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There are really only three reasons why a property doesn’t sell. There is something wrong with it that’s difficult and expensive to fix, the selling agent they have chosen is pretty ordinary or it’s way overpriced for what it offer.
Many people believe that if a property has been on the market a long time thenthere’s probably something wrong with it.
However, the most common reason why a property has not sold is because it’soverpriced.
When a property is overpriced it often takes the sales agent several weeks, sometimes several months, to adjust the vendor’s expectations down to fair market value. By the time they do this, the market perception of that property is that it’s a lemon.
Buying overpriced properties after they have been listed for sale for a long time is often where we get some of the best genuine bargains. The vendors are usually over the stress, open homes and sales process and if you deploy good negotiation tactics at the right time you can get some great deals.
In many of these instances, there have been no offers at all which significantly reduces the buying competition for you.
Alternatively if you find out that the seller has turned down multiple offers for less money, then it might simply come down to a matter of timing. Next time you see a property that’s been on the market for a couple of months or even longer, don’t automatically ignore it as many people do.
If it meets your needs, and the building and pest inspection checks out, then youmight even be able to buy it below market value.
Patrick Bright is a Sydney-based <a target="_blank" href="https://www.epspropertysearch.com.au/patrick-bright">buyer’s agent and the author</a> of four real estate books in his ‘Insider’s Guide’ series. 
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Bargain can be found in overpriced properties: Patrick Bright

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Property Observer has written a great article on listing website <a href="https://www.propertyobserver.com.au/residential/unders-and-overs-apm-s-askew-market-price-estimates-upsetting-domain-agents-listings-aplenty/2013021359339" target="_blank">Domain's new property price estimates</a> that highlights several of the pitfalls of relying on data reports.
Some good points have been made, including: "APM stresses the figure does not take into account the potential impact of external influences such as a change in economic conditions, future planned infrastructure and environmental conditions."
This is exactly right, and I don't know of any other data reports that do.  The reports also don’t take into account the shape of the block or the slope of the block. If the house is at the front, back or middle of the block.
It doesn’t state whether the property is on the high side or low side of the street and how much natural light it gets.  Other unanswered questions include: what does the floor plan/layout look like? How about the size of the bedrooms, bathrooms, lounge, dining or kitchen, all of which will have a significant impact on price?
They also fail to take into consideration the internal condition of a property. For example: is it renovated, partly renovated or unrenovated, and if renovated, has it been done properly or has it been renovated by a DIY Bunnings weekend warrior?
Another thing the valuation tool doesn't take into account is privacy. Are any of the bedrooms or living spaces looked in on by neighbours? How about the backyard or pool area? If there’s a view is it a big view or a small one? What material is the home constructed out of – brick, fibro or timber?  The list goes on, and from my decades of experience in the building and real estate industry these variables that data reports don't take into account can impact a price by easily 20% or more. By the way, this is not unique to an APM report or market price guide, as they are often referred to. I am yet to see any automated property data report that can do what a real person can do.
Here’s another quote of interest: "Market price estimate reports are typically bought by buyers seeking some price guidance,"
Yes, they are and people who rely on them are likely to either pay too much or be putting in an offer that has little resemblance to fair value so they will more than likely miss out.
The really interesting/scary thing is that most valuers rely on data services just like APM to assist them in conducting their valuations.
Sure, because there is a human element added to the valuation report they can and do dismiss properties that obviously shouldn't be included in formulating the price estimate provided it’s not a "desktop valuation" and they actually got in their car and drove by some of the properties they used in the valuation report. However, given they can't inspect inside or see out the back of the properties used as comparables in their report they are still likely to be quite a bit out. There are not too many valuation reports I have seen over the past decade that I would have been happy to have relied upon.
I think the last four paragraphs pretty much sum it up: “Property Observer conducted a survey in April last year that concluded that buyers and sellers placing belief in free online web price estimates when estimating envisaged house price values are more often than not being misdirected – with serious over- and under-estimating being given.
"A survey of weekend auction results across Sydney and Melbourne showed estimates by real estate portal OnTheHouse.com.au were askew 67% of the time.
"Of the 80 auction results analysed, 54 estimate were incorrect, with some actual sale prices up to  55% off the pre-auction valuation range given by OnTheHouse.com.au.
"Just 26 sales actually fell within the wide estimate band."
I believe property data reports are helpful when you actually know and have seen inside or out the back of some if not all of the properties mentioned in the report so you can benchmark them against the target property. If not, they can be quite confusing and misleading. This is why you should listen to an experienced real estate agent, be they a selling agent or buyers' agent, as they will have been in many of the properties that are noted on such reports. With their experience they can help you determine whether the property you are either selling or buying is a good comparable and if it is actually superior or inferior (and in what way) to the ones mentioned in such a data report.
Should you rely on property data reports? I wouldn't.
 
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a target="_blank" href="https://%20www.epspropertysearch.com.au">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing. 
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Why you should not rely on property data reports

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"How much should I pay?" is probably one of the most difficult questions for investors and in particular home buyers to answer. Everyone wants to get the best deal when they buy. But how do you know what a good deal is? Before you can decide whether you're getting a bargain or not you need to do some research to work out the market value of the property. Comparative market analysis is extremely powerful when you're trying to negotiate the best-possible price.
Inspect 100 comparable homes
When I started in real estate as a selling agent I didn't really have a clue what homes in the area were worth. The owner of the real estate office said to me, "Patrick, you need to learn what the market value is of homes in the area. I want you to go out and see as many properties as you can in the next few weeks". He told me I had to inspect each home and document all its relevant features. I decided that I was going to inspect 100 properties and so I pretended to be a home buyer for about four weeks. I covered four or five suburbs, looked at a little over 100 properties and took notes on each one. I wrote down the asking price and what I thought they were worth and followed them up after they'd been sold. I attended lots of auctions as well. By the end of that month I had a pretty good idea of what the market was doing and how much property in the area was worth.
"Go out and learn what the market value is" was the best damn advice I was ever given to assess value, and it's the best damn advice I can give you. It's the best way for you to learn what properties are worth. If I, or one of my team, is looking for a property for a client we still do the legwork and inspect around 100 properties. I've purchased properties all over Sydney, in different states of Australia and across all price ranges, and I always stick to this formula. You could drop me anywhere in the world, give me enough time to inspect 100 properties, and I can assure you that I won't be paying retail when I buy.
Set aside some time and start inspecting properties in your top three suburbs that match your wish list. A comparative market analysis compares homes that are similar in size, configuration, condition, and location. They have to be in your price range too. Remember, you're looking to compare apples with apples.
I find a lot of people are looking over such a wide area and range of homes and they think they understand market prices. They don't! You've got to focus on properties that are as close as possible to your wish list because there's no point in looking at $850,000 homes if your price range only goes up to $650,000. If a three-bedroom townhouse is on your wish list, that's what you're looking for. Not two-bedroom cottages or four-bedroom apartments.
Why do I suggest that you have to look at 100 properties? Well, if you only inspect 50 you're probably not well enough informed. From my experience 100 properties is enough for the average person to be on the ball about comparable prices. If you looked at 150 I don't think you would be that much better informed.
There's no denying it, inspecting 100 properties is a lot of work. If you make a concerted effort you can probably complete it in six to eight weeks (less than two months).
You've got to be disciplined and stick with it because inevitably you'll fall in love with the twentieth property you look at. Remember, in the early stages you're looking for research purposes, not to buy (we'll get to the buying stage later). If you go ahead and buy now then you can't be sure you're paying the right price or that you have seen enough to know what's really out there that may be suitable because you haven't looked at enough comparables to determine fair market value.
So don't stop until you've seen 100 homes. As you view each home make a note of the important features and put your price on the property. When you follow up with the selling agent to see how much it sold for you can see how accurate your valuations are. Over time you'll develop a gut feel for what property in your search area and price range is worth.
After you've inspected 100 homes you'll have gathered a lot of local knowledge that will help you value homes in your chosen area. For example, small differences in location can create significant differences in price. Every suburb has several streets where the price for a very similar home can differ by as much as 10% or even 20%. Sometimes these streets are cut in two by a suburb boundary line or a main road. People will pay substantially more to live in a property 100 metres up the road in order to have a more prestigious post code or street address.
Sometimes the price difference happens for a number of not so obvious reasons. For example, one side of the road provides greater access to schools, local shops, the bus stop, etc. How are you going to know about this type of important area-specific information before you buy unless you do your research and become an area expert yourself (or hire an experienced buyer's agent like me)?
 
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You'll know as much as the selling agents
A lot of people assume real estate agents are experts in valuation. They're not. They generally know the values in their particular service area because they sell a lot of property there but that doesn't necessarily mean that they know prices in every area and every price bracket.
Selling agents are scattered all over town, but each one only services a small area, which is usually about a three to four-kilometre radius – five kilometres at best – from their office. So if you take an agent from the inner Sydney suburb of say Surry Hills, and put them over the other side of the Harbour Bridge just 10 minutes drive and eight kilometres away in harbourside Mosman, do you think they know what the current home prices are there? They haven't got a clue. They are what I call an "out-of-area agent" and can often be the best agents to negotiate with as they're much easier to influence. I'll talk more on that later.
Selling agents also list properties for sale in a wide price range. Recently when I was looking at a property I met the agent as he was running from one open inspection to another. He had his name on properties from $400,000 up to $3 million. Is he an expert at valuing $400,000 properties? Probably not. Is he an expert at $3 million properties? Probably not.
Selling agents are what I call "price-guide generalists". That's often why many want to auction properties, as they don't know what the property is really worth. Ever been to an open home and said to an agent “what are the owners looking for?” The answer is often quite non-committal. They'll say something like buyer feedback is between $500,000 and $600,000 or bidding is expected to start from $550,000, and it sells for $700,000. Or you read in the paper that the property was passed in below what they were quoting you or sold for $80,000 above reserve. Yes they might be underquoting to you however its often partly because the agent was guessing a bit and so was the vendor, and the vendor was relying on the agent for feedback and a price guide when setting the reserve.
However, if you're inspecting only three-bedroom townhouses in the $600,000 to $750,000 price range, you will become an expert on that particular type of property in that area at that time. If you inspect 100 comparable homes you will know as much, if not more, than most of the selling agents in the area on your preferred type of property.
As I go through properties I get a lot of the selling agents asking me, "Patrick, what do you think this is worth? Is it priced right?" And why do they ask me? Because they know I'm looking at dozens and dozens of properties that compare to the one they're selling and I know what the current fair market value is.
Knowledge is power
Your comparable market analysis is a huge asset when it comes to negotiating a price for your home. Knowledge is power, so become knowledgeable. When you've done your research you'll be able to assess the fair market value and know how much you should pay to get a good deal. You'll also know what a sensible maximum bid is at auction. When a selling agent tells you they think a home is worth some outrageous price you can tell them "Good luck".
I see people pay over and above fair market value all the time. If you've done your research it won't happen to you. People also often buy well below fair market value and you'll be able to spot the bargains too, provided you've done your research.
<img style="margin: 5px; float: left;" alt="insiders" height="233" width="150" src="/images/stories/2012/12/insiders.jpg">
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a target="_blank" href="https://%20www.epspropertysearch.com.au">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing. This is an excerpt from <a href="https://www.propertybooks.com.au/the_insider's_guide_to_buying_real_estate" target="_blank">The Insider’s Guide to Buying Real Estate</a>, second edition
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How to determine a property's true value: Patrick Bright

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Renovating residential investment property is a great way of building wealth quickly. It’s a relatively low-risk strategy if executed correctly and will allow you to manufacture capital value and increase rental returns without relying solely on market conditions. 

Back in 1999 a friend of mine wanted to sell a house his parents left him when they passed away. Since he knew that I knew a bit about real estate he asked for my help. The house had been neglected for 18 months and was in very poor condition. A few local real estate agents gave him valuations ranging between $320,000 and $340,000.

I did a little research and was confident my friend could get more if he tidied up the house but he couldn’t be bothered and just wanted to sell it as it was. So we made a deal. I would fix up the house and when he sold it we would split whatever profit we made, based on the average of the initial valuations less the renovation costs. So I got stuck into it, working 12 hours a day for a week.

I cleared out all the junk, filling two jumbo skip bins. I had the floors sanded and polished and touched up the interior paintwork. I tidied up the gardens, trimmed some trees that were overhanging the roof, had some stumps removed and put bark on the garden beds. I washed the outside of the house and touched up the paintwork, replaced the cracked roof tiles, cleaned the gutters and painted them as well as the eaves.

The cost of the makeover was just over $10,000 plus my labour. Only two weeks after their initial valuation, we asked two of the original selling agents (plus another one) for a fresh valuation. They all valued the house between $390,000 and $410,000. It sold for $395,000. So for an outlay of around $10,000 plus one week of my labour we had increased the value of the house by $65,000.

In essence, I had converted a little imagination and one week of my time into $27,500, which I used – yes, you guessed it – to buy some property to renovate. Now that you can see what’s possible, here are my top three reasons why renovating residential property is one of the best investment strategies:

1. It’s easy to understand

With the popularity of shows like The Block and The Renovators, most people are familiar with the concept of property renovation and how it can increase the value of a property. Because people already understand how it works, they don’t have to struggle with the basics and can get on with practising their skills and developing their techniques.

2. You’re in control

How much control do you have over the performance of shares you buy? Unless you own a big enough chunk of shares in a company to get yourself a seat on the board, very little. The board of directors can make bad, negligent or straight-out criminal decisions, wiping significant value off your shares, and apart from selling your shares and investing elsewhere as a sign of protest, there’s not much you can do about it.

However, with property renovation you’re in the driver’s seat. Maximum return comes from a property when it’s improved to its “highest and best use” for its tenants and buyers. Because you make all the decisions, you can be proactive to ensure the property reaches its highest and best use.

You don’t have to quit your day job, but renovating can become a full-time career if you want it to. You can potentially make more money in less time than you’re earning now.

3. You can “manufacture” capital growth

If you buy a parcel of shares is there anything you can do to add value to them? No. You can add value to a business but unless you’re a naturally gifted entrepreneur, growing a business is hard work. It usually takes a significant commitment of time, money and emotional energy and according to some reports and business books I have read you have an 80% chance of going out of business within the first five years.

In comparison, adding value to an investment property is relatively simple if you know what you are doing. You add value by taking a structurally sound but run-down property and smartening it up, making it more desirable, and thus more valuable, to renters and buyers.

You can give it a coat of paint and tidy up the garden. Or replace all the doorknobs, build a barbecue, replace the carpet or polish the floorboards. There are literally hundreds of improvements, big and small, that you can do to increase the value. The trick is to add more value than the actual cost of the improvements.

By doing creative, cost-effective cosmetic renovations you can “manufacture” capital growth. Rather than just sitting back and waiting for the market to deliver capital growth over time, you accelerate the process by manufacturing capital growth with a renovation. This allows you to build wealth faster than relying solely on market increases.

As an added bonus, renovating can also increase your cashflow via the higher rent you can achieve for the renovated property. So you have two ways to profit: capital growth and increased cashflow. If you’re clever about it, the increased rental income you generate can cover the costs of financing the renovation. This means you can achieve the capital gain without putting in any of your own money.

In summary, renovating is a solid approach for building wealth which is less reliant on outside factors which are beyond your control. The only limit is your imagination. I firmly believe that building wealth through renovating residential property is a skill that can be learnt by just about anyone.

If you don’t include renovating as part of your property investment strategy then you’re probably not maximising your potential returns. You can use it to fast-track the growth of your portfolio, create an additional income stream, or a combination of the two.

My definition of renovation

When I refer to renovation I’m talking about cosmetic rejuvenation. I’m not talking about buying derelict property and making it liveable again, restoring period homes or fixing major structural defects. What we’re doing is taking a structurally sound but messy property, smartening it up and adding the “wow factor” on a limited budget.

The type of renovation projects you attempt should be in line with your level of knowledge, skills and tradespeople contacts. By using some common sense I believe most people can handle a basic rejuvenation without too many dramas.

My seven-step plan for renovating for profit

The secret to success in anything you do is having a good plan, conducting your research and working smartly. To get you started I want to introduce my proven seven-step plan that I use to renovate properties for profit, for myself and my clients:

Step 1: Understand the renovation profit formula – once you understand the theory you’ll see where the profits lie.

Step 2: Work out how much you can afford – you need enough in the kitty to cover the three major costs of renovating.

Step 3: Target the right property type – match your risk profile to the right type of property.

Step 4: Market research and preparation – it all comes down to the all-important research.

Step 5: Select the right property to buy – how to spot a property with the maximum profit potential.

Step 6: Pay the right price – how to work out the maximum you can afford to pay and still make a healthy profit.

Step 7: Get the work done on time and budget – avoid profit-shrinking cost overruns and delays.
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a target="_blank" href="https://%20www.epspropertysearch.com.au">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction, The Insider’s Guide to Profitable Property Investing and The Insider's Guide to Renovating for Profit. This is an excerpt from The Insider's Guide to Renovating for Profit. 
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a>
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Three reasons you should renovate for profit

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The secret to renovating for profit is in selecting the right property, conducting thorough research and having a good plan. 
It is important that the type of renovation projects you attempt is in line with your level of knowledge, skills and tradespeople contacts. 
There are literally hundreds of improvements, big and small, that you could do to increase the value of their property. 
By using some common sense I believe most people can handle a basic rejuvenation without too many dramas. 
The trick is to add more value than the actual cost of the improvements. 
This is my seven-step plan to renovate properties for profit: 
Step 1: Understand the renovation profit formula 
In simple terms the renovation formula is: Your renovation profits margin equals the renovated value of the property minus the purchase price and total renovation costs.
Once you understand the theory you’ll see where the profits lie. The formula is like the filter through which you view a property. 
Step 2: Work out how much you can afford
 
You need to have enough saved to cover the three major costs of renovating: the cost of buying the property, the cost of renovating the property and the selling costs or the ongoing costs to hold the property. 
Step 3: Target the right type of property 
Match your risk profile to the right type of property. Before buying a property to renovate it is important to consider your risk profile carefully, including how comfortable you are with the possibility of losing money, or that the return on investment may not be as high as you had hoped for. If you’re new to property investing and/or you’ve never renovated a property before, I recommend you cut your teeth on a simple project. Start off with an apartment – it’s better to start small to minimise your risks. 
Step 4: Market research and preparation
 
This involves identifying suburbs with the greatest profit potential, researching property values, brushing up on design and decorating, and selecting a team of quality tradespeople. 
Step 5: Select the right property type
Look for a property with the maximum profit potential. Your first consideration here should be the condition of the property. Search for something rundown, but not totally derelict. 
Step 6: Pay the right price 
Work out the maximum you can afford to pay and still make a healthy profit. One of the fundamentals of renovating for profit is that you buy well. I always begin with the end in mind, by that I mean I work out what the post-renovated value will be, the costs to get it in that state, calculate the holding costs, decide on the amount of profit I want to make then I know my maximum purchase price. 
Step 7: Get the work done on time and within your  budget 
Avoid profit-shrinking cost overruns and delays. Make sure you use a spread sheet to
schedule the works. You need to ensure all the tradespeople do their work in the right sequence. Always add a buffer of a day or so around each tradesperson. This gives you wiggle room if there are delays.
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a href="https://%20www.epspropertysearch.com.au" target="_blank">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing. 
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The seven-step plan for renovating in the new year

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Over the years I’ve noticed several common traps that renovators fall into. From not conducting enough comparable market research to thinking you have to do all the renovation work yourself in order to make a profit. There are numerous pitfalls that can eat into your bottom line and destroy your confidence. Here are the top six mistakes to avoid.
1.   Not doing enough research
I can’t overemphasise the importance of undertaking comprehensive research because it’s fundamental to each and every step of the renovating for profit process. When you boil it down, every one of the following mistakes can be avoided by doing research.
The vast majority of the effort involved in renovating for profit is research and preparation, but so often I see people rushing in, thinking they know it all, and ending up with a disappointing result. If you don’t take the time to cost your renovation accurately, you could end up with a half-renovated property and no money to finish it. If you don’t do enough comparable market research you could overestimate the value of the property post renovation and get a nasty shock when you go to sell.
Renovating for profit requires time, effort and dedication. The time and effort you put into research will ultimately determine the amount of profit you make.
2.   Paying too much for the property
The purchase price has a direct impact on your profit margin. Every dollar you negotiate the purchase price below your maximum is another dollar of profit for you. However if you set your maximum purchase price too high (because you didn’t do enough research to understand fair market value), or you exceed it (because, for example, you lost self-control bidding at an auction), your profit will suffer.
Purchasing at the right price to ensure you make a profit comes down to knowing market values and negotiating well. All too often I see property investors taking short cuts on the research and market analysis and not bothering to hone their negotiation skills. In the end they pay too much, don’t end up making a profit and don’t maximise the return on their investment. Remember if you’re not experienced at something (for example, tiling) then outsource it!
3.   Not renovating for the target market
If you’re renovating your own home it’s all about pleasing yourself, however when you’re renovating for profit it’s about appealing to the target market, i.e. tenants and buyers. Unfortunately many people get this wrong. They let their “know it all” attitude get in the way and decide what they like is best for everybody.
How many times have you walked into a property for sale and been appalled by the décor? I can assure you it happens to me all the time. Anyone who wants to buy such a property will reduce their offer by the amount they’ll have to pay to have the place redecorated to their taste. So you can see how getting the décor wrong can easily erode a renovator’s profit.
It’s always safer to go for a conservative, neutral but classy décor that’s appropriate to the local market and will appeal to the masses, not the few. If you’re not sure how to achieve that result, get professional advice from an interior designer. I’ve always found this kind of advice a very worthwhile investment.
4.   Over (or under) capitalising
When you’re renovating for profit, adding value is the name of the game. Unfortunately you can’t add unlimited value to a property because there is a limit as to what the market will pay for say a four-bedroom, two-bathroom, double lock-up garage house. Once a home has reached its ceiling price for the accommodation it offers, buyers will not pay more. It doesn’t matter how much Italian marble, state-of-the art electronics and gold-leaf ceilings you put in it.
I know I’m sounding like a broken record here, but it all comes back to your research. When you’re undertaking comparable market analysis you need to establish the ceiling price of fully renovated properties that are similar to the ones you’re targeting. To avoid overcapitalising, prioritise your expenditure on improvements that will add the most value. Be mindful of the price ceiling and resist the temptation to overspend.
It’s also possible to go the other way and under-capitalise on a renovation. This usually happens when you’re trying to save money. For example, you put in a cheaper kitchen with laminate benchtops but the target market prefers a much higher-quality kitchen with CaesarStone benchtops and European branded appliances.
So they lower their offers to take into account the cost of re-doing the kitchen to what it should be for a property of its style, position and character or they dismiss the property from consideration altogether because renovating is too much of a hassle for them. Either way, it’s bad news for you.
If you don’t have the budget to renovate a property to the standard the target market expects then it’s better to set your sights on a more affordable property that you can renovate properly. Otherwise wait until you’ve saved more money.
5.   Relying on the sales agent’s opinion about renovated value
Here’s another reason why you have to research the prices of renovated properties for yourself. You can’t rely on selling agents to give you an accurate estimate of the renovated value of a property. If you ask them what a property would be worth when it’s renovated they’re more than likely going to give you a very optimistic estimate.
Why would they do this? Well, apart from the fact that it’s in their nature to be very bullish with sale prices as no one wants to list their property for sale with a pessimist, it’s also in their vendor’s financial interest. They want to paint the property in the best possible light to encourage you to make an offer on it. The other problem is it’s also an unqualified estimate as they may interpret what you intend to do with the property as more high end than you actually intend to do.
6.   Doing the work yourself to “save money”
If your budget is small there’s always a temptation to do some or all of the work yourself to save money but DIY renovations can easily backfire. If the quality of workmanship is substandard this will diminish your sale price, possibly eliminating any profit you might have made in much the same way as under-capitalising on a renovation.
It’s also a false economy. You might save a few bucks on the cost of the renovation, but how much is your time worth? The time it takes you to paint walls and sand floors could be better spent looking for another deal. Plus, the longer it takes you to renovate, the more you’ll pay in holding costs. Why not just hire professionals to do all the work? Especially since you can still make a healthy profit without picking up a paint brush.
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a href="https://www.epspropertysearch.com.au" target="_blank">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction, The Insider’s Guide to Profitable Property Investing and The Insider's Guide to Renovating for Profit. This is an excerpt from The Insider's Guide to Renovating for Profit.
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The top six profit-killing mistakes to avoid when renovating

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With all the renovation shows on television there’s currently a lot of interest in buy, renovate and sell projects.  Here’s a real example of why would-be renovators should consider a buy, renovate and hold strategy rather than choosing to sell off their asset.
 
Property summary:
 
Location: <a href="/news">Cremorne</a>, Sydney
Property type: Three-bedroom, two-bathroom apartment 
A three bedroom apartment was purchased in <city><place>Sydney</place></city>’s <place><placename>North</placename><placetype>Shore</placetype></place> in original condition. The property boasted <place><placename>Sydney</placename><placename>Harbour</placename></place> views from the kitchen, lounge and dining rooms. 
The apartment was gutted with walls removed between the kitchen and dining and lounge rooms. This opened up the living space and increased the natural light in the apartment. A false ceiling and down lighting were added to the kitchen to define the space. 
Both bathrooms were gutted and redone from scratch. A brand new kitchen was installed complete with a washer/dryer in a cupboard, allowing the tenants to do their laundry without leaving the apartment. The renovation was completed with new paint, blinds and light fittings over a six week period. 
The numbers:
<ul>
<li>Purchase price: $805,000</li>
<li>Post renovation value: $1,025,000</li>
<li>Total added equity: $220,000</li>
<li>Renovation costs: $101,500 (includes project management fees and holding costs)</li>
<li>Manufactured equity: $118,500</li>
<li>Pre renovation rent: Estimated $675 per week (owner-occupied at time of purchase)</li>
<li>Post renovation rent: $850 per week</li>
</ul>
After renovation the owner had the option to hold onto the property as an investment or sell the property and pocket any profit.  Both options are examined below using the figures from this real example.
 
Renovate and hold:
The benefits of holding onto this property after renovation are twofold.  Firstly, the increased equity of $118,500 can be used as security to borrow against to buy another property or invest elsewhere. 
Secondly this renovate and hold strategy example resulted in an increased rental rate of $175 per week.  This rental increase ($9,100 per annum) more than covers the interest cost of the funds required to undertake the renovation ($101,500 x 7% = $7,105 per annum). In this example the renovation increased the return on investment both in capital value and cashflow. 
It’s important to note that under a buy and hold strategy the purchasing costs are apportioned over the period the property is held and are only realised upon the sale of the property.
 
Renovate and sell:
Most people who undertake a buy, renovate and sell project complete the transaction within a 12-month period.  Therefore they receive no tax concessions on the profit unlike the owner who chooses to hold the property for more than 12 months. 
Under this strategy, the owner must account for the buying and selling costs as the asset is being realised with the major expenses in this example totalling $65,971 as outlined below:
<ul>
<li>Marketing - $1,500 (web, signboard, floor plan, brochures) </li>
<li>Selling fees - $22,550 (2.2%)</li>
<li>Stamp duty - $41,921 </li>
</ul>
After costs the owner is left with a profit of $52,529 which is then taxed at their marginal tax rate resulting in a modest return for the work invested.
 
The final word:
The example above illustrates the difficulty in making a reasonable profit when undertaking a buy, renovate and sell project in comparison to the financial gain and flexibility provided under a buy, renovate and hold strategy. 
Patrick Bright is a real estate author and founder of Sydney-based buyer’s agency <a href="https://%20www.epspropertysearch.com.au" target="_blank">EPS Property Search</a>. Bright has purchased over $500 million worth of real estate for clients. His best-selling titles include The Insider’s Guide to Buying Real Estate, The Insider’s Guide to Saving Thousands at Auction and The Insider’s Guide to Profitable Property Investing.  
For expert commentary and analysis on lessons to be learnt from property reality TV, <a target="_blank" href="https://register.propertyobserver.com.au/lights-camera-auction/">download our e-book Lights, Camera, Auction!</a> 
</body></html>

After you renovate, sell or hold? A case study

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Patrick Bright

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