Forum Replies Created
Mon 16th July
-Got started today!
-took out most of the plants in the front yard, some big ones needing a chainsaw are still standing.
-went to tip to drop a trailer load, but they closed at 4pm, and I was 40min late. Bummer.
So first job tomorrow is back to the tip. Then more ripping out plants, mulching etc.BTW, I hate agapanthus.
Sunday 15th July
Starting work tomorrow (Monday) morning, on the garden only for now. Tools loaded, trailer ready.Excitement.
Hi everyone.
Great points raised about asbestos. Nasty stuff. I have dealt with it a little, and was very careful in my handling of it, full protective gear, hosed everything down to stop dust, wrapped it all it plastic etc. Yuck. Not fun.
And asbestos is just one of the many hazards in the building industry. I guess that could be one reason they have made laws harder for owner builders.
Personally, I have been a very close witness to 2 very serious workplace accidents, so I have seen how easily things can go wrong, even when you are trying to be safe.
So I would say to everyone reading this who is considering doing building work , to think carefully before deciding to DIY. It is not just a case of "Can you do the work", and "Can you save money". There is a very real safety consideration also.
So if you are thinking of doing a reno or similar, think carefully before deciding.
Not saying you have to be a tradesperson either, but you should at least have a pretty good idea of practical things.To wrap my OH&S blurb, here is a list of common injuries and hazards in building, in no particular order, to get you thinking SAFETY!!! Most of them have happened to me, or the bloke next to me:
Splinters, cuts, grazes, dust in eyes, sore back, neck, shoulders, twisted ankles, bruises – all too many to count.
Power Tools: Drills into fingers and hands, twisted wrist, fat lip from drill spinning out of control.
Power saws into boots, fingers etc. Also cut through power cord. Wood dust in eyes many times.
Router – along mates finger.
Power Planer – on TAFE teacher's fingers.
Nail Guns- don't even go there.
Angle grinder – sparks in eyes (even with safety glasses), burns to arms, legs, neck.
Welder – welders flash, radiation burns to legs, mate caught his trousers on fire.
Hand Tools: Hammers-on fingers, heads etc.
Chisels into hands, into forehead (that was not me!!!)Other hazards- tripping, electrocution, falling from ladders, off roof etc, rubble on floor, falling objects (especially during demolition), hazardous substances (some paints, heavy fumes, acids, alkalines eg cement,) nails protruding, slippery muddy environments, exposure to weather eg sunburn, loud noises ie hearing damage.
And plenty more I am sure. So there is the OHS lesson for everyone. Now back to the fun?? It all starts Monday.
Just realised I spelt McKnight wrong in the above post. Sorry Steve.
Tues 10th July
What a day.
-Early access denied, BUT they said we can work on the garden, just not on the house. OK with us.
-They offered to bring settlement forward, but based on lenders performance so far, we think best not to rock the boat. Leave settlement as August 1st
-So I contacted vendor directly to arrange what time I will start work on garden, and during conversation she mentioned removing the spa. SHOCK!
Apparently she had told agent to make it very clear to all buyers that spa does not come with house.
So, called solicitor to double check contract- nothing specific about spa.
Me: "isn't it part of fixtures & fittings?"
Them: "Probably not"
So after slightly recovering from initial shock, and realizing that it was probably not worth making a fight about this, I was worried that there may be pipes coming up through the deck to the spa, and that it would leave quite a mess of the deck when removed. Called owner again and she said: "No, no pipes. It just sits on the deck and we fill it with a hose when we use it."
Ok, no problem there, I hope.
So called agent and explained my disapointment at not being told about the spa. He explained his disapointment at me having a go at him, said he told everyone about the spa etc… Glad I got that off my chest!!So Lesson Learned: ask specifically whether things like spa's are included in sale, and list them in contract if they are. Guess I should have already known that…. but heat of the moment, signing contract….
Where do we stand now? Although disappointed, we are still confident that we can find another way to make good use of the extra space on the deck, and still make that area a strong selling point of the house. We intend to create a solution to this problem, and to reap a profit in the process.
The good news is that I start work on the garden on Monday 16th July… but all plans subject to change without notice!!!
Almost forgot, a mate gave me brand new door handles, soap dish, towel rail, TR holder that he had left over from another job, so just saved at about $300 off the reno cost. Nice stuff too, better than I would buy!!
Hi crashy
crashy wrote:If I was a builder, I would be hiring myself out instead of doing reno work…….especially if the reno work is all taxed profit. yeah I know…..youre not registered…..Once registered I may well hire out to others to increase cashflow, but this is not my primary objective. My goal is to be a property investor, not to be a builder. If I build for myself I am in control of most of the decision making. If I build for others they are the boss and I lose much control. Trying to please fussy clients can be hard for a builder.
crashy wrote:..but even on wages you would be better off than doing reno work.I am certainly hoping that I will make more $ from reno work than from wages. It is a risk though, so time will tell.
crashy wrote:are you a foreigner?No, not a foreigner.
crashy wrote:Your qualification is a major ommition in the details thus far! Whats the rest of the story?Sorry if I misled anyone by not mentioning this earlier. I was trying to mostly talk about this particular deal, not about my life story in general. But to make sure everyone knows where I am coming from, here is a summary of me:
Jason Grace, 29yrs, Male, married 9.5years, 4 kids, live in Berwick Vic.
Education: VCE, BA Biblical Studies, Cert 4 in General Construction- Carpentry
Industry Experience: 1 year builders laborer (2001), 3 year Apprenticeship (normally 4 years, but got early release)(2002-2004), 2.5 years qualified (2005-present)
Have experience in high rise apartments, 2-3 story residential, mega rich residential, factories/wharehouse & showrooms. Some experience in "normal" residential housing, but not too much. Also done a few decks, pergolas etc. Did a whole kitchen/laundry/powder room reno for mum&dad last Christmas which was great experience.
Investing Experience: Have bought my own home, 2 rentals, and now this reno.
Have read quite a lot of property investing books.
Attended a Development seminar with Martin Ayles from Adelaide a year or 2 ago(hosted by Steve McNight).
Attended the Steve McNight seminar in Melbourne in May 2007 called "How to find, finance, and buy a property bargain in 28 days". Then 2 weeks later bought the current reno project and started this thread.That's all that springs to mind right now. Any other questions please feel free to ask.
Hi all
Re being a builder:
In Vic there have been law changes in the last couple of years which mean that any work with a combined market value of over $5k requires a building permit, and some things less than 5k still need a permit eg any restumping, anything with a roof etc.
Anything over $12k value is meant to be covered by Builders Warranty Insurance.You can apply to do work as an owner builder, but there are limits to how many jobs you can do – I think about one permit per person every 2-3 years, but could be wrong on that.
Otherwise all work over $5k is meant to be done by a Registered Building Practitioner -ie a builder. And builders have to provide Warranty Insurance for 6.5 years on structural work, and 2 years (I think) on other work.
Lots of people either don't know or don't care about these laws and keep doing all sorts of things themselves without permits. I have even done some things without permits for family etc. You can get away with it, but because we plan to do a lot of renos, doing it as a business, we want to do things legitimately and not illegally.As for getting registered, I am a qualified carpenter with 7 years industry experience. I am applying for something called a "Limited Registration" which means I am allowed to do only certain types of work. For me that will be Carpentry, Kitchen & Bathrooms, Garages & Carports, Landscape Structures, and Miscellaneous (painting, tiling etc). After I have had a Limited Registration for a couple of years I should be able to apply for an Unlimited Registration which would allow me to build from scratch, up to 3 stories high.
If anyone is getting work done on your house, it is wise to check that all your trades are Registered Building Practioners (RBP), otherwise there is a good chance their work is not insured, so if something goes wrong YOU may be liable.
Of course, this whole process adds quite a cost to getting any building work done, which is why a lot of people just do what they like and don't tell anyone. But for me, this is not the smartest thing to do in the long term.Also, I just got back from the monthly Investors Network Meeting organized by Troy n Bec. It was awesome. Any serious newbies and most experienced investors should try to get to these meetings. You will learn heaps. Details here http://troynbec.com/home/index.php?option=com_content&task=view&id=20&Itemid=44
Thanks to those who posted. Keep it up.
Hi littleguy
I don't know about SA, but in Vic you really cannot do it. The State Revenue Office would see it as 2 separate sales – 1 at 180k, and other at 195k. You would have to pay stamp duty on 180k, and the next buyer would pay stamp duty on 195k. This certainly takes the fun out of thingsBut if you call a local solicitor who is good with property, they will know the SA laws for sure. Maybe you will be lucky.
Either way, you have bought at bargain price, so you should be able to find a profit in the deal somehow. Good luckSun 8th July
Not much happened the last couple of days. We are expecting to hear tomorrow (Mon) if we can have early access to start the work. If so then we should get keys on Fri 13th. If not then settlement is Aug 1st.I have decided to apply to become a registered builder because any building works worth more than $5k are supposed to be done by a registered builder. We will be ok for our first deal, but as we hope to do many more in future it will be best to be registered. The application is fairly heavy duty so I will be working on that flat out for the next few weeks.
Wed 4th July and Thur 5th July
-got another quote on carpet and floating floor
-another quote on plans and permit for carport -$570 for both, but i have to supply copy of house plans from council – costs $82.50 to get council plans. So $652.50 total. Sounds pretty cheap to me. BargainTeus 3rd July
-asked mortgage broker to change loan from 95%LVR to 90%. This will reduce mortgage insurace from about $4630 to about $3030. We don't have enough cash to do the deal at 80%, but at least $3030 is a lot better than $4630.
-got a quote from the draftsman to have plans drawn for the carport. He said about $600 for plans, plus another $400-$600 for the building inspector/surveyor to do the permit. Lots of money for 2 posts and 3 rafters.Hi mum2five
Yes, very relieved about loan. Fingers crossed on early access. The vendor has already moved out most of the furniture and bought elsewhere. They are really just camping at the house, so hopefully they will be glad to get out of it a bit sooner.Mon 2nd July
-Loan is approved unconditionally. At last!
-asked mortgage broker about reducing mortgage insurance
-asked solicitor to request early access to the property to start work.
-called a draftsman to draw plans for carport
-inquired about 2 more housesHi adprop
could you elaborate on exit strategies? What ideas have you used, or would you use??Hi
In regards to trying to avoid the stamp duty, I have asked a couple of solicitors about this, and basically the State Revenue Office has a very clear statement that if a property is on-sold, or transfered in any way to another party for a higher price, then they see it as 2 separate sales and will charge stamp duty to both of the buyers. This is the same if you use "And/or nominee" clause, or call option contract. Basically they won't let you aviod the stamp duty. You have to pay it for your purchase price, and the next guy has to pay it for his full purchase price.
I am in Victoria though, so it might be different in NSW or other states.Hi craigcass
Just to let you in on a secret i (flic) am 28 and jase is 29, we also have 4 kids, our youngest is the cutie in our photo (now 9 months). So if we can do it then I'm sure lots of others can, including you.Its never too late.
Flic
Sat 30th June
-went to an auction for market research purposesFri 29th June
-received word that the valuation came back ok, so just waiting on the rubber stamp for the loan.
-made a list of other houses to inspect tomorrow. Keeping a close eye on the market!Hi Richard
We have told our broker. There is a $1500 fee to end the loan in the first year, plus a loan startup fee, this fee, that fee…
We were a little surprised by how much all the fees came to, but still confident on a good overall result. The biggest loan cost is mortgage insurance. We applied for 95%lvr and the LMI is almost $5000. We were expecting about $2000. We are going to see how much it reduces if we only borrow 85% or 90%. We don't have quite enough to do 80%, but after learning how much LMI is, we will try to do future deals at 80%.Hi Jaffa
What, you don't like the green??!!!! I was thinking about a brown, or reddy brown timber color, but tossing around the idea of charcoal or grey. Render will probly be a classic cream color, fascia & gutter probly black, roof & driveway charcoal, pergola roof to match render, pergola posts black, window frames black.
Inside I'm thinking white ceilings, almost white walls, arcs & skirts & doors off-white gloss. Timber floors & dark grey carpet for contrast & color.
BUT….. I am a male and not naturally gifted in color selection, so quite open to advice!! My ideas have mostly come from looking at other modern looking houses and seeing what is popular in them. I am trying to do what is most popular, not what I personally like.Thanks for replies. Keep 'em coming.
Thur 28th June
-called RE Agent to keep in the loop. He said he took the valuer through the house yesterday, so final loan approval should be close.
-Called mortgage broker to tell him valuer had been through.
-talked to boss again and reached a mutually satisfying agreementDoes anyone have an idea for what colour to repaint the deck????
Wed 27th June
-went to solicitor to drop off some papers.A question for all who wish to answer: In the bathroom at this house we are thinking of putting a row of border tiles around the bath. We would like to choose a color/ style that makes the bathroom look less "peachy".
Any ideas on color of border tiles?
Or any better ideas for bathroom.
I will put up more photos of bathroom on the link below to give a better idea of the whole room.
http://www.flickr.com/photos/9273576@N06/Just a note on our mortgage broker. We have never had any easy loans, always complicated, usually by me (flic) being pregnant or on maternity leave. However our mortgage broker has been awesome. I fully believe in giving credit where credit is due. So i will always send thankyous (flowers, chocolates, fruit baskets) to those who help during aquisition of a property, establishing a relationship for next time.
For example:
I called our mortgage broker whilst on holidays in remote NT as we wanted to purchase a property there whilst we were away. He was able to organise this from victoria. By no means was this an easy loan due to the remoteness of the location (does anyone know where borroloola is?!?). He tried every avenue for us to find a way to make it work. He has persisted with our loans where most other mortgage brokers would have walked away from.
He is on the ball with this loan but although we are a valued customer, we realise we aren't his only customers.Mon 25th June
-STILL NO unconditional loan approval!! And here is the reason why: after chasing up the mortgage broker a couple of time, and sending even more last minute forms to the lender, and after being told that "this is the last thing we need for full approval", I still had not heard by 4pm, so I called and 4:15pm heard back that the lender had not ordered the valuation to be done until this morning, so it has obviously not been done yet, so we have conditional approval subject to a valuation of the property.
What this means: We have to apply for another extension on the finance clause, and if the vendor decided not give us the extension they could sell the house to someone else. This would be bad because I really think we are going to make a profit here.
So I explained this to my solicitor, and he suggested to pay the deposit anyway, and he would explain to the vendors solicitor that we need more time but we have paid the deposit "in good faith". This should put the vendors mind at ease. And if something strange does happen with the valuation, we can still get the deposit back.
-so I also paid the deposit and asked agent about some other properties.Things I learned today:
-it ALWAYS pays to make a quick phone call to brokers, lenders, whoever and ask how things are going. This puts my file back to the top of the pile and gets it seen to a few minutes or hours earlier than it would have otherwise. These minutes and hours make a HUGE difference to how many days it takes to get things done. In short, I am the investor, so I need to maintain control of the entire investing process, and not just trust that others will be prompt.
-if I had not been standing in the agents office asking questions, I would not have heard about a potential development deal that he has not even listed yet.Some more photos are uploaded now, so have a look!
I have some more photos, so if you want to see more detail on something, ask me and I will try to upload more if I have the right ones.
