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Didn't work.
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http://www.flickr.com/photos/9273576@N06/
Some inside photos will be up soonSome Photos at last. Lets see if this works.
Front of House:Fri 22nd June
-had another talk to my boss about getting the reno done. It seems we might be getting closer to a workable solution.I have some photos now to share, but not sure how to do it. If someone could tell me how to put the photos here on this post I will try to put some up very soon.
Crashy, I love tools. Got a whole van full. I probly will buy a gurnie, but I already wore out a $60 one so I might try to get one a bit better. It will do a lot of work.
Also, does anyone have experience with Wagner airless spayers? I was thinking it might save me lots of time to get a mid or low range model to help with the painting. Any ideas?Thurs 21st June
-got conditional approval on the loan!!! Yesssss!!! Very excited (or scared silly, not sure which!)
The conditions are a valuation and 2more group certificates as the ATO tax return printouts were apparently not good enough.
So we should have not probs on those 2 conditions.
-spoke to a painter about spray painting the roof. He said if I pressure hose it down and do the small amount of re-pointing needed, he will tell me what paint to buy (he said about $600) and he will spray sealer and 2 top coats for $500. So total including Gurnie hire should be well under $1500.Wed 20th June
-yet more papers for the loan.
-followed up solicitorThanks everyone for responding. I am getting a lot of good ideas from you all.
In regards to the last few posts, the $25k reno that we are planning does not include much labor costs. Most work will be done ourselves. The $25k budget is based on prices that I can get "off the shelf" with minimum of shopping around. When I start buying materials I will be looking much harder to save $, looking at ebay, auctions etc.About the purchase price: This property previously sold for $250k, and fell through on finance. Our offer was $242k so I think we at least got a bit of a bargain. I mentioned our price to a different agent last weekend, and his response was "No way, thats too cheap. You got it way too cheap."
Keep it comingTeus 19th June
-talked to Mortgage broker and RE agent all about getting the loan approved. Jumping through hoops for lender. Having a junior loan assessor working on our case is a very large nuisance.
Not much else to do for now except wait for loan and keep managing application process.
Sat 16th June
-went to 5 house inspections to keep my head in the market. Learned some helpful things about the area. Still confident on our end value.Mon 18th June
-got quote for carport – $4702- but I think I can do better.
-called 2 agents to ask about sold properties nearby
-Mortgage broker said loan application will take another week so I asked our solicitor to send a request for an extension of the finance clause.
-asked my boss if I could take 4 weeks leave without pay, then come back to work. He said probably not, but he would think about it.Oops. Just realised I put the wrong date on the last post. Should have been 14th June.
Fri 15th June (got it right this time)
-chased up more papers for mortgage broker. He says our loan application has landed in the hands of a very inexperienced loan analyst at the lenders end. This will slow things down – hopefully not too much.
-told my boss about the upcoming reno and asked if I could cut work backto 3 days per week to get the reno done. He said no. He was nice about it and all that. Said I can stay as long as I need to, wished me luck when I go, said he was hoping I would be around for longer; but no, it would cause too many problems for me to go part time.
-also talked to the carport quote guy. He will give me the quote on Monday, but it looks like around $5,500. I was hoping for $3,500.
-went to a discount plumbing store to check some prices.Thurs 7th June
-called conveyancer to to ask some questions and inform them of some details
-continued some detailed costings and comparisons
-had another inspection of the house to get a quote for a carport and to measure all the internal rooms for our estimating purposes.
-asked the agent for his opinion on what we have planned etc.Hi Marc
With the profits I intend to put aside what I need for tax, and to re-invest the rest into another deal, as quickly as I can.
I hope that I would do more than 2 projects like this in a year. I would like to become a professional property investor, and I think I can get started through renovations, though I would like to begin some small developments as soon as possible also.
Within 1-2 years I would like to use renovations only as part of bigger deals, but to focus on developments for lump-sum gains, and then to build a positive cashflow portfolio with some of those lump-sum amounts.Wed 13th June
-called the mortgage broker to touch base
-Chased up some more docs for the loan application
– called a solicitor to ask some questionsNot much done today. Work all day, work function at night. Work is such a big barrier to being able to focus on investing……
Saima, thanks for comments. We have considered holding for 12-18months, and if we cannot achieve our required sale price then that is probly what we will do. But a quick sale is our preferred outcome, so we will work hard toward that goal.
oops. sort of messed up that whole "quoting the other person thing" didn't I?
sorryTeus 12th June
-called insurance company to iron out some problems with the policy they sent us
-called an agent to ask about some other properties in the area
-started jotting ideas for writing a business plan (not directly related to this property I know, but still part of the journey I am on)
-went to a gathering of property investors, heard some great ideas. Thanks to Troy n Bec for organizing a top night.foundation wrote:Jase and Flic wrote:It still pays to assess your projected sale price against others in that price range. Ultimately, your house will be competing for buyers against properties such as these:Houses:
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104002398
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103984190
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103966164Townhouses:
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103878775
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103978494Hi Foundation
Thanks for finding those for me. I reckon our final product will be equal or better than all the above houses, and the townhouses are probably better than our product, but they are for a slightly different target market, so really I am just pleased to see asking prices of over $300k in the area. It means our product should also have a great chance of being in that over $300k range.Mon 11th June
-Itemised the tasks to be done and estimated time needed for each- Total estimate 53.5days work for 1 person, not counting the hired trades eg electrician.
-arranged the list of jobs into an approximate order
-Did some detailed costings on certain jobs to see which way is cheaper.Hi Marc, good questions.
"Is this the estimated gross or nett profit? – Gross, ie before tax
"what are fully renovated similar properties selling for in the immediate area?" – Nicely done properties, inside and out $325-$335k, only inside renovated High $200s
"is your estimated sell price likely to be the same as the others?" -our estimated sale price is $308k, which I think is very conservative, perhaps too conservative, but as we are new to renos, I don't want too expect too much. I think our final product will be- Inside, very good. Outside Excellent. Our main drawback may be that we probly cannot afford a carport, though we are getting a quote, so maybe.
"what are brand new similar houses selling for in the immediate area?" – I have not actually seen any new ones
"Don't forget that the profit will be liable for tax on 100% of the cap gain if you sell within 12 months" – yes, all of the profit is taxable
"Have the buying and selling costs, plus…been factored into the gross profit?" – Yes, we did an expected scenario, then a best and worst case, and then looked at what happened if we had to hold for 12-18months and rent it out. This is not what we want, but would still not lose money, just not make too much
"With an estimated profit of $15,726.00 … the nett result might be less than leaving the $56k in a high interest bearing deposit account" –
$15k profit for $56k down is 26.8% over 4-6 months. If we do 2 in a year that is 53.6% gross return on investment.
If I earn profit from a term deposit or similar, the entire profit will be taxable, so no different in regards to tax.
I have not seen any "high interest bearing deposit accounts" that earn anything like 53.6%p/a. Some share funds probly do, but right now I am concentrating on learning about property investing. Maybe I'll look at shares later.Keep those replies coming everyone
Thanks Paul
It helps a lot. When I speak to a solicitor to get a cotract drawn up, at least I will have a little bit better idea what questions to ask him/her. I had not heard of the "Assignment clause" until now, but it sounds like just what I might need.HI Jaffa
The loan application is still going, so I will put up those details when the loan is approved and the contract is unconditional. It will probly be about another week.
The land size is about 590m i think. No scope for development, so just a straight out reno.
We plan to have it on the market 2 months after settlement at the latest.
CheersSat 9th June
-Spent morning with business partner, signing trust deeds, company constitutions, minutes of meeting etc and then went and opened bank account for the new structure.-2hours sitting in bank, yay, fun.
-went to get prices on bricks and pavers
-went to tile shop for a browseHad planned to look at some more houses, but bank took longer than expected.
Crashy, thanks for reply. Do you buy actual render in bags, or just sand & cement mortar?
L.A Aussie wrote:Hi guys,
would be willing to put some projected numbers/budgets/time-frames etc on the thread for us to read. We may be able to help cut a few expensive corners on the new project for you.
I love this stuff.Hi LA.
I put more detail on the post in the "Value Adding" forum. I would love to hear you ideas, but best on the other thread so it is all together.I agree that the news items could be updated more often. But the new look is great.
Fri 8th June
-confirmed appointment with Lysaght for carport quote
-booked quote time with a painter to spray paint roof and driveway.
-visited electrical supplier for prices on downlights, power points, light switches etc.
-visited Good Guys for price on freestanding oven
-visited Solver Paints to ask about texture coating systems, paving paint, and prices.locco wrote:What are the rest of the houses facades like??? maybe just rendering the front with a 2 tone affect and a feature pergola or structure to break up the front and give it a visual wow!!
When looking from the front, the left side is painted white, right side not painted, rear of house painted purple and yellow with the heritage green deck.
I think rendering everything will cost too much. Need to repaint back and left side. Render front and small return. So then right side will be only thing not painted and will probly look weird.Does anyone know if you can just put a skim coat of sand & cement over bricks, just enough to fill mortar joints up to flush, then apply a roll on texture coat over that?? I think it would look almost like render, but maybe lots cheaper.
Anyone tried this??
