I’m pretty happy with the value we’ve just added to our latest reno at Raceview, Qld.
Purchased Feb ’06 $135000
Stamp Duty etc 4000
Reno costs 21000
Total Cost 160000
Value Now 200000
Gain $40000
======
We just had a new tenant move in last week paying $205 per week. You’ve got to be happy with that !![biggrin]
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”What sort of renos did you do to achieve that?
I am sure many people here will be interested.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon. It was only a basic makeover For those of you interested here goes;
Stumper to level and fix $3650
Plasterer $550
Tree lopper $750
New double carport kit $1486
New Laminex kitchen bench top $220
Bobcat $372
Pest Control $187
Skip bins 2 @ 190 = $380
Electrician $1204
New glass shower screen $829
New Security grills $774
Roof repair and paint $990
4 x new room a/cond $1193
New carpet $1920
New Curtains $601
Misc. $5894 (Paint, silicone, timber, gravel, light fittings, plumbing bits, concrete etc)
The labour we supplied ourselves “free”.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Hi Amanda,
Can I ask what the total duration took?Also how many work hours in total you think was spent?
Im thinking Im going to have to do something similar soon, but I also work full time.
Thanks
MatHi Mat,
Not sure on the exact hours but basically every chance we had between Feb and May. This is my “job” so I drop off the kids and then go to work onsite, then back by 3pm for school pickup. So for me its around 5 hours a day plus 16 hours on weekends. My husband works full time (so we get the loans approved) and does all the construction work on the weekend (16 hours). During the week I “pretty” things up and manage the job. Presently at home catching up on office work.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”So, let’s assume a couple of days off, that comes to:
25 hours per week plus 32 hours per weekend equals 57 hours per week multiplied by 16 weeks for a total of 912 hours work. At 40k added value that’s $44.00 per hour. Nice work Amanda!
Out of curiosity, a couple of questions. Do you think this would have been a viable project if you were not able to do most of the work yourself? Would you have been able to hire competent labour for less than $44 per hour? And finally, how the heck do you maintain your motivation? I suffer burn-out after only a few weekends of renovation work, even though I do find it highly rewarding (satisfaction-wise, not monetarily)!
Well done, and thanks for sharing your tale.
F.[cowboy2]well done !!
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Hi Foundation
yes you can find competent trades for about $44p/h (or less) but keep in mind they also complete the work much quicker than you or I!!!
Hi AmandaBS
It is great that you can increase the value of the property like that (& hats off to you) but your rental return is (unless you have many $ in the deal as CF~-, and even more – if you take into account your new value of $200k)
Not meaning to wee on your parade as you have done a magnifcent job, however are you better off holding, or selling & taking profits to place in another deal(s)??
Multiplication by Division I have heard somewhere before????
Anyway, do what is right for you as you seem to be doing very well so far, just giving another option??
best of luckTroy
TroynBec
You can have more than you’ve got because you can become more than you are
selling ?? 40k profit will look a bit different after taxes and selling cost – just personal opinion but while still working you could hold and leverage into others. The property will compound from now off a base of 200 rather than 160 which will make a considerable difference over the years.
i think calculating hourly rates etc can be a false economy. The reason I say this is that although it is your job i get the feeling it is something you have done over an above your normal activities. Or in other words is it equity that you would never have. I don’t know many jobs where you can choose to increase your salary by 40k (perhaps sales) Also, as you repeat the process you will learn along the way and there will be increased efficencies just because you know what works and what does not. In other words it will get faster and easier.
You may even choose to do two or three at once and use more outside labour or start project two once project one reaches a predetermined half way point.
Good luck.
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Hi Foundation,
I often read about others getting in contractors to do the work but I just don’t see how we could have made a profit from it and where’s the fun in that ! Nothing like the smell of paint on a cold morning !
Motivation is really hard when I’m on my own most days but I take a TV on site to keep me company, and on the weekend we have 4 little “helpers”. Things don’t always go to plan as you’ll see in myother post “Mission Statement”.
By the way we finished the reno work in 12 weeks but had it listed for rent for several weeks until we found a suitable tenant.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Greetings Amanda,
A tip from the RenoKings, they place a property as available for rent from the moment they own it. It’s a case of “your welcome to rent it while we improve it”. [wink] Also this has some tax advantages.
Having said all that, I guess it depends on how BAD a state the place was originally (missing roof and walls?).[blink]
Cheers4now
MichelleHi Guys,
In my opinion the house was not rentable when we bought it. The stumps, although concrete had moved in the black soil and the place was like a ship with doors not closing. Not to mention the leaking roof and how dirty it was.
This is our second job for the 2006 tax year and we sold the other for a $60K profit with only a 6 week turnaround, so we intend to hold this one. The other reason for holding is the land is zoned suitable for a duplex so the plan is to hold the property for 5-10 years and then either sell or do the development ourselves.
In the meantime the rent just covers the loan and we can use the equity to repeat the process again. This was our fifth reno alternating with sell and hold.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Amanda,
another question onto the list.
Where abouts in this wide brown land are you?
FATMAN
Far out Great work Amanda!
You obviously have yr head screwed on as to what to purchase to make a profit! This is definately not as easy as it sounds.
All the best
LukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hi Fatman,
The property is in Raceview, which is a suburb of Ipswich.(Qld)
The city of Ipswich has around 140,000 people and is around 45 min west of Brisbane. It has suffered in the past from a poor image but has been undergoing some major changes lately. A lot of new development if happening and the city centre is having a “facelift”. There is also a lot of industrial property in Ipswich along with Amberley RAAF. According to the SE Qld plan the population of Ipswich is expected to almost triple in the next 20 years. I suppose you would liken Ipswich to Parramatta in NSW or perhaps Ballarat in Vic.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Hi, sounds OK. How much interest are you paying on what amount and how much if any do you have to put in yourself to make the payment each month. These are the imortant questions especially if your caught in the slow market areas.
Top value adding, would love to here about the type of renos you gave the place.
Glauco[biggrin]Originally posted by AmandaBS:Thanks Simon. It was only a basic makeover For those of you interested here goes;
Stumper to level and fix $3650
Plasterer $550
Tree lopper $750
New double carport kit $1486
New Laminex kitchen bench top $220
Bobcat $372
Pest Control $187
Skip bins 2 @ 190 = $380
Electrician $1204
New glass shower screen $829
New Security grills $774
Roof repair and paint $990
4 x new room a/cond $1193
New carpet $1920
New Curtains $601
Misc. $5894 (Paint, silicone, timber, gravel, light fittings, plumbing bits, concrete etc)
The labour we supplied ourselves “free”.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Hi Amanda could you please email me with where you got the following supplied:
Double Carport Kit
Roof Repair & Paint,
Stumper
&
Security Grills
Thanks heaps,
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Email sent to Stuart
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”AmandaBS wrote:Thanks Simon. It was only a basic makeover For those of you interested here goes; Stumper to level and fix $3650 Plasterer $550 Tree lopper $750 New double carport kit $1486 New Laminex kitchen bench top $220 Bobcat $372 Pest Control $187 Skip bins 2 @ 190 = $380 Electrician $1204 New glass shower screen $829 New Security grills $774 Roof repair and paint $990 4 x new room a/cond $1193 New carpet $1920 New Curtains $601 Misc. $5894 (Paint, silicone, timber, gravel, light fittings, plumbing bits, concrete etc) The labour we supplied ourselves "free". Amanda "It is better to be inconspicuously wealthy, than to be ostentatiously poor…"Great work Amanda
do you mind telling me where you bought the carport kit from?
thanks.
Regards,
Pat
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