Thanks for the post – great thread!

I’m really interested in hearing some success stories for DIY works that have resulted in capital growth and/or increased rental yield.

I say this because I’ve just purchased a new PPOR, and am going develop some skills by attempting a very basic cosmetic reno. It’s a small 60’s three-floor walk up, and all it really needs is new paint on the walls/cieling (floors are fine – they were recently renovated with floating timber floorboards). The windows are old metal ones, and I was thinking about painting them, then removing the ugly vertical blinds, and replacing them with custom-fitted plantation shutters. Kitchen and bathroom are fine; just need some painting.

Once this is completed, I was thinking I’d use the skills and contacts I’ve made to then conduct a cosmetic reno on one of my IP’s. But this is where I come unstuck. I have an IP in greater western Sydney (St Marys area). It’s a very old top floor red brick apartment. Great bones but needs new paint (cheap and easy), new carpets, new kitchen, bathroom, and laundry, plus, new window coverings are needd. I think I’d be in for $20K plus. Problem is, I think it’d only gain me an additional yield of $20, maybe $30 pw. This means only $1560 revenue in one year. Sure, there’d be some great depreciable claims for tax, but with the property becoming so positively geared, I’m wary of doing to much work on it.

Thing is, the unit is in dire need of renovation. So it’s one of those ‘damned if I do; damned if I don’t’ things.

Any suggestions for me?

Thoughts are to try and do some of the works myself (painting). The place is actually floorboarded; it’s just the two bedrooms requiring new carpet. The real expense is kitchen/bathroom/laundry. I could maybe get away with just a tart-up (so instead of new cupboards, appliances, tiling, electrics, basins, sinks etc, could I get away with just: painting existing cupboards (chaging all the handles, knobs, spouts etc to be more modern), basic ‘extra large’ wall tiling (which I could do myself; see; extra-large tiles are cheaper and easier to do, with the imperfections less noticeable. As for the window coverings, perhaps the cheapest possible vertical blinds? Or maybe just new curtains?

Agree with all here.

Whilst I’ve had the fortune (and in all honesty, LUCK) during my first property purchase to apply with just one lender and have that lender approved, many new/young investors do get stung by this.

I’ve even had my lender, after pre-approving me, and then me saying ‘Actually, I might look at some other lender deals first’, ‘kindly’ remind me that I should not go and get pre-approvals with other lenders if I’m already out-to-market with him (effectively working his magic to ‘guarantee’ I’ll go with them!)

The process Derek recommends via use of a mortgage broker’s software is a good one. Remember, mortgage brokers work ‘for free’ to their clients (instead, taking a small cut of the deal with which ever lender you end up with).

Also can’t stress and agree enough that only make the pre-approval with the shortlisted lender you actually want to go with. If successful, you then need to act/work very quickly. This is easier for folks who have office jobs (or jobs where they are in front of a computer all day), because these days, most ‘processes’ within the purchase process can occur online/via email. Harder for those working outdoors/Not in front of a computer 9-5, as they have to do all of the work outside of 9-5 hours.