Complete Renovation and possible House Raising

Discussion in 'Renovation & Home Improvement' started by ann_hv, 18th Jan, 2016.

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  1. ann_hv

    ann_hv Member

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    The picture I have provided are the day when we first inspected the property (after BA purchased for us). It's really difficult to tell at the moment is underneath is habitable, just too much of stuff sitting in this space.

    But thanks for giving this thought that there could be sufficient height for "rumpus"...
     
    ann_hv, 20th Jan, 2016
    #21
  2. Bran

    Bran Well-Known Member

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    Look past all the crap, and the bones look pretty decent to my quick glance earlier. Bit of paint, even some fresh gyprock. Potentially wall off a space down there +/- bathroom. Make it a rumpus that looks a lot like a bedroom. Wah lah.
     
    Bran, 20th Jan, 2016
    #22
  3. ann_hv

    ann_hv Member

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    The house underneath is just mess at the moment as you can see in 2 pictures I posted above. Same is the condition in 3 bedrooms upstairs. We have absolutely no idea how best we can utilise underneath area.

    The seller is now starting to remove his belongings and hopefully we will have an access to house in next 4-5 days so we get better idea and can have clear pictures to see potential there.
     
    ann_hv, 21st Jan, 2016
    #23
  4. ann_hv

    ann_hv Member

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    Hi Bran, the B&P inspection suggested some past termite damage but no live termite found (invasive Pest Inspection was carried out as initial B&P suggested termite damage at various places). The B&P inspector, a builder I had called to quote and my BA - all have advised that this house should turn out to be beauty after removal of junk and repaid/renos. Hopefully we dont get any major surprises when we start renos.

    Thanks.
     
    ann_hv, 21st Jan, 2016
    #24
  5. willair

    willair Well-Known Member Premium Member

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    At least it's hardwood,the walls maybe are fibro the way the walls are framed,removal of that can be costly,also the plumbing going into the drains are the old gal and brass,so the rest could be the same old gal pipework that alone can bump up the reno costs,good luck..
     
    willair, 21st Jan, 2016
    #25
  6. wylie

    wylie Moderator Staff Member

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    If the reno/repairs might cost $100k without raising it, look at the rental income you would get with a raised house (two levels of habitable rooms) compared to leaving it "as is" and modernising upstairs only. Then look at cost to do a two level new build, including cost to demolish.

    We were quoted less than $300k for a two level new build a few years back.

    My friend rents out new builds in Cannon Hill for $750 per week (four bed, three bath, nice spec) and we are getting $580 per week for an old but neat and tidy queenslander (three bed, one bath, nothing flash).

    To build under will cost us probably $200k+ and we will likely get rent of $750 per week for the renovated four bed, 2.5 bath finished reno. Back of envelope, quick calculation is that I need $192 per week at 5% interest rate to pay back the work involved to get that higher rent. It doesn't seem worth it.

    At first glance it seems the extra rent will not pay for the reno, but the rent we are getting now is higher than what we would get if these tenants left so I believe $550 is probably about right now, which means the reno at $200k may just pay for itself.

    We "must" move this house on the block so the big question for us is whether to build under or not. I don't want to batten it in ($5k approx) and add new stairs x 2 ($300 per tread + $1k per landing ballpark figure from a builder friend) only to have to rip off the new stairs if we decide to build under down the track (in which case we would add internal stairs with front door downstairs.

    For us, we cannot demolish the house so we must weigh up the figures carefully.
     
    wylie, 21st Jan, 2016
    #26
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  7. ann_hv

    ann_hv Member

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    Hi Wylie

    $100k was the quote given by a construction company / builder. If we get it done by tradesman and project manager / builder who can act as Project Manager, we could finish all under $80k.

    The incremental expenses should put us in positive cash flow and straight capital build up of between $30-$50.

    Knocking down and rebuild is not an option. Will definitely consider granny flat in 2-3 years time.
     
    ann_hv, 21st Jan, 2016
    #27
  8. Azazel

    Azazel Well-Known Member

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    Are you able to do a granny flat out there?
    Still BCC there isn't it?
     
    Azazel, 21st Jan, 2016
    #28
  9. ann_hv

    ann_hv Member

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    Yes, it appears we can do granny flat. But no plans of doing right now. In 2-3 years time.

    Yes, Brisbane City Council area.
     
    ann_hv, 22nd Jan, 2016
    #29
  10. wylie

    wylie Moderator Staff Member

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    You cannot lease out a granny flat separately (legally).
     
    wylie, 22nd Jan, 2016
    #30
  11. ann_hv

    ann_hv Member

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    Thanks for letting me know.
     
    ann_hv, 22nd Jan, 2016
    #31
  12. Azazel

    Azazel Well-Known Member

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    Yeah, I was pretty sure they were against it.
    Do they have some inside knowledge that will change in 2-3 years?
     
    Azazel, 22nd Jan, 2016
    #32
  13. wylie

    wylie Moderator Staff Member

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    I've heard they are cracking down on it, so cannot imagine they will change their minds, but you never say never...
     
    wylie, 23rd Jan, 2016
    #33
  14. fumid

    fumid Well-Known Member

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    Any update now?
     
    fumid, 29th Oct, 2016
    #34
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