Hi Benny
Thanks as always for the reply to the last post, I thought I would make this a new thread however as I know how valuable feedback is so I’m going to lay it all out so far as I am almost done & ready to get it tenanted.
Everything seemed to come together thankfully over the last few days. I started getting frustrated about the amount of small jobs & the time it was taking to do them. It seemed like everywhere I looked there was something that needed finishing.
I am at the six week mark as of today, that was the completion date I set for myself. The glass arrived for the garage doors today & approval for the sitting variation for the carport is now well over due but expected any day. these are the last big jobs to be done. I will have the rest of the loose ends finished buy the time the carport goes up.
Below is a run down on what I have done & spent
The buy was a 3x1x1 two living spaces low set brick veneer (mid 90s) on a flat 730m2 block for $320k in Logan. An OK buy I will look to do better next time going in. the med is $375k
I am looking like I will be bang on the 25k (including holding) I budgeted to convert to a 4x1x2 with certs for habitable conversion of garage + cosmetic internal & external reno.
I took 10 days off work upon settlement & then worked weekends and afternoons/evenings to finish the work.
Work I did not carry out myself was internal painting & laying tiles. obviously I also needed a plumber & electrician. I could have painted myself but due to time constraints and me feeling my time was better spent demoing & doing other work I chose to pay one.
Holding 2.5K
Painter all internal surfaces two coats including garage 3k
The bathroom toilet & laundry were completely redone, bathroom resheeted & waterproofed after finding the existing “waterproofing” behind the tiles was duct tape around edges of sheeting & over the screws. I left existing plumbing where it was, re tiled everything, sub 3k
Sparky install 6 new ceiling fans, down lights in garage, external lights front & rear, cook top, re wire a tiler accident, heat lamps in bathroom, change some switches, add power points to garage. $1100
Plumber plumb in vanity, laundry tub, new toilet, change all tapware through out house $1000 ish
Buy & install “as new” actron air 7.1kw split $1200
Retile external entrance to house, kitchen tiles & tile garage floor $1700
Buy, paint & hang front door $350
Replace garage roller door & back door with new aluminium framed glass to match existing $3500
6.15 x 6.1 colour bond carport (including building certifier for garage conversion as well) $4200
Kanga to dig out driveway extension, weed-mat, fancy gravel, plate compactor, cement. $550
Drafts-man draw up plans for conversion $400
Sitting variation submission $600
curtains & roller blinds $300
Paint for external pergola, plastic corrugated sheeting to fix pergola, concrete paint, fence paint, sandstone garden edging (extensive) wood chip, small amount of plants. $950
Tools $500
Everything I purchased was from gumtree (caesarstone vanity $100, frame-less shower screen $50 as new laundry tub $50, ceiling fans new in boxes well under 1/2 price etc, or heavily discounted, tiles $10m2, curtains 1/2 price etc. The tiler basically worked for wages & I used high-pages to get quotes for electric & plumbing that gave me good savings.
I spent a lot of time planing & searching for cheap stock so I was ready to go after settlement. I took a gamble on the tiler from gumtree that paid off.
The Kitchen had been redone at some stage & recently laid wood panel “look” lino roll flooring through out were the strongest features of the house going in so I saw no value doing anything to them.
The place looks great & I am very happy with how everything went, no major dramas touch wood so far.
Comparable rent before reno is about 350, I’m going to self manage & try for 420 allowing pets & see how I go.
I expect the revaluation to fall somewhere in the $370-$390k range.
Initially I was not planing on spending 25k. It would have been the cosmetic reno or the conversion but not both however a nicely timed bonus from work chained that & I though stuff it do it all & see what happens.
I hope I didn’t over capitalise, I guess rental return & reval will dictate that. I am buy & hold with this one, hopefully time will be kind & lessons will be learnt.
Happy to hear honest feedback.
Cheers all
S
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This topic was modified 6 years, 11 months ago by
Simon.
Property is now tenanted @ $425pw.
Hi Simon,
Your reference to the other post reminded me of “all those extra little jobs” that were crushing you…
https://www.propertyinvesting.com/topic/5037056-all-the-little-jobs-loose-ends-at-the-end-of-a-reno/
is the link for any others interested.So how did you go with all those little jobs? Was the above list detailing them all, or were there other small jobs “yet to be done” after those mentioned above?
Sounds to me like you have done very well, and not over-capitalised at all – lemme see if I have this right now (estimates I make will have .est. alongside the item):-
Purchase price ………………………. $320k
.est. Closing costs at 3% of $320k – call it $10k
Renovation/paint/etc ……………………$25k so all up, $355k to get into a 4/1/2 house in that area.I don’t know which burb of Logan you bought in, but I took a punt at the kind of area with a $375k median for a 3 bedder, and found a suburb that is close (had median of $369k). Then, I looked for a 4 bedder in the same area, and it told me $430k !!!
That tells me, that it is odds on that your (now) 4 bedroom house is in an area with a median around that same figure. Well done !! A sweet little equity gain there. Of course, your place might not be quite median for several reasons (you bought it below the median – was that great buying, or does that reflect location, condition, or desperation on the part of the seller?)
Suffice to say, I reckon you have done well. Oh, and a rent of $425 weekly fits with a median value of $430k as well, according to re.com
Nice work, Simon ! Spend a week or two coming to grips with what you just achieved. Then sit down and think hard whether that is something you want to repeat (perhaps again and again) or whether you might try a different tack.
If it is true that you just generated $75k ($430k less $355k) in a few months, what if you did two per year? Of course, that is an Equity jump – it doesn’t translate immediately to Income, but hey…. I’d take it !! ;)
Benny
Hi Benny.
Sorry rookie error with the medium pricing, i gave you combined. 3 bed 325k, 4 bed 415k, hence I felt I could try to do better going in next time.
I thought the bones were good with easy wins cosmetically. The block was flat with side access which is not so common in the aria, elevated so no flooding issues, close to train and school + the garage was a very straight forward conversion being under roof line, lined, no problem with heights etc (there are 3/1/1’s selling with less land, one living aria & just a carport for $320K). In saying that this suburb has significant pricing variances street to street. You can pick up a 4 bedder in the mid to high 3s in the less desirable streets. My one is in one of the better arias with more house proud OO’s so I felt it ticked a lot of boxes. Turns out the owners were motivated to sell as they had purchased elsewhere but being as green as I am property negotiation isn’t a strength I yet acquire. B&P came back fine after a termite scare that on second opinion was a incorrect call. so no room to move there.
I got all the small jobs done with a few extra days off work, I didn’t factor fatigue into the last few weeks, throw in some “added landscaping” jobs & a couple of weeks with the flu & the last couple of weeks were tough.
I will be conservative with value as it sits until a valuation comes back saying otherwise. I recon $380-$390. I would be very happy with that. I have generated imitate equity, I know my property inside out, know its sound and appealing to both rental & sale markets. Most importantly though is what I have learned & now know I can do.
Buy, reno, reval, hold and repeat is the plan.
I plan to save some penny’s, pay down some debt then look closer to Brisbane for the next. Logan is convenient though and I could repeat again I just think Bris will have better CG.
Cheers All
S
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This topic was modified 6 years, 11 months ago by
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