Oliver and Sarah White's investment journey proves that you don't need to find the perfect property. All you need is sufficient preparation and the ability to see the potential.
Oliver and Sarah White's real estate investment journey started on the other side of the world.
They spent two and a half years in London, taking advantage of the many opportunities that city life entailed while building their finances in anticipation of the life they planned when they returned to Australia. .
“During our stay in London, we took advantage of the expatriate lifestyle to maximize travel opportunities across Europe… [but] we also made it our mission to build up our savings, so that when we returned to Australia we could enter the real estate market and start the next chapter in our lives, ”says Oliver.
Sarah and Oliver White
The journey begins
It was late 2017 when they returned to Sydney and spent the first half of the following year getting to know the real estate market.
"We both knew we wanted to live in the northern beaches and found a shared home in the area as a starting point," says Oliver.
The couple were first overwhelmed by the high prices of properties in the suburbs. However, the cooling of the real estate market in mid-2018 offered them the opportunity to buy a property.
"Fairlight was out of our price range when we returned from London," says Oliver. "But by the middle of the year, the market had relaxed and our desired suburbs started to become workable."
Oliver and Sarah went to many open houses before finding a two bedroom apartment with potential. The property was up for auction, with a guide between $ 850,000 and $ 900,000.
"It was obsolete, worn and riddled with stains and smells of cigarettes, but it was in a great location and had the skeleton of what we were looking for," says Oliver. "It also allowed us to renovate and take ownership of it."
After their first inspection, the couple made an initial offer of $ 850,000. However, the agent told them that the seller wanted to proceed with the auction.
It was a surprise when, two days later, the agent informed them that the seller had changed his mind and was ready to negotiate.
“[The agent] advised increasing our initial offer, which we did, and offered $ 860,000. The seller agreed and we moved in late July 2018, ”says Oliver.
Fairlight property for purchase
Adding value
The couple lived in the apartment for almost a year without making any changes while "debating the best renovations". It was in mid-2019 that they decided to create an open plan by cutting living and dining areas to the kitchen through a structural wall. They asked permission from the diaper committee and got their approval.
"We cut the opening, installed a new kitchen and laundry room, and painted and installed new flooring just in time for our wedding in early October," says Oliver.
The renovations lasted three months, from June to August, and cost approximately $ 50,000 to $ 60,000.
"Towards the end of the year, we completed an appraisal, which returned to $ 1.1 million," he said.
The couple created an open plan by cutting through a load-bearing wall
The couple's first successful renovation prompted them to do more.
"Our next decision was to decide whether to renovate the bathroom or [explore] the possibility of modernizing or enlarging the balcony. The apartment is on the ground floor and there was a front garden with a path leading to the balcony, "says Oliver.
The balcony of the property before renovation
Oliver and Sarah asked the other owners if they were open to the idea of ??extending the balcony, which will cover the garden. The planned 24 square meter bridge would not only provide them with additional living space, but would also improve the aesthetics of the building.
They asked the strata committee to approve a by-law authorizing the construction of the deck and granting them exclusive use of the area. The regulations were successfully adopted, allowing them to start construction of the bridge in early April.
"Luckily, we have such friendly and open-minded owners in the building," said Oliver.
After completion, they had the property appraised by a local real estate agent – the property was now worth between $ 1.3 and $ 1.35 million and could be rented between $ 850 and $ 900 per week.
"[W] We had increased the value of our apartment from $ 860,000 to between $ 1.3 and 1.35 million in 22 months, after investing about $ 90,000 in renovations," said Oliver. "We plan to continue our journey of real estate investment using the additional equity we have earned."
The new property bridge
Second property
While construction of the bridge was in progress, the couple decided to use the equity they had withdrawn from their previous renovation, which had been approved.
They found another two-bedroom apartment in Manly Vale, priced at $ 800,000. However, the economic impact of the COVID-19 pandemic has lowered the asking price to $ 750,000. They were able to negotiate it further up to $ 730,000 before finally buying the property.
"The property comes with new tenants on a 12-month contract paying $ 520 per week and starting only four weeks before our settlement date," said Oliver.
Currently, the couple does not intend to invest in another property. "We are not looking too far at this time," said Oliver.
When asked for advice from those who want to embark on a similar investment journey, he says, "Find a trusted broker who can help provide advice and guidance on finance. This also eliminates stress when accessing finance. »
