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buying a property ripe for renovation

Discussion in 'Renovation & Home Improvement' started by samiam, 5th Sep, 2015.

  1. samiam

    samiam Well-Known Member

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    Hi All,
    Just new to the forum but have been reading and learning here for last 6 months..
    finally be able to buy first property in regional NSW after painfully saving for the deposit..
    I have seen few properties (needing renovation) on the market/ coming up for auction but unfortunately I am not a handy person and don't know anyone who is great at handy work..
    is there any service like willing to look at property (at open house) and give estimated quotes for renovation? e.g., painting, vinyl flooring/ new carpeting, new kitchen, bathroom tiling, etc etc.
    Thanking in advance for responses
     
    Last edited: 5th Sep, 2015
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  2. Pins

    Pins Well-Known Member

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    I haven't used these folks but I know they do renovation plans based on photos. You could then use this to budget and organise your trades etc

    http://hotspaceconsultants.com
     
  3. WestOz

    WestOz Well-Known Member

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    Guessing from your post your buying in your local area?

    Firstly, if not confident with DIY anything you have done is going to cost you considerably in labor, i.e it could cost ~$100 for a task when the part only cost $5.
    Don't know your area but in my case a standard handyman starts from ~$50ph, this isn't just the time at your premises, they have to run around organizing/collecting any required materials etc.
    Can get cheaper labor but won't be licensed/insured, usually want cash, get what you pay for.
    Consider this with any purchase requiring major reno works.

    You could interview a few well experienced handymen, check some of their past work, ask their customers their thoughts etc, decide on one that ticks all the boxes incl you & he clicking, i.e. he talks noob so you understand whats required for a task, expected costs etc.
    Once established have them attend a short list of properties your considering, have them give you an assessment/opinion.

    Establishing a list of the right licensed tradies that are reliable can be time consuming, potentially costly, frustrating. Not having any idea yourself whats required leaves you open to deceit.
    Appointing a licensed PM to oversee the property can help with all this as they already have a list of tradies and handymen, but its still gunna cost you considerably.

    Personally in your case (depending on purchase re cost to reno), whilst it maybe out of your "current" price range, I'd be purchasing something that doesn't require major renos, is simple, preferably brick or concrete walls, perhaps a unit or apartment with low strata fees where the body corporate looks after all external issues.
     
  4. Nemo

    Nemo Well-Known Member

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    Just do some research. It's not hard to find a ballpark figure for those things. Painting isn't hard to do yourself if you are close by. Carpet get a quote from a couple of stores.

    Kitchen - send measurements to a kitchen company and many will send you back a design and price. Otherwise go flat pack and pay someone to install.

    Talk to ppl here and find some the names of good tradies or suppliers and ballpark figures for work done.

    I'm a girl, who would like to think I'm handy, but really I'm not - I recently renovated a 3 br house needing similar to what you described above. Cost with DIY painting was around $20k. Most of the work was done by tradies. I demolished kitchen, but new kitchen was installed for me.

    Happy to share how much things cost on my Reno if it helps, prices could vary a lot tho depending where you live.
     
  5. Nemo

    Nemo Well-Known Member

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    I'd be looking for a property that is structurally sound, doesn't need any major changes - perhaps is just grubby and needs a good clean, paint, curtains, flooring and new kitchen. All of these things are easy to do.
     
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  6. WattleIdo

    WattleIdo renovating Premium Member

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    @samiam - you can probably guesstimate the minimum costs before you even go in. It's not the cost that's the difficulty but finding the time and the people to do the work or to do as much of it yourself as you can.
    Local real estate agents might be able to put you in touch with some local handymen.
    I would recommend that you put as much time and effort into it as you can though. Otherwise, it's easier to just buy shares or govt bonds or gold etc.
    Good on you for going regional. Let us know how you go.
     
  7. Mick C

    Mick C Well-Known Member

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    House or unit? and size....can probably give you a rough est..
     
  8. samiam

    samiam Well-Known Member

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    Thank you all your advices and replies.
    @Pins
    I will look into it.
    @WattleIdo
    I will put more effort and time as I can, in realising this dream!
    I am in dilemma to invest on house needing renovation vs. already renovated house (I am aware of all pros and cons especially cost involved) since I am time poor - stuck at day job :((which is the main reason to become financially independent by investing!)
    @Mick C - its a run down 3/1/1 smallish house, need to repaint walls (inside/outside) and ceilings, replace carpets, and full renovation of kitchen (as it is non-existent) and bathroom. Thanks.
     
  9. samiam

    samiam Well-Known Member

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    Thank you for all your replies and advices.
    @WestOz
    Personally in your case (depending on purchase re cost to reno), whilst it maybe out of your "current" price range, I'd be purchasing something that doesn't require major renos, is simple, preferably brick or concrete walls, perhaps a unit or apartment with low strata fees where the body corporate looks after all external issues.[/QUOTE]
    @Nemo30
    I will take your advices seriously. I think I am attracted to the run-down houses because of the cheaper price range, but I agree, major reno would be a nightmare without well experienced handyman. I would save a bit more and start up with the property which does not need much reno.
     
  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Unrenovated. Generally better room to negotiate. Less chance of any premium you will be paying. Room to add value. Reduces risk.

    As long as its structurally OK (building and pest will reveal this) what you want to look for is older floors, paintwork, older fixtures and fittings, older kitchen/bathroom, older doors and window covers, These things can all be addressed in a renovation relatively inexpensively depending on the style/finishings you get. If it is rentable and a reno wont increase the yield you could even rent as is and in the future do a reno when wanting to sell or revaluate etc.
     
    Last edited: 6th Sep, 2015
  11. samiam

    samiam Well-Known Member

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    @WattleIdo - yes, I do. It was posted in renovation section first but because there wasn't any reply initially, I posted here again. to my surprise, I got many replies and advices, all are useful. :) apologies if I confuse anyone!
    @Leo2413 - thanks, Leo. these are my main "theoretical" reasons (thanks to the forum) to incline more on un-renovated. but considering all the advices and my situation, I think I will go for property with fair condition first. Once I get on ground of what I am doing in pi, then will move on to un-renovated ones.
     
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  12. jas

    jas Member

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    Hi,

    There can be valid reasons to buy an unrenovated IP, but if you are time poor I'd suggest you have enough on your plate that buying something that won't require work is a good idea.

    In that case, I would strongly suggest you both get a building inspection and then call the building inspector to chat. You don't want something that will give you maintenance headaches later.
     
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I hear what your saying @jas.

    What if you were able to buy it 40k under intrinsic value with scope to add value in the future. Is that not worth a few maintenance issues and perhaps a few extra hours of time?
     
  14. jas

    jas Member

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    Up to OP. Depends on their risk tolerance.

    For me and where I'm up to in my journey, it would be interesting. I'm doing something similar with my PPOR atm.
     
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