This prompt guide is locked.
Access to Day 08 requires starting the series. One new prompt unlocks every 24 hours.
Renovation PotentialCheck.
The numbers on a renovator’s delight only work if the renovation budget is real. This prompt stress-tests scope, council constraints, comparable post-renovation sales, and whether the spend actually adds the value most buyers assume it will.
Why this matters
**Why this *matters***
The renovator’s delight is one of the most emotionally compelling property categories in Australia. Walk through a tired but structurally sound home in a good suburb and most buyers start mentally placing furniture and planning the kitchen before they’ve left the front door. The numbers are running in their head before the agent has finished their pitch.
The problem is that the numbers most buyers run at that point are not the real numbers. They are the aspirational numbers — the post-renovation comparable sales minus a rough renovation budget minus nothing for council approval delays, asbestos removal, builder availability, cost escalation, holding costs during the renovation period, or the gap between what the buyer thinks the renovation costs and what a licensed builder actually quotes.
The value-add calculation only works when the renovation cost, the holding cost, the contingency, the selling cost, and the post-renovation value are all honest. This prompt forces you to run all of them before you make an offer on anything.
“The renovation adds value in the imagination before the quotes come in.
What you're building
A renovation potential assessment covering scope reality check against your described intent, council and planning constraints for your state and property type, a value-add calculation using honest inputs, renovation risks specific to the property era and type, a pre-purchase due diligence checklist for a renovation property, and an honest assessment of whether the numbers support the purchase at the asking price.
Claude (free tier works). Your property details, the renovation scope you have in mind, your renovation budget estimate, and the post-renovation sales you have identified in the suburb.
Stress-test the renovation.Run the numbers before you run the emotion.
The only reliable renovation budget comes from a licensed builder’s quote after a thorough inspection. The general estimates in this prompt are a planning guide. Before you sign a contract on a renovation property, get at least one formal builder’s quote. The gap between your mental budget and the first quote is usually the most important number in the whole analysis.
Day 08 prompt
Renovation Potential
You are an Australian property research assistant helping a buyer evaluate the renovation potential of a property before purchase. The goal is to stress-test the numbers honestly — not to validate a decision already made. PROPERTY DETAILS: - Address or suburb and state: [details] - Asking price or price guide: $[amount] - Property type: [house / townhouse / unit] - Configuration: [bedrooms, bathrooms, land size] - Approximate year built: [year or era if known] - Current condition as described or observed: [describe what you know — original condition, partially renovated, structural issues visible, etc.] RENOVATION INTENT: - What I am planning to do: [cosmetic only — paint, floors, kitchen, bathroom / structural — walls, extensions, additions / full renovation / knockdown rebuild / I'm not sure yet] - My renovation budget estimate: $[amount or 'I don't have one yet'] - I plan to: [live in it while renovating / rent it while renovating / leave it vacant and renovate before moving in] - Target end state: [describe what the property should look like when renovation is complete] MARKET CONTEXT: - Post-renovation comparable sales I am aware of: [$X for [description], $X for [description] or 'I haven't researched this yet'] - My target sell or hold decision: [sell after renovation / hold as investment / hold as owner-occupier] Return a renovation potential assessment with these 6 sections: ## 1. RENOVATION SCOPE REALITY CHECK Based on what I have described, assess: - Whether my described scope is realistic for the property type, era, and condition - The most common hidden cost categories for this type of renovation in Australia: asbestos testing and removal for pre-1990 properties, rewiring, replumbing, rising damp, termite damage, underpinning, council permit costs - A realistic renovation cost range for my described scope — note this is a general estimate, not a quote. Provide low, mid, and high estimates based on the scope I described. - The renovation cost I should budget for contingency: minimum 20% above the mid estimate for a managed renovation, 30–40% for a DIY or first-time renovation - Flag: the only reliable renovation budget comes from a licensed builder's quote after a thorough inspection. General estimates at this stage should be treated as a planning guide only. ## 2. COUNCIL AND PLANNING CONSTRAINTS For my property type, state, and likely scope, flag the following: - Likely council planning permit requirements for my described renovation scope - Whether my suburb or property type is likely to have heritage overlay constraints that restrict what I can do - Typical timeframe for planning permits in my state: what this means for my renovation timeline - Flag: council requirements and heritage overlays require confirmation from the relevant council planning department before signing a contract ## 3. THE VALUE-ADD CALCULATION This is the critical test. Work through the following: - Post-renovation comparable sales: based on what I have provided or on general knowledge for this suburb and property type, what does a renovated property of similar configuration typically sell for? - Renovation value-add equation: [asking price + renovation cost + holding costs + selling costs] versus [post-renovation comparable sales value] - Does the renovation add more in value than it costs — and by how much? - The renovation margin: what margin am I building in to this deal? Is it enough to justify the risk, time, and complexity? - Break-even point: at what renovation cost does this deal stop making financial sense? - Flag: this analysis is based on assumptions. The only reliable post-renovation value estimate comes from a licensed valuer who has assessed comparable sales. Do not rely on an agent's projection. ## 4. RENOVATION RISKS SPECIFIC TO THIS PROPERTY Based on the property type, era, and condition I described, flag the most likely renovation risks: - Asbestos: pre-1990 properties in Australia commonly contain asbestos in walls, ceilings, floor tiles, and eaves. Testing and licensed removal is expensive and adds time. - Termite damage: structural implications, extent of damage not visible without opening walls - Heritage constraints: what you can and cannot change - Neighbouring property implications: boundary issues, shared walls, right of light - Rental income during renovation: can I rent it, and what does vacancy cost me? - Builder availability and timeline: in the current market, quote to completion timelines and builder reliability risk ## 5. WHAT I SHOULD DO BEFORE I SIGN The five due diligence steps specific to a renovation property that I must complete before signing a contract: 1. [specific to my scope and property type] 2. [specific to my scope and property type] 3. [specific to my scope and property type] 4. [specific to my scope and property type] 5. [specific to my scope and property type] ## 6. THE HONEST ASSESSMENT Based on everything above: does this renovation appear to stack up on the numbers, or does it rely on assumptions that are optimistic? What is the single biggest risk to this renovation making financial sense? What would have to be true for this to work well, and what would have to go wrong for it to be a loss? --- Educational analysis only. Not financial, legal, or construction advice. Renovation costs vary significantly by location, contractor, scope, and hidden defects. Consult a licensed builder, quantity surveyor, and your solicitor before committing to any renovation purchase.
The asbestos budget nobody included.
In one illustrative scenario, a buyer found a 1960s weatherboard in Melbourne’s inner north for $920,000. She budgeted $180,000 for a full renovation to bring it to the standard of comparable renovated properties selling for $1.2 million. The margin looked workable on paper.
She used the asbestos findings from the building report as a basis to negotiate a price reduction with the vendor. The revised calculation produced a workable margin. Without the pre-purchase analysis, she might have proceeded at the original price and discovered the gap during the renovation.
Your first run is fine. Your fifth is sharp.
Get a real quote before you sign
Use the prompt output as a budget framework, then get one real quote from a licensed builder before you exchange contracts. The quote does not have to be a full scope — a preliminary site inspection and rough order of magnitude cost is enough to confirm whether the budget is realistic.
Research post-renovation comparables yourself
Pull the actual sold results for renovated properties of similar configuration in the same suburb from the last 6 months. Do not use the agent’s estimate of post-renovation value. Use what buyers have actually paid for finished products.
Model the hold period realistically
If the renovation takes 6 months, you are carrying the purchase price loan, rates, insurance, and no rental income for that period. Include this in your total cost calculation.
Save this analysis alongside your Day 01 property analysis. The renovation potential check is a layer on top of the base property analysis — both together tell the full story.
What it still gets wrong.
It cannot quote a builder
The renovation cost estimates in this prompt are general ranges based on property era and scope. Only a licensed builder who has inspected the property can give you a reliable cost estimate.
Council requirements are local
Planning permit requirements, heritage overlays, and setback rules vary by council and by property. The prompt flags categories to investigate. Your council planning department confirms what applies to your specific property.
Builder availability is market-specific
In some Australian markets, licensed builders are booked 6–12 months in advance. The renovation timeline in this analysis assumes you can engage a builder within a reasonable period. In a tight labour market, that assumption can add significant holding cost.
The renovation might reveal more than expected
Opening walls is the moment of truth in any renovation. What the building inspection didn’t see — termite damage behind linings, rising damp under floors, deteriorated structural members — may not be known until demolition begins. Budget for it before you start.
How this stacks.
Day 08 stress-tests the renovation case. Day 01 runs the base property analysis before you consider the renovation potential. Day 22 interprets the building and pest report that will surface the hidden defects. Together they form the complete pre-purchase analysis for a renovation property.
Before you make an offer on a renovator.
You’ll have a realistic renovation budget, a value-add calculation based on actual comparables, and a list of costs you hadn’t included.
You’ll know whether the margin is real or aspirational. You’ll know the hidden cost categories most buyers miss. You’ll have a builder quote to confirm or challenge the budget before you sign. And you’ll have made a deliberate decision about the renovation based on numbers you can defend — not a vision you fell in love with at the inspection.
Apartment red flags
Apartment and unit strata risk scanner · high-density policy signals
Read Day 09 ↗