- jacqui_03 wrote:
House Call,
Just to confirm,
I am not selling – It was a Buy, Renovate, Hold project. I plan to hold the property for the long term.
And the figures you have calculated are not accurate. If you read further down the post you would see a change in figures.
Purchase Price was $200k – The valuation at Purchase was $215k – So I bought it for $15k under market value prior to renovating.
Purchase costs were – $5600 for stamp duty, $1000 legals, $600 buildling/landlord insurance.
Renovation was $20k – Not $25k. $25k was the very maximum if something went wrong.
I have not got a valuation yet after the renovation as we have just completed.
We do not have any sale costs either as we are leasing the property.
The property was purchased due to being Under Market Value, Opportunity to Add more Value and decent rental yield.
Oh Yeah. Sorry Jacqui-I did not notice there was a whole second page of comments after the first page!
Your photos look excellent. That is a brilliant job. Inspiring.
Also going back to my last entry, your purchase costs were a lot less than I guessed then.
So assuming you get a valuation in vicinity you thought, your numbers are:
purchase: $200k
costs: $7200
renovation: $20kvaluation: $270k
total capital gain: $50k
(profit if you sold with 5% costs: $29k)That is more like it, for your 3.5 weeks work. No wonder you want to do it again.
Curious, how much of this job did you outsource vs do yourself?
As we moved to Sydney when the property settled most of the work was outsourced.
Major things outsourced- Kitchen, Painting, Tiling, Electricial, Plumbing, Carpets, Wall Removal (Builder).
Handyman jobs such as replacing all the external/internal doors and locks, floor sanding and polishing were completed by my partners father.
We completed most of the labour work in the gardens and inside the property. We put in new front garden, new lawns and removed alot of junk/weeds etc from the front and backyards. We also had my parents help with this and a couple of friends for 1 of the weekends. Very appreciative of their help as if I hired a gardener to do the job it would of cost a fortune with the amount of work required.
We really could only contribute 1.5 days work per weekend over the 3.5 weeks due to travelling 5 hours to get to the IP.
Next Reno project will be closer to where we currently live and hopefully we can oversee the project more frequently. I work long hours and spend 2.5 hrs per day commuting to work so it doesnt leave much time for me to get stuck into the renovations so I dare say we will continue to outsource most of the work to the professionals.
I think you need to way up how handy you are and if you are capable of doing as good of a job as a professional and within the same timeframe.
Updated before/after reno pic's – http://s1130.photobucket.com/albums/m538/jacqui_303/
Hope everyone has had a lovely Christmas!
Thanks Jacqui
Always love to see before and after pictures of renovations. Nice!
Marie
jacqui_03 wrote:Updated before/after reno pic's – http://s1130.photobucket.com/albums/m538/jacqui_303/Hope everyone has had a lovely Christmas!
Congratulations!! It looks great. Renos are always an interesting process to follow
Well, its all finished now. Tenant moved in last week paying $340 p.w for 12 mths. My estimate was $320 – $330 p/w so I am happy with the result. We have applied to refinance our loan to unlock the equity after the renovation. Very happy with the result as the property is valued at $285k. I was working towards $265k – $275k to be conservative but was hoping to crack the $280k mark.
Gross Rental Yield – 7.82% – This includes purchase price, reno, stamp duty, legals, insurance
Gross Rental Yield based on Rent over Purchase Price – 8.84%. Valuer estimated rent at $250 p.w prior to the renovation.
Capital/Equity Gain – $59k – This includes Valuation less Purchase Price + reno + stamp duty
I have included stamp duty costs involved with all calculations – Do you all do the same or not? I know when REA's calculate gross yields they dont use it so it appears higher.
I just want to finish up this thread by thanking each and every one of you who contributed in any way. I am very appreciative of all the help you have provided me along the way. It has been great sharing my first renovation with you.
I wish everyone the best in 2011 and hope it is a happy and prosperous year for all.
Jacqui
Hi Jacqui,
Firstly congratulations on your first project, I am also doing my first project and think you may be able to help me with some questions.
Just wondering how much did it cost you to get the wall removed? Also did you get an engineering certificate to show it is non-structural? How long did that take and how much was the certificate?Thanks a lot! We will settle on the unit early next month, and we are feeling that time is flying fast, we probably can't start the actual work as soon as we settle. A bit stressed, but fingers crossed we can finish the reno on time!
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