Hello everyone,
I have just had an offer accepted on a house which I believe is a very good buy. It is not being conducted through an agent and I was lucky to meet a customer that came into my work who was desperate to sell as he was having financial troubles and was moving out of town due to personal situation. He could not afford to get a loan to renovate the property and I saw it as a perfect opportunity for us to create a WIN/WIN situation for both of us.
Market prices in the area for a 3 bedroom place is around $265k-$275k. Residex estimates it to be valued at $280k. Offer has been accepted at $210k however it needs a new kitchen, carpet, paint, new doors, finish tiling in laundry/kitchen. Bathroom & toilet have already been done renovated. I have negotiated a a 52 day settlement with early access so I can start reno's and give enough time to get a tenant in place. He has also thrown in tiles which had previously purchased but couldnt afford a tiler to complete. I am budgeting $20k- $25k max as this is my first renovation so I am trying to get extra conservative.
Can anyone tell me how much it would cost if I was to knock out a wall to open up the kitchen and living area? I would need to confirm it this is structurally ok to do this too but an approx figure would be helpful. I think this will add value to the property as it would allow me to create a more open plan living area and allow room for a bigger kitchen and dining area.
Also, in relation to finance am I best to clean it up prior to getting it valued? I work in a Bank and I see so many properties get valued at what the Contract price is. Due to this not being advertised on the market through a REA should I get a few appraisals from REA's and take them to the Bank along with RP Data and Residex reports? I have called 2 agents I know well and both were impressed and have confirmed it is very low price for the area. I am hoping to gain instant equity once the property has been renovated. I know the Bank will have to do a valuation as it is not being conducted at arms length.
If any experienced renovators on the forum can share some helpful tips in relation to costings and the best way to obtain finance for a project like that would be greatly appreciated.
Cheers,
Jac
Congrats Jacqui. Sounds like you just got lucky…and you get to help someone else along the way. Take care not to over-capitalise in your reno – keep to cosmetic rather than structural renovation. eg if kitchen wall is load-bearing it would be better to cut a large opening instead of demolishing it. What did the agents estimate the rental return be post reno?
Graeme Freer | Freer Property and Finance
http://www.freerpropertyandfinance.com
Email Me | Phone MeBuyers Agent
Thanks Graeme,
Its seemed like a good place to start for a renovation as I know the area well and half the work is already done. Estimate on rent is $320 – $330 p/w post reno and would appeal to a family. I will speak to a builder on Monday to ask about the wall. I first have to get pest report and building report done so I will try not to get too ahead of myself!
It has a double carport – by converting into 2 LUG's does it increase in value by much or is it not worth it?
Well done. As mentioned don't over capitalise.
At this stage I would look at the wall being removed. Put in a kitchen and paint. Garages etc can be done later.Be very careful about early access.
The owner may decide he sold too cheap after looking at the reno and how much it's worth and not want to follow through with settlement. In this situation I would get everything organised first then do a quick reno after settlement. For what you want to do it's only a couple of weeks. Have the kitchen ordered and ready to go. Clean, paint, tile.
Hi Cataylst
Did you mean to say you *wouldnt look at the wall being removed?
My main concerns are there are 3 bedrooms – 2 with built ins however one is really small but has buit in robe. What minimum size can a bedroom normally be?The kitchen and dining area are really small where the loungeroom is quite large so I thought it might be good to open it up so I could use more room for the kitchen and dining area.
I was thinking of ripping up carpet in the dining area and putting large light tiles throughout living area to make the place feel bigger and not so dark. There is currently ugly carpet in all rooms and old lino in the kitchen. Would this be expensive to do? My other unit has large tiles throughout kitchen and living area and a developer did this so I thought it must of been pretty cost effective and added value to the appearance of the property. I will keep all bedrooms carpet though.
I plan on cleaning up the yards (they are about knee high in length!) , ripping out the carpet and repainting during early access period. The owner would of moved out of town before that starts so at least he doesnt see the finished product. I have a friend lined up to do the kitchen just have to get him in there to give me a quote. He said he can normally do it cheaper & better quality than bunnings flat pack kitchens.
Jacqui,
For minimum room sizes talk to HIA…Kate Harding
Building Services Adviser
Housing Industry Association Ltd
14 Edmondstone Street
South Brisbane 4101
p 07 3846 1298
f 07 3846 3794
hia.com.auPersonally I feel anything smaller than 3m x 3m is unlivable
CheersGraeme Freer | Freer Property and Finance
http://www.freerpropertyandfinance.com
Email Me | Phone MeBuyers Agent
I "would" look at removing the wall. No use replacing carpet etc if you are going to move/remove a wall.
Also it sounds like it will better suit the layout of the house. To carpet a basic 3 bed house is about $2500 for a cheap carpet.
What about floorboards for the living areas? I like them. I do like carpet in the bedrooms though. If the small bedroom has the built in robe and it's too small, take the wardrobe out. Maybe move it to the bigger one? If you rip up the carpet and tiles yourself (not difficult) it will save money. Go into a tile shop with rough room sizes (if you don't have measurements) and get a quote. Not sure of tile prices sorry.
Let us know how you go.
I will speak to a builder and hopefully I can knock out the wall. I dont see the point in paying money to renovate the kitchen and tile the area if I then decide to knock out the wall and I would be left with a small kitchen and then the area needs retiling etc.
I have checked out the floor boards under the carpet and it is in very ordinary condition. I dont see a polish making it look any better either. What about those fake floor boards? Would that be cheaper? I plan to hold this property after renovating it not selling straight away so my concerns are getting something that is cost effective but also durable so tenants cant destroy it!
If all goes well with building & pest report I will get some before pic's of the property and try and post them up.
Thanks for your advice Catalyst and Graeme.
I am sure I will have more questions to post when the reno's begin! I am very much a 'rookie renovator' so I appreciate all the help I can get! haha
Quick Update…
Building & Pest are fine.
Negotiated a new offer of $200k with a 40 day settlement and early access. Previously was $210k and 52 day settlement.
I have offered to pay for his legals as he cant afford it and this help with me getting a lower sale price. Overall, very happy with the outcome.
Looking forward to starting the reno's!!
Hi Jacqui,
This has been a really interesting read for me. It sounds like you have made a great deal even better. Great work! I look forward to hearing how things progress.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Andrew,
Thanks for your post.
When I have more news on the progress I will update the thread. I have found a builder who can either manage the whole project or just do odd handyman jobs I need. I will get some quotes on both options before I make any decisions. One benefit of him managing the whole reno as it will likely mean more convenience as I will be in Sydney by the time we get access, however it will likely come at at premium.
jacqui_03 wrote:Quick Update…Building & Pest are fine.
Negotiated a new offer of $200k with a 40 day settlement and early access. Previously was $210k and 52 day settlement.
I have offered to pay for his legals as he cant afford it and this help with me getting a lower sale price. Overall, very happy with the outcome.
Looking forward to starting the reno's!!
Good on you! You're a go getter. You take action and you make things happen. You will NOT loose. Go forth and multiply <img border="0" alt="" /
:)” title=”>:)” class=”bbcode_smiley” />.Looking forward to further updates.
What would you do in this situation…………. Needing help with what flooring to use in kitchen/living area and hall way.
Currently there is shitty lino and ugly carpet in lounge room and bedrooms. I will definately be replacing carpets in the 3 bedrooms however I originally was going to tile throughout kitchen and living area however a friend who is a tradie looked at some of the floorboards and said it would be alot cheaper to sand them back and polish them up.
I called a floor sanding place and he checked them out today. Only problem I am facing is the boards under the lino have glue on them and he said he cant put the sander over it. He said I could get a kerosene on it however it is highly flamable and he wouldnt be able to sand it for another 4 weeks. He thinks it would get the glue off but did not want to recommend it due to the dangers.
My options are :
Do polished floor boards in lounge ro
om
What would you do in this situation…………. Needing help with what flooring to use in kitchen/living area and hall way.
Currently there is shitty lino and ugly carpet in lounge room and bedrooms. I will definately be replacing carpets in the 3 bedrooms however I originally was going to tile throughout kitchen and living area however a friend who is a tradie looked at some of the floorboards and said it would be alot cheaper to sand them back and polish them up.
I called a floor sanding place and he checked them out today. Only problem I am facing is the boards under the lino have glue on them and he said he cant put the sander over it. He said I could get a kerosene on it however it is highly flamable and he wouldnt be able to sand it for another 4 weeks. He thinks it would get the glue off but did not want to recommend it due to the dangers.
My options are :
Do polished floor boards in lounge room
What would you do in this situation…………. Needing help with what flooring to use in kitchen/living area and hall way.
Currently there is shitty lino and ugly carpet in lounge room and bedrooms. I will definately be replacing carpets in the 3 bedrooms however I originally was going to tile throughout kitchen and living area however a friend who is a tradie looked at some of the floorboards and said it would be alot cheaper to sand them back and polish them up.
I called a floor sanding place and he checked them out today. Only problem I am facing is the boards under the lino have glue on them and he said he cant put the sander over it. He said I could get a kerosene on it however it is highly flamable and he wouldnt be able to sand it for another 4 weeks. He thinks it would get the glue off but did not want to recommend it due to the dangers.
My options are :
Do polished floor boards in lounge room
and
What would you do in this situation…………. Needing help with what flooring to use in kitchen/living area and hall way.
Currently there is shitty lino and ugly carpet in lounge room and bedrooms. I will definately be replacing carpets in the 3 bedrooms however I originally was going to tile throughout kitchen and living area however a friend who is a tradie looked at some of the floorboards and said it would be alot cheaper to sand them back and polish them up.
I called a floor sanding place and he checked them out today. Only problem I am facing is the boards under the lino have glue on them and he said he cant put the sander over it. He said I could get a kerosene on it however it is highly flamable and he wouldnt be able to sand it for another 4 weeks. He thinks it would get the glue off but did not want to recommend it due to the dangers.
My options are :
Do polished floor boards in lounge room
Need help with deciding on flooring on new IP purchase..
Currently has lino in kitchen and carpet in lounge room and bed rooms. Bedrooms are all being recarpeted however what I cant decide what to do in the kitchen. The situation is there are good floor boards in hallway and lounge room however boards in kitchen (under lino) have glue residue on them and can cause problems when sanding. I was advised I could try using kerosene to remove the glue however it is highly flamible and dangerous. Anyone had a go at doing this??
The questions I have are, if this was your investment property which you intended to have revalued and held as an IP what would you do.
1) Polished floorboards in lounge and hallway and either tiles/ vinyl tiles / lino in kitchen
2) Carpet lounge room and hallway and use lino in kitchen which look like fake floorboards
The property was purchased for $200k and Bank valued it in its current (poor) state for $215k. I plan to do a renovation to add more value and also be suitable for a rental property.
The kitchen will be getting replaced and I have currently bought new omega stainless steel oven, omega ceramic cooktop, rangehood canopy and stainless steel dishwasher all for. Will be a modern looking kitchen and wanting to keep with the theme without cheapening it.
I got a quote for vertical blinds for the property today – 11 blinds – $1540 no cost for installation. Is that expensive or OK?
ALL HELP IS REALLY APPRECIATED!!!!
If the floor is good enough and consistent over all areas and a nice enough wood l'd start the process of the good old kerosene and you can add more soaks in between times which might speed the process up. Four weeks will go by during the Reno. Kero kills all termites and bugs to though it'll be a bit on the nose for a little while.
But if the wood is a bit questionable go for a cheap to median quality laminated flooring for around the same cost as sanding. Can self install and they are easy and quick.
Sanders can disturb Asbestos in some glues!
Then their is tile or lyno. There probably some sort of tiled sheeting type product on the market as well to look into. Go with what will look best for the price you want to pay and only you on site can best tell.
When it comes to blinds it varies greatly on size. I bought 5 Venetians here http://www.innercityhomeproducts.com.au/ for $305 and thrilled with the purchase and the look of them and delivered straight to the door from Perth all included. I was quoted from another place for the same order for over $2500. I priced five or six places online because local here they way to much for same.
Hi Daniel,
Thanks for your reply, very desperate for advice at the moment. Only have 2 weeks to get it sorted before I go so a little under the pump.
Is laminated flooring those clip in floorboards? I have heard they buckle up if waters gets on them? I went to Carpet Choice and got a quote for vinyl tiles and they were just as pricey if not more expensive than ceramic tiles?
In the eyes of a Valuer do floor covering have a big impact in price or not? I dont plan to sell after renos but I do plan on having it revalued to use the equity for more IPs.
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