I have found two properties for sale,
one is $99,500 and the other is $79,000 renting for $135 and $130 respectively. The only problem is that they are both fibro. Does the rather high return on investment outweigh the fibro problem?
thanks.
PeterFibro houses are usually priced lower in the market as it is not an attractive look. It is not a first choice for many investors are it is prone to tenants knocking holes in it, even by accident, say with a cricket ball or car door.
You should bargain them down to as cheap as you can get and investigate the costs involved with getting the home covered with cladding. This is a more attractive look and doesn’t even need painting.
Then you will have a more attractive looking investment with the added benefit of increasing the market value. With your new found equity, you can then borrow more money and buy another one.
If you want to get out of a hole, first stop digging.
Hi Smenkhare,
Another point to consider, is that many fibro homes were constructed by Ministry of Housing because of the cheap cost of materials. It may be that these homes are ex-housing commission homes or may still be so, and if they still are, their re-sale value will not increase too much over the years.
Look into it closely first, and if it all checks out okay, by all means, take Brenda’s suggestion, try to reduce the amount further, and re-cladd.
Jo
I have seen some really smick fibro renovations, what about the block size (land value) i like to rip out all the old shrubs and trees and replant, in the old days people werent too particular where and what they planted, definately reclad or paint with bright young colours (lemons and blues)[suave]
Hi Smenkhare,
There is heaps of fibro houses around that are not ex housing commission. If you know the area you will know if they are.
I love fibro.
Robo[/font=Comic Sans MS
[king]We have been happy with fibro properties. We have found they are easy and economical to repair/paint/ add on to etc.
We had a home with the vinly cladding and it constantly needed cleaning – guess it depends where you live.It also went chalky and flaked.
One of our fibro IP’s increased in value by $15,000 in 3 months this year.Wishing you sucess,
DianeThanks for the replies although I am actually more worried about the potential health problems with asbestos.
Hi smenkhare,
I live in Hedland (WA north near Broome) and we have predominant Fibro houses. Housing up here more than 20yrs is guaranteed Asbestos (the rest is a 50/50 chance). Asbestos is only aproblem if broken and unsealrd, as in frayed. What is being done up here is to modernise these homes they clad it in Colourbond sheeting and call it a Broome Style Home. this has the effect of cleaning up the outside, and it loks realy flash. Here it would cost ~$15K to do a house (but were nuts up here and charge the earth). Most of us here live in these houses and don’t have problems with breaking the walls, but some people get the walls ‘over-sheeted’ with moderday plasterboards and there by sealing the problem. They are easy to modify and, should you wish to redevelop at a later stage, they wont cost you $100K to teardown!
Think about it +ve cashflow does’t always = CG!!!Cheers
C@30
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