How one couple turned a $60k renovation into a $225k increase in value

Darren and Peta Cobby have had a profitable year and want to share their recent success with you.

However, before you read about their most recent project, watch the following video. Darren and Peta are a very inspiring couple, and watching this video could change the way you look at property forever.

Darren & Peta Cobby

Interview with Geoff Doidge

More information on the Reno King's Property to the Max Workshop.

Current Project

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Darren and Peta are not new to property investing, having begun their investment journey way back in 1994. They have spent the last 12 months deep in renovations on their 11th investment property.

Located in Eumundi on the Sunshine Coast, Darren and Peta had been looking at properties in this town for 2 months having been inspired by the high growth area. “Eumundi is just back from the coast,” says Peta. “The Sunshine Coast has had a great deal of growth in the past few years and the increase in property prices have pushed people away from the coastal areas and up into the hinterland. As a result this has caused more growth in the hinter region”.

Darren and Peta came across the large home on 10 undulating acres and knew that this property was ideal for them. “The property was 35 years old and filled all of our criteria,” Peta tells us. “The bones of the property, the structure, was good and had been well built. We could instantly see how we could add value and how easy it was going to be to transform even the inside. Plus we knew that the location was just right”.

The Cobby’s have always maintained the same strategy with most of their investments and yet again proved that this notion works. “We like to buy properties needing a little renovating so they’re purchased under market value. We then renovate, add value and put tenants in at a higher rental rate. Before long we have the property revalued in order to use the newly gained equity to finance the purchase of another property and start all over again”.  

The couple paid a purchase price of $575,000 for this split level brick rendered and colorbond home. Upstairs the property boasts 4 bedrooms, 1 bathroom, toilet, plus open plan lounge/dining/kitchen and large covered patio whilst downstairs houses 1 bedroom, shower, toilet, laundry and double garage. Peta also tells us. “There was also a fully enclosed shed, chook house, garden shed, pump house and timber cattle yards plus an outside entertaining area”.

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“From our past experience with renovating, we knew instantly what we could do to the place, how much it would cost us and what result we would get from each project. It took us 12 months to complete, from February 2007 to February 2008, and it only cost us $60,000”. They recently had the property revalued at $800,000, making them a staggering increase in value of $225,000. They have however decided not to rent the property out. “We originally thought we could do it up and sell it for a profit. But now we are living in it – it is too good to give up”. 

Before	After

DARREN AND PETA'S TOP RENOVATING TIPS:

• Look at rendering the house. This always adds enormous value to the property.
• Landscaping is a good trick that can be done cheaply and always gives you a good result.
• Painting is a job you can do yourself. This can add value for a minimum outlay.
• Installing air conditioners are always a huge bonus. When renting, tenants are always looking for these little rewards. This is also a major plus in our climate in Queensland and you can always claim the cost back in depreciation.
• We always look for properties that may have timber floors that we can polish. This is another simple way of adding lots of value to your property.

Before	After

RENOVATION COSTS:

Peta and Darren's strategy for purchasing under market value, renovating and using the increase in equity is just one concept of many the Reno Kings teach at their workshop as a way to grow your property portfolio.

For further information on the best type of strategy for you, book your seat to the Reno King's Property to the Max workshop.