This deal was completed as a joint venture between several mentoring students working
together, which allowed them to take advantage of the opportunity this property
presented. Shane found the property listed online, and it caught his eye because it was
advertised as a ‘do up’ project with an overseas vendor 'serious about selling'.
The location was close to motorway access, handy to a variety of amenities in Manukau
City, and was on the border of a more affluent suburb. While the dwelling was bland and
uninspiring on the outside, the inside was a riot of clashing bright colours.
The house was typical 1970s low-cost construction with three bedrooms, one bathroom
and a single garage. It had a generous sized living area, a large elevated deck at the front,
and a decent sized section (600m2) that was quite untidy.
After inspecting the property, the joint venture group reviewed their findings and
calculations under the guidance of their mentor. Shane bid for it at the April 2019 auction
by telephone, winning the property at a purchase price of $550,000.
Settlement occurred in June 2019 and the group got their planned renovation underway.
Some repair work to the roof was required, a new deck was added in the rear yard, and a
fence was installed at the front of the property making the section pet and child-friendly.
Inside, an internal wall between the kitchen and living area was removed to create a
light-filled open plan living area, simultaneously removing an old fireplace. Renovation costs totalled $65,000.
All the work was finished within six weeks and the property was listed for sale. Two offers
were received in the first two days. The joint venture group were delighted with the final
sale price of $710,000, as this exceeded their expectations and was achieved very quickly.
Project profit, after GST was paid, was $49,434.