Hi guys thanks for viewing my sort of layman term kind of forum topics (",) again. The question i hold to all you reno and property investment gurus is : How to RENO in another state. I live in Sydney and the property im looking at is in a regional town, Its an old solid contruction 2 bedder (could be 3 possibly) 10 mins from the town centre. Its advertised for around $40,000 the only propblem is it needs alot of work both structurally and cosmetically for eg restumping, plastering new floorboards , plumbing and electrical etc. I mean after i do it up i cold have an average rent of $140-$150 approx market value. that would be a good return i guess if i budget right. The vendor is motivated and i think would drop the purchase price abit lower. Now is it worth the risk?
1 What are the pros and cons of renoing out of state
2 Should i hire contractors and rely on the their progress via email /phone
3 Should i have the site expected for structural damage/ pest inspection ( how much will it cost me)
4 Has anyone done a reno out of state, out of their view and just outsourced the labourers but managed the project themselvesIm really stuck guys these are only a few questions , please feel free to add anything else i should know, tax advantages, risks etc. Thanks for all the great ideas in advance.
G'day,
The June 2007 issue of Australian Property Investor has a profile on Maree Leach who's first investment was in Bernie, TAS – she lived in Coffs Harbour, NSW. Perhaps you could find some inspiration there?
Regards – Ben
Thanks for the info i actually have that issue , il go back and read it .
I'm trying to do regional interstate reno at the moment too. If you dealing with a country – it’s a sharp contrast with Sydney in communication standards! One thing I can tell you – forget about email! Fax is the best you can hope for. You will be lucky to get mobile connection occasionally. But your phone conversation wouldn’t have much of a value. You really need to talk to people face-to-face. I don’t really see anymore how I can complete the project without being there. My property is in booming town and getting traders is damn hard. There is so much new development – they only want to do new projects and they can choose what to do. I was waiting for 6 month to get a quote for bathroom! And I haven’t got it yet!The property was tenanted as PC+, so I didn’t worry much. But the tenant got bed and I evicted him. Now I’m really on the hurry and I just can’t get traders! I’m a trader myself and will go and do a big part of the work myself. But I need a builder, plumber and electric. I lost hope to get gyprocker/carpenter down there so I’m currently negotiating with traders in Sydney to go here and to do the work – I’ll have to pay premium price, plus flight, accommodation and meals. But at least I’ll get the work done.
If you can get a local builder great – at least you only have one person to manage. Unless you are prepared to spend a lot of time at the place getting the work done/supervising & running around after tradies — forget it.
An building & pest inspection are generally quite cheap <$1000 but well worth it if it convinces you one way or the other.
From the scope of the works you will probably pay more for the repairs than for the place itself (might be cheaper to flick a match and get a new one built/relocated).
i have flown to perth a couple of times to paint and recarpet flats i buy everything i need at "global warmers "and give the tools to my mum after…if i did the sums it would probably be smarter to work that many hours and send the money but i get a lot of time off from work
after working in fiji and looking at a number of construction jobs there i thought a good way to go would be to fly in a crew .
lock them in for ten hour days (yes pay the overtime ! it makes the trip worth while for you and them ) and give a week off at the end
in your case a nice feed and a plane ride home.
i would definately go there, take a LOT of detailed photos (print them on A4 ) and have materials delivered for day one
just because its a bit different to the usual "path of least resistance " it might not be a bad idea
good luckHey there …
Make ya offer … stick in a due diligence provision .. 14 working days …. see what you can do and what is achievable … if ya can't get there walk away from it …. consider the bukiding and pest checks as a general cost of investin … I'd rather burn a up to a grand and get it right, than scimp and pay a whole lot more
R
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