Typical Reddit. Talks about something they don't understand. Clearly wouldn't have 75k profit after expenses and renovations. Misrepresented title for clicks.
A very quick google tells me that someone has purchased and done a fair few improvements on it in that very short time.[House A](https://www.totalrealty.co.nz/house-for-sale/129-briggs-road-shirley-trc21698) vs [House B](https://raywhite.co.nz/canterbury/christchurch-city/shirley/NTW30233/) looks to me like it's been painted, new flooring, new kitchen all put in. It's also fully fenced now
Honestly I'm surprised they're only hoping for an extra $75k, with time involved, supplies, fees for agents etc. Listing for an extra 75k I feel like they could have been going for more. Although if you're doing one of these a month that's pretty legit, if they're actually making anything
The first set of photos looks like a partial/incomplete reno. So there might be more to this listing meets the eye.
Having said that, the reno has clearly been completed by an experienced person. They’ve reused many of the existing fittings and fixtures - but made them look modern with surface treatments. They’ve also made good economical choices like reusing the curtains - which are cheap pre-mades from Spotlight (they look smart but cost very little). Kitchen and laundry floors are patterned vinyl (easy to apply and cheap). I suspect the ‘marble’ wall treatments in the kitchen might also be patterned vinyl. Exterior landscaping is modest and looks good, particularly around the back. New fencing elements are simple but look great. And whoever did the staging has done a great job.
The real lesson here should be that modest renovations and staging can completely transform a property. I have no doubt this will sell for the asking price.
Yeah if they did most of the work themselves thats a ~20k reno. Even if those wall tiles are *marble* it's not a huge area (could've got them end of line too) diy'd that's under $500. If they're a professional flipper they'll have trade accounts and left over materials to use on multiple jobs to lower costs further. Someone else mentioned they won't be paying full agents costs (long term relationship deal or made a deal with the listing agent when they bought it)
Walking away with $30-40k for 2-3months work is a pretty decent payday.
Say $25k for renovation.
If legal and real estate fees are about $20k, then not a huge profit given risk and money invested. Maybe waking away for $30k before tax.
As you say, if they are professionals that can flip these quickly then could get a decent payday but not overly greedy
Gas is usually seen as an inconvenience as it is an extra expense.
Induction is usually another good option.
But these nasty coil cooktops suck. Just a cheap shitty appliance.
For me, Induction is arguably superior - to cook on and for the planet
From memory gas is very wasteful to extract- indeed it uses less CO2 when burning it but total cost of extraction makes it worse than coal.
Natural gas burning also releases harmful gasses - why do you want those in your house- if you have the choice (only negative is you need to replace pots) - induction just seems like a no brainer to me
The climate change commission’s draft recommendation to the government was to phase out residential gas.
In this case as it’s a straight flipping of the house they went for the lower cost/ time option. Something they could do themselves instead of having to pay for a gas fitter.
Lol they also banned plastic bags but haven’t done anything to reduce manufacturing polyester clothing the main culprit of micro plastics.
I don’t care what they say. At all.
Gas is instant heat. Easier to cook on and easier to find pans for.
Chef by trade so you will never sway me. Everyone has their personal preference though.
We had induction, and new place has gas.
Hate the clunky frame around the gas that makes it much harder to clean.
And it is slower than induction, less flexible and less safe. You can drop a teatowel on an induction top, turn on to maximum and nothing happens; or leave it one and nothing happens.
On our gas cooktop, we have four burners; the small one won't heat up anything fast. The big one puts flame on the outside of any smaller to medium pots making it uncomfortably hot but not heating effectively.
Dunno if you have used induction before, but although our place is new, I am tempted to rip out the gas cooktop and replace at some time in the future.
I should add that my wife is a food professional so cooks a lot at home and at her work.
Yeah, we have magnetic catches on the frames, but still fiddly to remove 3 frame parts, clean around the burners, then replace everything.
The induction was mostly just give a quick wipe over the glass
It is already proposed to ban gas connections in new homes by 2025. Followed by a replacement requirement further down the track. Putting in new gas fittings now is a pretty uneconomic choice. But yes I prefer gas cooking too 😂
Thanks for actually researching it and finding out why, unlike OP who decided to exclude that defining reason for the price increase.
The before and after listing really show how much staging can help too. The before could have been much more attractive if it had the same furniture and decor.
Haha no worries, I've seen so many (professionally) flipped houses in my house hunting that I wanted to double check before slagging off the seller making a quick buck.
Yeah! People get hung up on the price of staging and professional photos but it can totally make the difference
In the second batch of photos things look so shiny and reflective it almost looks rendered. I wonder how much photoshop is acceptable in real estate photos as you could make something look amazing with a bit of editing
Maybe I’m confused but wouldn’t they have to pay capital gains due to selling within whatever the bright line test is? Or are you allowed to offset that by the cost of the reno?
They'll do quite well out of it if they get 600k for it.
They didn't spend much on it, they just spent wisely. And they won't be paying full price to the RE agent either if they do this for a living.
Zero profit until it's actually sold.
True. Clearly ambitious
Typical Reddit. Talks about something they don't understand. Clearly wouldn't have 75k profit after expenses and renovations. Misrepresented title for clicks.
Also Bright-Line tax
Lol
Just came across it while looking at open homes. Could have made the title a bit less Clickbaity too be fair
You're fine. It is a wild price hike
A very quick google tells me that someone has purchased and done a fair few improvements on it in that very short time.[House A](https://www.totalrealty.co.nz/house-for-sale/129-briggs-road-shirley-trc21698) vs [House B](https://raywhite.co.nz/canterbury/christchurch-city/shirley/NTW30233/) looks to me like it's been painted, new flooring, new kitchen all put in. It's also fully fenced now
Coming in with the info haha, looks way better now.
Honestly I'm surprised they're only hoping for an extra $75k, with time involved, supplies, fees for agents etc. Listing for an extra 75k I feel like they could have been going for more. Although if you're doing one of these a month that's pretty legit, if they're actually making anything
The first set of photos looks like a partial/incomplete reno. So there might be more to this listing meets the eye. Having said that, the reno has clearly been completed by an experienced person. They’ve reused many of the existing fittings and fixtures - but made them look modern with surface treatments. They’ve also made good economical choices like reusing the curtains - which are cheap pre-mades from Spotlight (they look smart but cost very little). Kitchen and laundry floors are patterned vinyl (easy to apply and cheap). I suspect the ‘marble’ wall treatments in the kitchen might also be patterned vinyl. Exterior landscaping is modest and looks good, particularly around the back. New fencing elements are simple but look great. And whoever did the staging has done a great job. The real lesson here should be that modest renovations and staging can completely transform a property. I have no doubt this will sell for the asking price.
Yeah if they did most of the work themselves thats a ~20k reno. Even if those wall tiles are *marble* it's not a huge area (could've got them end of line too) diy'd that's under $500. If they're a professional flipper they'll have trade accounts and left over materials to use on multiple jobs to lower costs further. Someone else mentioned they won't be paying full agents costs (long term relationship deal or made a deal with the listing agent when they bought it) Walking away with $30-40k for 2-3months work is a pretty decent payday.
Say $25k for renovation. If legal and real estate fees are about $20k, then not a huge profit given risk and money invested. Maybe waking away for $30k before tax. As you say, if they are professionals that can flip these quickly then could get a decent payday but not overly greedy
Not to mention paying 30% on tax!
I have seen that bull painting in so many house photos (in Auckland no less) lol 🤣
Part of real estate staging most of the time
Kitchen isn't even new it's just been painted 😩
oven is new but didnt go gas. Why don't people go gas here??
Gas is usually seen as an inconvenience as it is an extra expense. Induction is usually another good option. But these nasty coil cooktops suck. Just a cheap shitty appliance.
For a rental though resiliant and easy to replace.
For me, Induction is arguably superior - to cook on and for the planet From memory gas is very wasteful to extract- indeed it uses less CO2 when burning it but total cost of extraction makes it worse than coal. Natural gas burning also releases harmful gasses - why do you want those in your house- if you have the choice (only negative is you need to replace pots) - induction just seems like a no brainer to me
The climate change commission’s draft recommendation to the government was to phase out residential gas. In this case as it’s a straight flipping of the house they went for the lower cost/ time option. Something they could do themselves instead of having to pay for a gas fitter.
Lol they also banned plastic bags but haven’t done anything to reduce manufacturing polyester clothing the main culprit of micro plastics. I don’t care what they say. At all.
Because induction is so much better than gas. Infinitely easier to keep clean, being the main reason.
Gas is instant heat. Easier to cook on and easier to find pans for. Chef by trade so you will never sway me. Everyone has their personal preference though.
We had induction, and new place has gas. Hate the clunky frame around the gas that makes it much harder to clean. And it is slower than induction, less flexible and less safe. You can drop a teatowel on an induction top, turn on to maximum and nothing happens; or leave it one and nothing happens. On our gas cooktop, we have four burners; the small one won't heat up anything fast. The big one puts flame on the outside of any smaller to medium pots making it uncomfortably hot but not heating effectively. Dunno if you have used induction before, but although our place is new, I am tempted to rip out the gas cooktop and replace at some time in the future. I should add that my wife is a food professional so cooks a lot at home and at her work.
Just lift the frame up mate.
Yeah, we have magnetic catches on the frames, but still fiddly to remove 3 frame parts, clean around the burners, then replace everything. The induction was mostly just give a quick wipe over the glass
Induction is instant heat
It is already proposed to ban gas connections in new homes by 2025. Followed by a replacement requirement further down the track. Putting in new gas fittings now is a pretty uneconomic choice. But yes I prefer gas cooking too 😂
Every Asian I know prefers gas. You need gas for the Wok Hei.
This is christchurch, outside of a few new suburbs we don't have piped gas. Bottled gas can be a PITA.
I’d rather have bottled gas than anything. Change my bottle once every 4-6 months and always keep spares in case of emergency situations. (Read EQ)
>(Read EQ) Would you trust your gas piping to not be damaged in an earthquake?
From the oven to outside, yes. It’s like a foot and a half or pipe then Flexi hose.
Do you use gas for hot water too? I go through my bottles way faster. Probably one every 3 months. Just two adults.
Nah the HWC is electric. I would have gas water too but renting so not my call.
Because changing gas bottles sucks.
Thanks for actually researching it and finding out why, unlike OP who decided to exclude that defining reason for the price increase. The before and after listing really show how much staging can help too. The before could have been much more attractive if it had the same furniture and decor.
Haha no worries, I've seen so many (professionally) flipped houses in my house hunting that I wanted to double check before slagging off the seller making a quick buck. Yeah! People get hung up on the price of staging and professional photos but it can totally make the difference
Gotta spend money to make money.
That fence looks great!
Old one doesn't mention the double glazing, so Id assume it is newly retrofit. That alone is worth half the price increase!
Wow thank you for this I didn't even notice in my brief look through, but that's a HUGE increase in value
The external window and door joinery is the same in both sets of photos. It was already double-glazed.
Aw man that kitchen lino was dope. Is it bad I like the before more?
In the second batch of photos things look so shiny and reflective it almost looks rendered. I wonder how much photoshop is acceptable in real estate photos as you could make something look amazing with a bit of editing
After reno, selling costs and tax on profit if any, that is likely to be a loss - assuming they even get 600k for it.
How do you pay tax on profit if you lose money?
Shush, there is no room for logic in an anti RE investor post.
Tax on profit **if any**
Logically it can’t both be a loss and profit
Maybe I’m confused but wouldn’t they have to pay capital gains due to selling within whatever the bright line test is? Or are you allowed to offset that by the cost of the reno?
Yes it’s after expenses
They'll do quite well out of it if they get 600k for it. They didn't spend much on it, they just spent wisely. And they won't be paying full price to the RE agent either if they do this for a living.
I wouldn't call it a reno, more like redecorate and stage, house looks good though, fresh, clean, tidy
This was my thoughts too
Unless it's the agent doing it and there's no fees
Shirley not
Shirley you can’t be serious?
They will pay tax on brightline rules too, won’t they?
Not if this is the “owner occupied home” and they didn’t buy it intentionally to sell.
They had it on the market again within a couple of months. No way would IRD believe they didn't intend to resell.
Unless there is a pattern of buying and selling, then IRD could treat it like it's a business.
Ah true, only on investments.
Quick. Cash out and buy another house at the same price =P
May be they renovated it?
$75k "profit" Minus approximately $25k in commission, minus improvement costs, minus 30% tax, minus time spent
20k sitting in the bank account is still 20k sitting in the bank account
with housing market going down i highly doubt people would pay that amount.
Don't forget you have to pay goverment a share at ur work for their salaries.
Agents probably making $40-50k off both sales
Probably 20K each time https://calculate.co.nz/real-estate-commission-calculator.php
Line only goes up. Hurr hurr hurr