Greener than Kermit

Personally I would save your money on the courses and buy the API renovators handbook for $30. And obviously you have the internet so everything you need to know is on there! I learnt how to plaster and lay carpet from youtube and mitre10/bunninings instructions. I put up new ceilings and floors in 3 bedrooms and you wouldn't even know it is a DIY job! You will be surprised how much info you can get for free!

Good luck with it!

Cheers,

Hi Jewel.

Great to hear you are part of the community!

I had never renovated anything, or developed anything or bought property, until I jumped in the deep end and did it!

If you are looking at renovating, Dean and Elises pack is awesome, you'll have to try to find one second hand tho, I don't think they are making it any more.

If you are looking at a fixer uppper, have a look at properties that are 'done' and see if there is a substantial difference in price between renovated and unrenovated. Look at rental return on the two as well. if there is not a nice big gap between the two types of properties, it may not be worth the time and money.

Have a look at auctions, clearance places, start talking to people in plumbing shops etc to get ideas on how much things cost, before you jump in. You may think a vanity cost $250, and when you get to it, it costs $500. it's good to be realistic.

Good on you, keep learning and sharing!

Cheers

D

Personally I wouldn't rush out and spend $$$$ on a course unless you are planning on doing lots of reno's.

We've done a few. I looked at Cherie Barbers course only because we are thinking of moving to buy/reno/sell and her course has lots on how to target areas etc. We do a lot of the work ourselves. She concentrates on outsourcing work so won't help with doing stuff yourselves.

It's a great way to build equity and yield if you don't mind doing a bit of work. Hard to believe rent on a renovated property would be the same as an unrenovated one. Maybe ask another agent and/or look on RE.com

What are you looking at doing?

Check Ebay for items. Many shops advertise there now at discount prices (clearance items for example). We got our vanity for $600. It was in one bathroom shop for $1200.

I went to a 2 hour workshop with the Reno Kings. Couldn't wait to get out of there. I hate screaming, yeehah look at me stuff. That's them.

Derek has alot of good points there Jewel. Personally I think renovating itself isn't that difficult but renovating for profit is alot different. I know a few guys that have completely stripped there house out and re did it, and the extra value it added is no where near what it cost them not to mention the hard work and time taken.

If you spend 20k on a renovation and it would only increase the value by about 20k or even less then in my opinion you are better off paying that 20k off your loan. You are still increasing your available equity by the same amount, just depends how much you value your time and obviously if you live in the house then renovating isn't just about the money made.

Make sure whatever you spend it is at least adding double or even triple the amount of value to your house.

Just my opinion anyway.

Cheers,

Sounds like you're ready to go!

Fingers crossed you get the property for a good price!

My apologies, should have started in a new thread

Hi Jewel,

Sounds like you have done a lot of work – well done.

Have you obtained an indicative value for the property once the work is completed? While it sounds as if you have done a lot of the preparatory work you do need to have some idea about what profits & rental increases you will achieve with the work you intend to do.

Maybe set yourself an improvement target as a benchmark. This could be something as simple as we want to double our investment – that is spend $20K and improve value by $40K. As I said earlier I am not a renovator so I am not sure what is considered reasonable.. Maybe some of the more regular renovators can provide some guidance for you.

Having said that bear in mind you are starting out so you may not be able to achieve the lofty heights others manage to achieve but, you have to start somewhere.

The only other comment I would make is that I do recall renovating our home (come investment property) many years ago and one thing led to another and before long we had pretty much 'touched' everything in the house at some stage. What was financially profitable, a waste of time or neutral I have no idea.

Hope this helps.

PS I'll paint yours if you paint my Melb place.

Hahahha!!!!!!!!!!!  Brilliant!  One day there shall be a who's who of pi.com party and faces can be put to names.

It is true that you need to be sure you don't overcapitalize on costs, but it is not black magic.  I am sure you can create a spreadsheet with a basic list of things you intend to do in the reno and what each thing will cost.  You can also wander around Bunnings just staring at all the products they have.  You'll soon start to grasp what products are available and what they cost.  Bunnings also has staff that are happy to talk to you about your particular requirement and offer an opinion on how you'd go about doing it.  They'll even walk you to the aisle where the relevant products for the task are located and point to them.  Easy. 

I'll give you a tip about reno parties… if you put on a barbeque, people will come.  They'll be dressed in reno attire, and they'll even bring some tools and gardening equipment along.  Why not.  It's part of the Australian way.  Helping other people get their first home on track.  Who cares if it an investment property.  Same same.  Helping other people who are starting out and a bit unsure.  A friend of mine was shocked to see 30 of her buddies show up to help her at her reno party… and all it cost her was a few sausages and hamburgers, and it was a very fun day for all that attended.  Let us know when your party is