A family of home sellers in Sydney’s northwest have pocketed nearly $400,000 profit over just 10 months despite doing close to nothing to improve their rundown property.
The sellers had snapped up the Kulgoa Rd house on a dilapidated 484sqm block for about $1.32 million in August and resold it last week for $1.71 million.
The family’s original plan was to knock the house down and replace it with a modern build but they had a change of heart and decided to resell it, according to the agent.
MORE: Inside Karl Stefanovic’s waterfront mansion
Labourer buys 26 homes with same trick
How much average Aussie has in bank
They had sought development approval for a single level house on the block but cancelled the application shortly after lodging it, saving them expensive fees.
It also meant the property sold without development approval from council, which can often add value to potential building sites.
There were also minimal cosmetic changes, with the owner attempting to plug a hole in the roof and painting the inside but little else was undertaken.
LJ Hooker-Ryde agent Benjamin Mulae revealed the work made no difference to the sale because the property was selling at “land value” and the house was “beyond renovation”.
“It did nothing to increase the value. Outside the house was still dilapidated,” he said. “Everyone interested wanted to knock it over.”
Mr Mulae said the owners were able to pocket nearly 30 per cent more than they paid over such a short period because of the rampant pace of price rises in the local area.
“The properties that are performing really well are the ones offering development opportunities,” he said. “People like the ability to be able to build something new.”
The Ryde region has been one of Sydney’s strongest markets in 2021, with the median house price jumping nearly 10 per cent over the three months to May.
Mr Mulae said anyone attempting to build a new house on the Kulgoa Ave block would need to spend about $750,000-$800,000 to construct something of a similar standard to the nearby homes.
“Once finished it could sell for well over $3 million,” he said.