Home renovation and improvement: top seven tips for a successful renovation from a serial renovator

Steven Tambouras has been busy flipping homes for big bucks since he was 18, so he knows what he’s talking about.

Renovator Steven Tambouras was just an 18-year-old when he was the underbidder on a Surry Hills dump in inner-city Sydney that sold for $458,000.

It was the year 2000, and Steven was there with his dad, disappointed to have missed out. Undeterred, he ended buying another ‘dump’ in nearby Paddington for $537,000 (with a $50,000 loan for half the deposit from dad).

He thought he’d paid too much at the time but then watched prices rise “200 grand, just like that” amid the post-Olympic buzz. He renovated it and it traded for $1.6m in 2010.

Serial renovators: Steven Tambouras and his father Bill Tambouras outside the latest home they have built, in Paddington. Picture: John Appleyard

“I’d caught the bug,” says Steven, who with his dad Bill has continued buying old houses, flipping them and making a small fortune.

Now, 21 years later, Steven is a bona fide serial renovator and so too is his dad.

They recently turned a derelict terrace into a luxurious duplex for his sister, Denise Mistillis, and her family. That Paddington property recently sold for a record price, too.

The old terrace originally cost $1.5m in 2012 and sold prior to auction for “comfortably over” $8.25m. The previous record for a terrace was set last year at $6.8m.

“We are builders but I guess you could say we are serial renovators,” Steven says.

“We flip a lot of property We buy, fix and sell.”

The duo have built or renovated 17 homes. Picture: realestate.com.au

The Tambourases have broken a number of area records.

Steven says there are seven steps to renovation success.

Steven, a construction manager at Cenric, which is a design and construction company specialising in high quality residential, multi-unit and commercial projects, credits
his father for his strong work ethic.

“Dad migrated here from Greece in 1965 and my grandparents too,” Steven says.

“They all set up camp in Paddington. They love the heritage here; all the terraces – it’s not unlike Athens.

“Dad worked for Multiplex for 21 years and I worked there too, for nine years. We started working on doing up homes together in Paddington in 2001 and really ramped it up in 2007.”

Every major city has areas where original homes are ripe for renovation, and the old homes of Paddington and nearby Woollahra in Sydney’s inner-east have stayed their focus.

The Mistillis family L to R: Denise, Luke -2, Liam -7, Michael and Jack -10. Picture: John Appleyard

He puts some of their success, including breaking area records after selling a restored Georgian cottage in Woollahra, down to “instinct”.

“I grew up in the area, I see which areas perform, which aspect is the best,” says Steven.

In total they’ve bought and sold about 17 homes over the years, saying:

“We’ve had some crackers, we can pick ’em.”

So what are the secrets to making money, especially at a time when housing is booming? Steven breaks it down for us.

TOP SEVEN HOME RENOVATION TIPS

1. The right price

Don’t bid with you heart, bid with your head. The old terrace that Steven eventually renovated for his sister had first been up for auction in 2009.

“When we walked through, we were scared of not only going through the floorboards, but there were also bits of render falling off the wall … it was one of the worst ones I’d ever been in,” he says.

Even so, someone else bought it for $1.6m. Then, in 2012, it hit the market again. The agent called him and saying: “I’ve heard once upon a time you were interested in this, I reckon you guys should have a crack at it – make me an offer.”

Understand the potential of your home or investment.

“We said ‘we’re not prepared to pay more than $1.4m’ and the agent said ‘put $1.5m on a contract and I’ll see what I can do’.”

And that’s what they paid. Incredibly, it was $100,000 less than what it had last traded for.

2. North facing rear yards

Steven and his dad always prefer old terraces with north-facing rear yards to maximise natural light.

“North-facing rear entertaining areas command a high dollar,” says Steven.

3. Wider is better

Wider terraces are highly sought after by both upgraders and downsizers. For new renovators, start small and then build up to wider terraces.

4. Be street smart

Some streets perform better that others so do your research and familiarise yourself with the suburb’s profile before buying in.

North facing yards bring the big bucks.

5. Rear lane access is a bonus

With a terrace or semi it’s unlikely you’re going to have a garage or off-street parking at the front, which means rear lane access is another big bonus.

“Look for rear lanes and access to off-street parking.”

6. Buyers love heritage houses

“At the end of the day, I love heritage,” says Steven. “Apart from a duplex, every other development we’ve done has been restoration.”

It should be as authentic as possible, he says, referencing a job where an original sandstone wall had collapsed. Rather than replacing it with a cheaper, modern option, he called in a stonemason who cut the boulder into sandstone blocks. “We laid a proper sandstone retaining wall.”

7. Know your building history

“You need to know what to spend the money on … what period is it from?” he said. “It’s not everyone’s cup of tea but I love Victorian, Edwardian and Georgian.”

Another renovation success.

UNDERSTAND YOUR HOME’S POTENTIAL

A shortage of stock and low interest rates have pushed prices sky-high at the moment but there are always opportunities, says Steven, recalling a night back in 2010.

“We were bored one night, we had nothing to do. Dad said let’s go to the auction room.” When an interesting property came up, Steven’s dad Bill was quick to recognise its potential. “We thought this is alright, a good floorplan; six-metre wide block. It was a bit of a wreck but we thought, oh well, let’s see how it goes.

“The old boy [his dad] put up his hand and said $1.4m,” Steven says.

“There was only one other opponent and we ended up with the big terrace, in original condition, with rear-lane access for $1.67m.

“It was a bit of a wreck inside, shabby and dirty but that’s what we love.”

They gutted it, turned it into a four-bedroom, three-bathroom home with double lock-up garage. It was still three months from completion when an agent brought a buyer through.

“He presented a cheque for $3.3m … we’d spent $550,000 on it.”

Originally published as Home renovation and improvement: top seven tips for a successful renovation from a serial renovator