Sydney real estate: Renovators who make ‘flipping’ pay

SYDNEY’S “renovator’s delights” have become the hottest properties in the city as “flippers” look to make big bucks from old dumps.

26 John Street, Erskineville, sold for $770,000 in April 2013 ...

SYDNEY’S “renovator’s delights” have become the hottest properties in the city as “flippers” look to make big bucks from old dumps.

The combined value of home improvement projects across the city jumped 52 per cent in the past year, while renovation work in the eastern suburbs and north shore nearly doubled, ­according to data from home building and renovation resource group Hipages.

This renovation frenzy has seen buyers spending up to $2 million on rundown homes and reselling them for profits of $200,000 or more.

This old house at 80 Edith St, Leichhardt, sold for $980,000 in 2014.

The new 80 Edith Street, Leichhardt, is up for sale with a price guide of $1.9 million to $2.05 million.

Further research shows an average renovation will ­increase the value of a home by roughly 20 per cent, and this has been a major factor in ­driving Sydney’s median house price up $120,000 since ­November 2014.

“People ­normally renovate their home ­before they sell it, so home ­improvements have had a huge impact on prices,” ­Hipages analyst Dino Talic said.

More people are realising there’s money to made in home flips, he added.

“It used to be mostly builders renovating, but with all the reno shows on TV, more mum and dad renovators are doing it,” he said.

Real Estate Institute of NSW president John Cunningham said homes with scope for big ­improvement are often selling for more than properties in better condition.

“The city is running out of fixer-uppers,” he said. “Many buyers prefer homes that have been untouched, so they overlook other properties.”

The home at 93 Hill Street, Leichhardt, was purchased in 2008 for $950,000 ...

... and sold for $3.05 million in late 2015.

Newlyweds Kirsten and John Campbell have been fixing up their Randwick unit the past few months and said they see renovating as a way to park money in their home.

“Anything we put in we’ll get back in the long run,” Mrs Campbell said.

Finding a home in need of an update was challenging, Mrs Campbell added. “Other buyers either want a home with modern finishes ­already there or something they can fix up. They’re not interested in anything in between.”

26 John Street, Erskineville, sold for $770,000 in April 2013 ...

... and now rents for $1300 per week. Comparable properties have sold for $1.3 million to $1.5 million.