NSW Do I renovate before renting out my ppor?

Discussion in 'Property Management' started by Peace2all, 12th Apr, 2019.

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  1. Peace2all

    Peace2all Active Member

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    Dear PC Members,
    I am planning to rent my ppor and buy a new property. I renovated my bathroom 18 months ago. Incl an extra toilet. The house currently needs a good paint and the floor board makes all the squeaky sound and is really old + the carpet in the bedrooms are old as well.. Do I paint and replace the floorboards before I rent out. Its going to cost me 12K.( I think). I understand there is a high vacancy rate in Sydney and there is a house next to my street still not rented out. It's been there for more than 6 weeks in the market. I spoke to a RE agent a year ago and he said it will go for 440 per week but I doubt it now.
    I don't want to get my new ppor and unable to rent this one out and hence I am planning to do a reno.
    Any help in this will be highly appreciated.
     
  2. housechopper2

    housechopper2 Well-Known Member

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    Find a property manager you trust. Ask their advice. They may say do nothing or perhaps just paint it and leave the other things till later.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Replacing fixtures before you move out could mean no depreciation could be claimed. Building works ok
     
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  4. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Peace2All,
    could I suggest you look a the vacancy factor in your area?
    Have a look at what kind of places are in demand?
    What is your competition?
    How should you position your place in the market?
    Also it might be worth getting a depreciation report.
    I hope this helps
     
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  5. skater

    skater Well-Known Member

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    Fresh paint will make it more attractive, and the bonus is that paint is cheap. So, if it were me, I'd at the very least give it a paint.
     
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  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    From a Property Managers perspective, absolutely make those changes! However, just check with one of the accountants to make sure you're not losing tax benefits (i.e. depreciation) by doing it now.

    @Meristone.
     
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  7. wylie

    wylie Moderator Staff Member

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    Do the floorboards need replacement? If they just are squeaky it could be an easy fix. Some boards may need renailing and there are other easy fixes like sprinkle baby powder into the cracks where the squeaks are or packing a thin wedge between squeaky board and joist if you can reach the underfloor area.

    Floorboards would have to be very old (beyond sanding) and dangerous before I would think about replacing them.
     
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  8. Peace2all

    Peace2all Active Member

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    Thanks Terry. So replacing floor board and painting the house cannot be depreciated due to the changes which happened couple of years ago? Am I right? I though when the QS does his depreciation report he would take these into account?
     
  9. Peace2all

    Peace2all Active Member

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    Thanks Tom. Will this make any big difference in terms of difference in rent?
     
  10. Peace2all

    Peace2all Active Member

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    Thanks Wylie. I should have been clear. These are laminates and there are massive gaps between floorboards. Must be 15 years old.
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They would be building works
     
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  12. lightbulbmoment

    lightbulbmoment Well-Known Member

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    Paint Is cheap... your off ur head.
     
  13. Angel

    Angel Well-Known Member

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    When you do the painting yourself it is. When you already have a shed full of renovating tools it is.
     
  14. mikey7

    mikey7 Well-Known Member

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    I bet you buy from Bunnings. Can get paint really cheap from actual proper paint stores, especially when you need a lot of the one kind..
     
  15. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    I don't think @skater was necessarily meaning in absolute terms but "cheap" in terms of cost vs the difference it can make to the overall impression of the property. In other words paint gives you good bang for your buck. That is how I took it (and I agree).

    - Luke
     
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  16. skater

    skater Well-Known Member

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    This

    Or where you can get it at auction at 1/4 Bunnings price.
    No, I meant literally. Paint is cheap.
     
  17. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Ok.
     
  18. skater

    skater Well-Known Member

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    I do need to add, that I know where to get it at the right price. :)
     
  19. Angel

    Angel Well-Known Member

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    Back in the day, I picked up 40 litres of Masters highest quality Antique White for $160 = $40 per tin. We still have one unopened and have already repainted the interior of the largest IP with 30 litres.
     
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  20. skater

    skater Well-Known Member

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    Many years ago we owned a skating rink. We painted the interior yellow. I can't remember how many house reno's ended up 'skating rink yellow'.
     
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