1. Buy Right – The 70% Rule
Purchase price + reno costs + 10% buffer ≤ 70% of After-Repair Value (ARV). Example: Sydney duplex sold for $1.8M → ARV $2.6M → Max spend $1.82M total. Use CoreLogic or Domain for ARV; negotiate 5–10% below market on “ugly” houses.
2. Target High-ROI Suburbs
Focus on middle-ring Brisbane (e.g., Chermside), west-side Melbourne (Footscray), or inner-west Adelaide (Thebarton). These areas yield 15–25% uplift vs. 5–8% in blue-chip zones. Check council overlays: character protection = low profit; GRZ zones = gold.
3. Profit Levers (Pick 3 Max)
| Reno Item | Cost | Value Add | ROI |
|---|---|---|---|
| Kitchen (IKEA + stone) | $25k | +$60k | 140% |
| Bathroom (floor-to-ceiling tiles) | $18k | +$40k | 122% |
| Paint + floors (hybrid timber) | $12k | +$35k | 190% |
| Avoid: Pools, extensions (>20m² needs DA = delays). |
4. Cashflow Hacks
- Owner-builder licence → Save 20% GST on labour (ATO ruling).
- Interest-only loan during reno → Pay $800/mth vs. $2k P&I.
- Trade accounts at Bunnings Pro → 30–60 day terms + 5% off.
5. Exit Strategies
- Flip → Sell within 6 mths (CGT 50% discount lost, but fast cash).
- Refinance & hold → Pull equity tax-free; rent at 5% yield.
- Subdivide → Turn 800m² block into duplex (e.g., $1.2M → $1.8M post-DA).
6. Real Deal Example
Brisbane 1960s brick, 3-bed, 607m²
- Bought: $720k (off-market)
- Reno: $95k (kitchen, bath, paint, carport)
- Sold: $1.05M (90 days)
- Profit: $185k after costs (25% ROI in 5 months).
Pro Tip: Film the reno for TikTok/YouTube → $5k–$10k in brand deals per flip.
Start small, systemise, and scale. The first $100k profit is the hardest – the next is just rinse and repeat. 🛠️💰
