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I good stratergy to build wealth from the bottom up, is BUY, ADD VALUE, REFINANCE.
I'm with the student accomidation idea, buy a large house with lots of beds, renovate as a student house, communal kitchen, bathroom, maybe furnish the rooms (opp shop is enough), rent the rooms, and manage the house while at uni. You can then use the increased equity to repeat the process by borrowing equity, as your next deposit.
Your main concern is having an income to service the loan while at uni. You could try a positive geared property but , where do those exist?? some people can find them, but most are created?
Read as much on property as you can, try peter spamm for value adding!
Good Luck, set your sights high and you will always go far!!!
G'day lopetha
I'm on the same wavelenght as the others above, I think you need to consider all the little extras that aren't so obvious to start with. I've found that the more detail you go into each task you want to do the cost becomes more accurate, it can takes months to get all the detail together,. If you don't want to go into that much detail you need to be over the top on your estimates, ie tiles may cost you $20/m2 and a tiler $40 – $50/m2m, you may estimate $70/m2, but I would estimate $80 – $85/m2.
The best way I've found is to borrow books on DIY from the library to learn how to do the task, then you will know how to go about it, then you can price it.
The main things that get missed is the labour, I think you may be light on, get some quotes before you commit. Are you planning to do all the work your self or tradesmen all the way. ie cabnet maker for your benchestops, electrican for lights, new power points in kitchen. Most tradesmen will charge about $500/day $50/hr. I think your tiler, plumber and sparkie are far too light, most jobs take more than a day. What about hanging doors, painting and carpeting.
Unfortunatly there is no quick calulation for your reno's each is very different and will change as you go!
Good luck with it.
James, they are in Mackay and I think they do the cutting in Townsvilli then transport.
G'day James,
I'm about to buy my benches from a company "Sizewise" who cut the benches in a factory to your size then you glue them in.. I've worked out they are $400 to cut and shape them compared to a standard Bunning bench.Get your plan so detailed you know exactly how to do everything, that way your budget will mirror closely to the works. You sound like your right on track.
TIME, It always takes longer than you think, I sound like my DAD, but my dad was right! The bulk of the work is easy to estimate, but I find the finihsing takes the longest, For instance, I've just remove and replaced FC, putting the sheets up took 2men 1day 20hrs (about what I thought) and i thought if would take 3 x 1day to do the joints, but if took 2 men 3 days to do it, and there is still touch ups to do. Tradesment would take 1/2 as long, If you plan to do the work and can handel it taking longer. It can be good to get tradesmen over to quote the works and ask them how long they would take and with how many men.
Your budget sounds good, lookout for the little things, they add up, what about tools do you have extra money for them? or can you borrow it all.
It is difficult to estimate the resale prior tot the reno, use unit sales in adjacent suburbs up and down the coast. There is no rule of thumb,
Depending on what you what the increase in equity for, if you get a valuation paid by yourself you are more likely to get a good valuation compared to the banks, you can then request your bank to use the same company to value your home and then increase you r loan to use as a 2nd deposit and reno.
Good luck with it!!!
G'day racingdork,
I'm in your situation right now, I bought a high set queenslander, on a lean without a bathroom, old kitchen,termite damage, i'm living in the lounge, no windows and eating mircowave meals. I'm no builder just handy with timber.Where to start?
You need a budget, 50k will disapear very quickly, make your estimate detailed so you can build from it, it will get you thinking about those hidden things you miss, like fasteners, tools. You need a way of recording the reciepts when you have 11 friends grabing you stuff cheep that you need to pay back later.
You have to stick to the plan, don't add features as you go, use your budget as a guide to planing the works.
Try to estimate the time a task will take, add them up, and figure how much time you and your mates will give.
I've made a comitment to be finished in 6mths, that way I can have my life back and enjoy the new renovated house. I think if you streach it over 2 years if could be a long headacke, that everyone including yourself will be over.
Its good you've got a great crew around you, I've found some talk more than work! Cash in hand is allways a very good motivator.
I live with my girlfriend in the house, with dust and no backdoor, eating TV dinners and drinking beer. If not all bad, but, I don't suggest it, it could get ugly, we deal with it, and get on with it.
Do you have lots of time, I find I only realy use ¾ of your weekend, and you have to stop your soial life to an early Sat night (Sundays going to be a big day). Evenings are good for a while, but doesn't last.
I try to do the basic to get a good effect, ie a new kitchen, bathroom, but all budget brand. You need to be spcific about what your goal is, is it a dream home, on sell or rent out? Then get the best bang for your dollar. If its a rental go for basic, onsell go for designer look in budget brand. Try not to get emotional, it can kill the project.
Try to
Plan the work, Work the plan
Good luck with it!
