$1.4 Million Gain From Renovated Home

Meadowbank house sells for $2 million - Property - NZ Herald NewsDid this property deal take knowledge, skill and experience or was it luck?

An Auckland Builder purchased a home in 2008 for under $600K renovated and sold it recently for $2M.

PropertyTutors Limited mentor Sean Wood agrees it’s a good market for impressive gains from property.

While the Auckland builder and his wife renovated a home to high quality over time and achieved an outstanding capital gain – this result is not guaranteed. See article here.

As home owners or aspiring property investors we need to analyse why this deal was exceptional.

The property owner in question was a builder – so he had a good handle on what was required to achieve a quality renovation and the associated costs so he could afford it and when it came time to sell the property – it wasn’t overcapitalised (i.e. the costs of the property purchase and renovation exceed the property value).

Secondly, the property owner held onto the property for five years he didn’t ‘flick it’ (sell it) too quickly. Holding onto the property allowed the Auckland property market time to mature into the hot market it is today.

Therefore timing the sale of the property was a major factor in the result.

The oversimplification of how deals are done like the one mentioned in here can trap naive buyers/budding property investors.

So was it luck?

A lot of knowledge, skill and experience is required to achieve a good property deal like the one mentioned here.  Liken it to an ‘overnight success’ we all know an overnight success is years in the making.

Another good saying is ‘we create our own luck’ – via the hard work we put into learning and understanding the conditions required to secure great property deals.

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