Hi all, there is a property that i’m interested to get for my PPOR, and then IP after the first year (yes gotta have that FHOG[happy3]), a little bit about the property, it sits on a generous land size (possiblility of dual occ), conveniently close to station and local shops. building size around 10×20
The only problem now is since the building is 60+ years old, and never undergo reno, i can tell straight away that it will need
1. re-stumping
2. re-wiring
3. bathroom makeover
4. join up kitchen n loungerooms to get some space.
5. Possible an extension to get another bedroom.
Now, since i’m no expert in reno, will it be too difficult to manage all of the above by myself?
Can i get a builder to quote on the job before i actually acuire the property? anyone can recommend one for inner melbourne area?
and finally will it be too risky as i’m afraid the reno list will just keep on growing, and i have reached the end of my finance.
Anyone wanted to share their first property purchase+reno
Sorry for the long post, i just trying to give you all as much details as i can. Thank you in advance.CheersWow, sounds like a pretty substantial project you’ve got on your hands, I’d say that you’re first step would be to set yourself a time/$ budget and work backwards from there.
Restumping can cost as much as $5000 (from memory)
Rewiring can be quite expensive, budget for a couple grand depending on the quality of the board and existing wiring.
Bathroom makeover can be as much as $10,000 for a full reno, less if you want a pure cosmetic freshen up.
Kitchen/Loungeroom joining ???? not sure whats involved here, could add some significant costs if its structural, less if its just removing non structural stuff & plaster.
Extension – how longs a piece of string, if you’re going to get a builder to do it, get them to quote, expanding outside the existing roofline can start to get pricey, you’ll need council approval, slab/stumps, plaster, electrical, windows, doors, all adds up.Lots of work, if you can’t do the work yourself then its going to cost you a pretty penny, but crunch the numbers, if it works for you as a PPOR or IP, then go for it.
D.
We just did first reno on first IP in 5 weeks. Took 2 people being there around 4/7 days. It’s a 3×1 on full block, about 35+ yrs.
If any of the walls are painted a dark or bold colour, use a cheap white undercoat to slap over the top before you use the colour you want. We did that and it meant only 2 coats on most walls.
If you have an especially dark space (like a hallway) use a lighter shade of the overall colour scheme.
We were so tempted to rip out the kitchen (panelled cheap arse wood) and bathroom cabinet, but I’m so glad we didn’t now. Just sand back, paint and use nice new handles – saves you thousands.
Tile paint is incredible stuff. If they are in good condition, save yourself the hassle of redoing.
You can use steel wool to get paint or flecking varnish off skirting (use a wet scourer in bad spots first), then a varnish in the wood tint and it creates an sharp, clean contrast to flooring and fresh painted walls.
If you’re painting over exposed brick inside, fill in any big holes first. We didn’t do that and it looks tacky.
Our whole reno cost about $4000 (inc petrol) and was mostly cosmetic. I’d say set up a rough budget, then add about another $2k for example.A building inspection should pick up most problems.
Add a clause to the contract allowing a qualified electrician to make an inspection for wiring. If it is that old then no doubt he will say it should be anyway.
Then based on the reports get quotes. You may want to think about renegotiating if it is a lot. Anyway – at least you will have some idea.
I will add – its all about securing the property first. As long as you have the correct clauses in your contract, you can worry about those things later.
Regards
JohnInspired Finance
(02) 9944 7776restumping, rewiring and other structural repairs rarely add any value to a house.
Cosmetic improvements do, like painting.
I agree that you are better off doing a minor makeover with tile paint and new door handles than magor structural works.
I would only consider an extra bedroom if it could be done by changing existing internal walls or the like…..
If you want to make money from renos you need to think like an investor, and not like a home owner.
Don’t bother trying to make the house perfect for you, simply give it a superficial makeover for the most value from the dollars you spend.
Research the meaning of the word “over-capitalising”…..
And remember that you can’t claim much of the initial renovation as a tax deduction, it is just added to the capital cost..
Also remember that you usually have to use cash to pay for this renovation. This cash may be better used to leverage into a second property.
Some things to consider.
I’ve done 3 – 4 reno’s in the past am still feeling burnt out from the effort, it will be about 4 times as much money and effort as you first envision….. be prepared for stress if you are goingh to go overboard.
Put your time and effort into getting the dual occ. permits and go from there!!!!
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