s a good lesson there \u2013 not just to listen to everyone\u2019s opinions and old wives\u2019 tales and opinions. Go and get the right ones instead!\u201d
\nFor more articles like this, visit\u00a0www.yourinvestmentpropertymag.com.au<\/a>
\nOriginally published as: http:\/\/www.yourinvestmentpropertymag.com.au\/property-renovation\/beach-shack-renovation-turns-sixfigure-profit-233859.aspx<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

When country music singer Adam Brand found a little house on a tiny block of land in his home suburb of Palm Beach, he knew it was \u2018the one\u2019 \u2013 the property he could sink his teeth into to restore it to its former glory…<\/p>\n","protected":false},"author":176692471,"featured_media":14203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,36,21,31],"tags":[70],"class_list":["post-14202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-property-investment-topic","category-renovation-topic","category-your-investment-property","tag-featured"],"yoast_head":"\nBeach Shack Reno Turns a Six-Figure Profit - 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\/beach-shack-reno-turns-a-six-figure-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beach Shack Reno Turns a Six-Figure Profit - 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