THE HOT SEAT
What was your first job?
I grew up in Sydney’s western suburbs in a family that
struggled financially after my parents divorced. I was
removed from school at the start of year 11 to work in
a retail shop my mother bought that wasn’t making
money. I managed the shop solo while my mother
found other work that paid the bills. I was just 17, and
there were many invaluable life lessons I learnt in
those two years before I branched out on my own.What’s the best money advice
you’ve ever received?
A penny saved is a penny earned. I see that all the time
in the renovating game. People fritter away money on
improvements or materials that aren’t necessary and do
little to lift the value of their home. Or they pay way more
for the property than it’s worth because they haven’t done
their due diligence. That extra $50,000 they overspent
on the purchase is profit straight down the drain.What’s the best investment
decision you’ve ever made?
The easiest money I’ve ever made was on a property deal
very early on in my renovation journey, when I had little
money but loads of motivation. I came across a waterfront
site in Sydney’s Balmain with an asking price of $2.51
million. I could see massive potential, as the site could be
subdivided and then onsold with DA approval. A friend
agreed he’d put up the money and I’d put in all the work.
We pulled it off and walked away with $750,000 clear
profit, after all expenses. We split the net profit 50/50.What is the worst investment
decision you’ve ever made?
Buying my first home at the age of 21 on a major road
(six lanes) in Sydney. I realised the big mistake I’d made
once I moved in. I decided to get out ASAP, so I painted,
ripped up the carpet and cleaned up the garden. I still
managed to make a modest profit. This mistake
kickstarted my interest in renovating and is the reason
I often refer to myself as the “accidental renovator”.What is your favourite thing to
splurge on?
I’ve always loved classic cars, and on a bit of whim I
flew to Nebraska, in the US, when I heard about a hugeclassic car auction. I came back with an unrenovated
1956 Chevrolet Bel Air. I named her Mildred in honour
of the former owner back in the ‘50s. I got her
renovated in Sydney, keeping all of her with original
parts. She’s the only one of her type in Australia,
owes me $160,000 and is definitely not a renovating
for profit project! She is my favourite possession.If you had $10,000 where would
you invest it?
Well, I certainly know how far you can stretch $10,000
on a modest, highly strategic cosmetic reno, so if I
had a property in need of a revamp I’d invest it there.
If I had no property I’d invest that $10,000 in education,
because I know from personal experience the return
is at least tenfold.What would you do if you only had
$50 left in your bank account?
Probably panic.Do you intend to leave an
inheritance?
I didn’t have the easiest start in life and the most
important person in mine is my 11-year-old daughter Milan.
I’ve made sure she is cushioned from financial hardship,
but it’s important to me she grows up with the right work
ethic and outlook on life. I try to teach her the value of
money and that you have to work for it. I don’t want her
to assume she was born with a silver spoon in her mouth.Can you still make money from
flipping in the current market?
Absolutely. I’ve made money in every property cycle
and I’ve been renovating for 25-plus years. The rules
never change really. It’s all about adapting to the market
you’re operating in and always doing your due diligence.
That said, if you have the finances to buy and hold,
that’s always the preferred option.Finish this sentence:
Money makes...
... life easier. If every day is a financial struggle, it’s hard
to have peace of mind. I learnt that early on in life. Having
loads of money was never my goal: financial freedom
was always the end game. And I feel blessed I got there.“Loads of money was never
my goal: financial freedom
was the end game”
T
Cherie
Barber
Founder and CEO
of Renovating for
Profit, a company
that teaches people
how to buy and
renovate properties
for a profit. Barber
is a TV renovator
on Network 10’s
The Living Room, a
regular on Channel
9’s To d ay E x tr a,
a weekly radio
presenter on 2UE,
and star of her own
American renovating
show, 5 Day Flip,
currently airing
on 9Life.