Real-life Blockheads make millions renovating property in Queensland

MEET the Queensland renovators who’ve made so much money off projects they’ve quit their jobs, and the man helping others to realise their dream.

RENOVATION stress on television is nothing compared to the pain and losses in real-life makeovers if you’re not ready for the challenge, say full-time renovators who’ve made millions off their own blocks.

James and Paula Lilley – a Queensland couple rejected by The Block several years ago – have become millionaires renovating 25 properties, while fellow renovator Harry Nina built a successful business helping others avoid money-guzzling pitfalls that he learnt about the hard way.

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The Lilleys have seen all of their 25 completed renovations come up roses. Double-digit margins have allowed them to quit their jobs to become full-time renovators.

Their first project 12 years ago had a 25 per cent margin, which created equity for their next project which had a margin “slightly in excess of 30 per cent” – and so it began.

“If you buy well it’s an economically viable way to make a living,” Mr Lilley said.

All 25 projects had the same contractors including P&R Lee Builders and Space Property’s Judi O’Dea – something they found worked well for them.

Mr Lilley said they also stuck to the greater Paddington area, having paid dearly the time they followed their hearts to the Graceville riverside where they were flooded out and had to renovate twice.

He said the investment formulas behind decisions should not change in any market.

“Number one is research; do lots,” he said. “Then have a sound understanding of the scope of your renovation and stick rigidly to it … remember love costs money, so don’t get too emotionally connected.

“And you have to painstakingly administer the process.”

Harry Nina, who runs a successful business helping people to renovate. Pic Jono Searle

Mr Nina, who has renovated up to a dozen properties for himself in the past 20 years, now helps clients assess and complete theirs via his three-year-old business Project Complete. Renovations, he said, easily lost their way without extensive research, a firm hold on costs and knowledge of the real estate market.

He warned there were many ways naive renovators can lose money , such as an Auchenflower project that he renovated during a market upswing – he ended up making the same $50,000 profit on a six-month renovation as he could have done simply by renting out the house and holding the property for the same period and then selling it as it was.

“We made money but we lost time renovating and time is money.”

Mr Nina suggested first-time renovators avoid major structural work that buyers may not see and appreciate and instead focus on adding “bang for their buck” via painting, grass, better layout, new kitchen, new deck or new bathrooms.

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NOW SELLERS HOME IN ON THE MARKET

SELLER confidence has returned to Brisbane’s inner-city property market.

New figures from LJ Hooker reveal a 40 per cent jump in appraisals in September compared with the same time last year.

LJ Hooker state manager Paul Moore said listings were tight and buyer competition was strong, making it an ideal time for sellers.

“Homeowners are starting to understand conditions are at the optimum level for selling and they want to know how they can capitalise on this fact in the marketplace,” he said.

“(They) have been wanting guidance on what their property could fetch in the marketplace, where they could improve the property to optimise buyer interest, and what features buyers in the inner Brisbane marketplace are interested in.”

Harcourts Queensland chief executive Jim Midgley said his offices had also experienced increased seller confidence, with listings increasing significantly this year.

“September has gone above and beyond previous years,” he said. “We’ve seen an increase in listings and are expecting a flow-on of transactions coming into Christmas.”

Mr Midgley said listings statewide were up 8 per cent on September last year.

Most of the market growth had been driven by the southeast corner and Brisbane was no longer a buyer’s market.

“Buyers had a good trot while (the market) was low, but now there are more people looking to buy and that’s balanced the market,” he said.