Is it still possible to make money out of property investment in this market?

 

How much would you pay for this ex-state in Auckland’s Remuera? We bet your answer is way off the actual sale price, but it will come as no surprise for the many property investors who, despite the so-called "cool” economy are still making thousands in the property market, even outside Auckland. 

Believe it or not, the house, at 39 Spencer St, Remuera, recently sold for $1.3 million. (Photo: New Zealand Herald)  

 

 

 

Juliet Blair sold this house in Orakei, Auckland, for $846,000, a profit of $256,000 on what she paid for it a year earlier. 
 

 

 

 

 

   

The property developer who renovated this house in Titirangi, Auckland, did even better, boosting the price by nearly $300,000 in just seven weeks!

These dramatic hikes in value are not only being achieved in Auckland. With house prices still on the rise across much of New Zealand, enterprising Kiwis with a flair for renovating and decorating are making excellent capital gains.

 

   

 

What’s their secret?

As one observer noted, “They didn't make money in property because they sold it for a lot, but because they bought well.” The developer of the Titirangi house above bought it at below valuation because it had been left derelict for several years – all the electrical wiring had even been ripped out and a car body had to be pulled out of the bush! The place required an extreme makeover, inside and out, and although the developer wouldn’t say how much it cost him, he made it clear he still make a spectacular profit.

What was his secret to being able to “flip” the house so profitably in just seven weeks? By using professional renovators, according to the Property Investor Centre.

“Many renovators ‘trip themselves up’ by undertaking the renovation work themselves,” they say. “In my experience most people that do the renovations themselves, do this in an attempt to ‘save’ money. Whereas in reality it ends up costing them far more, due to the far longer period of time that it takes them to complete the work, and the associated ‘holding costs’ of the project over that extended renovation period.”

If you need professional help with your renovation, whether a property investment or your own home, contact your local Fix It Renovations professional. 

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