Recently returned backpackers create

$46K equity in 8 weeks

Meet Casey Bennett and Tanya Blackley, a young couple who have 3 properties and 2 renos under their belt in a short period of time.  

Where it began.

Casey and Tanya are motivated by a need to enjoy their life and be in charge of their own destiny. "We went travelling in South America for 5 months, arrived back in Australia in June last year and were back behind our desks 24 hours later. We both came home that night, looked at each other and decided on the spot we could not do that for the rest of our lives. We just wanted to be free to travel and live".

"In 5 years from now we aim to be retired from our day jobs and to concentrate full time sustaining an ever-growing portfolio. and say goodbye to the chains of full time.

Properties with a Twist

Casey and Tanya's portfolio currently includes three properties.
"We have a 2-bed apartment in Fairlight (just behind Manly beach), which was purchased for $520k".

"We also have another in the Blue Mountains which was our first renovation.  We bought the property for $230k, and spent 16k on Renos over 2 months. We worked on it on weekends and drove up every other night from Sydney, working on it for 3-4 hours and driving back to Sydney.  We did most of the work ourselves but we did start to get a little tired by the end of it!!! The property has now been revalued at $300k and the rent has increased from $170 to $275 per week".  This means they created $46k equity in only 8 weeks!

"We have used the equity from this renovation as a deposit for the next one.  We picked up the keys 10 days ago. Magic!  This time we took holidays to try and streamline the renovation a little more.  We purchased this 2 bedroom, 2 bathroom for $295K and are planning to turn it into a 4 bedroom and 3 bathroom.  The current rent on this property is $230 and we should be able to increase it to $400+ per week".

This couple are on a role - they eat, sleep and dream property!Without completing this renovation, they already have over $1million worth of property.

STOP PRESS: News just to hand, Casey and Tanya have just purchased another property and this one has subdivision potential.

Renovation Tips!

Tanya and Casey share some tips they have learnt along the way.

• Think things through before you go changing the layout too much, everything you change leads to something else….it never ends!

• First thing you should do when you arrive at a freshly purchased property are locate the power breakers and the water meter tap. In the first day of our first renovation we managed to flood the bathroom and half the living area because the water meter was buried under a rose bush!

• Make as many cosmetic changes you can manage. Walls cost nothing to tear down and re-configure them. Bathrooms are by far the most involved and expensive room of the house.

• Your team around you plays such an important role in your ability to grab opportunities as they fly past, your accountants, mortgage broker and lawyers. We really underestimated how fast opportunities can slip from your fingers if your team is not responding.
   

 Confidence! Research! Team Work!

The lure of creating wealth through property is hard to resist.  However, a lack of confidence, research and education can often take over and hinder many investors from moving forward.  In order to build your wealth you need to dedicate your time and effort into doing your background work before you make your purchase.

"To overcome your fear you need to just get in there; property is something everyone in the world is always going to need. The key is Knowledge".
 
"We attended the Reno Kings workshop and consider it a major contributor to our journey.  The workshop opened our eyes, in particular to renovations for profit, not for taste. It’s hard to overcome the “would it not be nice if we spent a little extra on this or that for them”. We realised potential tenants would rent our property even if it had a $5 light shade instead of a $25 one". 

Tanya and Casey are evidence that with the right motivation and education anything is possible.

Follow their lead. Invest in yourself and get an education. Find the reason and get motivated. Take control.

Visit http://renos.com.au/news/46/ for more information on the Reno Kings educational workshops in 2008.