Join Australia's most dynamic and respected property investment community

Adelaide Renovation - Converting GP / Surgery

Discussion in 'Renovation & Home Improvement' started by ramssss, 23rd Jun, 2016.

  1. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    I've been looking for a property in Adelaide the past year or so and a listing in Alberton (5014) caught my eye last month. The front facade looked like a beige rectangular bunker. There's this wall of decorative concrete block that spans the entire width of the house. It had really poor street presence compared to the beautiful period homes you'd normally find in this suburb. However it's walking distance to train station, local IGA, post office and chemist. Adelaide CBD is only 11k away.

    @D.T. , kindly inspected the property for me as part of his interstate property inspection service. It was really convenient, saving me the cost of flying down. Long story short, I low balled and settlement is scheduled for the end of this week.

    [​IMG]
    [​IMG]

    The property was previously used as a GP's practice. Built in the 60s, it's a brick construction with flat galvanised iron roof. Land is zoned as residential. There will be minor change to the floorplan to convert it back to residential use. I'm hoping that we can end up with 3 bedroom and 1 bathroom at the end of the reno.

    The plan is simple. Renovate, revalue and hold. My case study is a similar property nearby that sold for 428k post renovation.

    Approx numbers is as folows
    Purchase: 280k
    Stamp Duty & Purchase Cost: 13k
    Insurance: 1k
    Holding cost: 4k
    Renovation: 40k
    Contingency: 10%
    Target valuation: 390-400k (10% less than suburb median)

    Engaged @D.T. to manage the reno for me, and he is currently organising trades at the moment to finalise their quotes.

    So in the coming weeks, @D.T. and I will try to post any progress and updates.
     
    Perthguy, Skuttles, Jye and 7 others like this.
  2. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    Submitted an DA to council last week to register change of use from Surgery back to Residential.

    Below is the proposed floor plan. There were a couple of walls that need to be removed. None seems to be load bearing or had any significant span. Bathroom is super tiny - so we'll need to be creative there to keep it functional.

    [​IMG]
     
  3. jeff3002

    jeff3002 Member

    Joined:
    1st Feb, 2016
    Posts:
    18
    Location:
    Adelaide
    Very interesting Rams! Good luck with the project :) I'll be watching with interest. Definitely looks like it has potential!
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,594
    Location:
    Adelaide, SA
    Renovation in the western suburbs will prove very interesting :)

    Should post some inside photos to show what kinda state its in!
     
  5. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    Yes! Photos!!!
     
  6. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    730
    Location:
    Sydney
    I hope you keep that breeze block façade. It's a great feature.
    Needs a cactus garden out front.
     
  7. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    I reckon a new paint for the facade would be cool. Is the rest of the house made of sandstone?
     
  8. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    Ok, here's some before shots. Beware, might ruin your appetite. It's actually worse in real life as @D.T. would testify.

    [​IMG]
    [​IMG]
    [​IMG]
    [​IMG]
    [​IMG]
    [​IMG]
     
  9. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    not too bad at all @ramssss are you going to rip up the carpet and polish floorboards? Happy for you. Looks like you're onto a good thing! Got to check SA once I'm done with Vic.
     
  10. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    925
    Location:
    Qld
    The price comparison you gave at $428K is listed as 4 bedroom and 2 bathroom, which seems completely different to the floor plan you showed unless you are planning major extensions??
    Marg
     
  11. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    @Depreciator Yes, I like the facade too. Pink trims and overgrowth certainly doesn't work with it. I'm toying between keeping it as-is or painting it white.

    @larrylarry The rest of the house is a combination of brick and concrete blocks. Options I'm considering in descending order of cost: render, clad, paint.

    @Marg4000 I agree, even though it' only 30m away on an identical size lot, that example will always going to be more expensive unless we extend to add more floorspace and create an covered outdoor area. So I estimated this one will end up at least 30-40k less. Do you think the price gap should be bigger?
     
  12. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    I think the OP is looking at "Target valuation: 390-400k (10% less than suburb median)"
     
  13. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    I think paint can give good effects.
     
  14. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    730
    Location:
    Sydney
    Those low windows in the front room are great. I think these sort of classic 60s properties are best kept true to their era. I'm finishing a reno on a 60s flat and I undoing all the stuff the previous owner did in trying to make it not look like a 60s flat. I wouldn't paint that façade. Is it on a slab? I would polish it. Get some old lights. IKEA have some good 60s/70s looking curtain fabric. It could look great for little expense.
     
  15. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    @larrylarry talking about paint, there are two colour schemes we've been toying with.

    I wonder if I we can do a quick poll/vote on which one you think looks better.

    Option 1:
    Dark gray trims (eg. Colorbond Monument), off-white walls (eg. Antique White USA).
    [​IMG]


    Option 2
    White Trims, dark gray walls.
    [​IMG]
     
  16. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    730
    Location:
    Sydney
    Is it painted now? Too hard to tell from the front pic. If it's not painted, leave it.
     
  17. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    I also agree with @Depreciator on the issue of paint but I think it's best that you freshen up the place internally through paint. Exterior... Maybe give it sometime before you decide... Sometimes the building speaks to you.
     
  18. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    @ Depreciator The decorative blocks are not painted at the moment. They have a strange orange/pink hue. I think you're right - we should keep it as is.

    There's floorboards underneath the carpet, so we're hoping they are in good nick to sand and polish.

    There are mismatching exterior walls at the moment. One side is cream bricks, the the other is grey concrete blocks. The horrendous pink trim on frames windows and doors are consistent .
     
  19. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    Dang. Seeing you and your project spurs me to buy one and renovate!
     
  20. ramssss

    ramssss Member

    Joined:
    12th Nov, 2015
    Posts:
    20
    Location:
    Melbourne, VIC
    @larrylarry There's only one way to scratch that itch....

    ... fly down to Adelaide and help me reno.