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How much did this reno cost?

Discussion in 'Renovation & Home Improvement' started by Andrew H, 17th Dec, 2015.

  1. Andrew H

    Andrew H Well-Known Member

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  2. Travelbug

    Travelbug Well-Known Member

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    Other than the bathroom the rest is purely cosmetic. One side of the kitchen done with new splashback. Paint throughout and venetians and floor

    Quick, easy reno. If they did the work themselves- $10K or less? But don't forget you have to factor in buy and sell costs, holding costs and CGT. Good profit still.
     
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  3. rhinsor

    rhinsor Well-Known Member

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    DIY $15-20K
    Professionals $30-40K
     
  4. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    I second that.

    A big factor in that reno is the cost of the flooring, could have been supplied for $20 sqm - $120 sqm.
     
  5. rhinsor

    rhinsor Well-Known Member

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    Looking at the picture it looks like single sheet vinyl flooring but seeing there is new skirting board I would say it is at least laminate. That floor can make a 5k difference but I don't see them spending top money for a cheap property like that.
     
  6. Travelbug

    Travelbug Well-Known Member

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    We do a full reno- new bathroom, new kitchen, new carpet and all flooring, paint, maybe remove a wall to open it up etc for $15K. We pay a tiler, electrician and plumber and do the rest ourselves.

    They didn't change the carpet. Only put one kitchen bench in. No appliances. Even the bathroom already bad the vanity. $20K is over the top unless they used more tradies.
     
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  7. rhinsor

    rhinsor Well-Known Member

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    New bath, blinds, outside walls and floors painted, gutters painted or replaced. Outside lighting replaced.

    Hot water system also looks new.

    Fence..
     
  8. Vacant

    Vacant Well-Known Member

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    Much better listing agent makes a big difference too. The first listing looks like some of the photos were taken with a camera phone.
     
  9. Andrew H

    Andrew H Well-Known Member

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    i can't see it being over 15k if they did a lot themselves even still there wasn't a lot of new appliances, that fence would only be 1k in materials (i just did one) but yeah as soon as you get a lot of trades in i wonder how much that blows out. I would really like to know the cost of the flooring it looks great
     
  10. EN710

    EN710 Well-Known Member

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    My questions would be how much profit do they make?

    Original 235000
    Upfront cost 10000
    Holding cost (interest rate 5% for 80% LVR) for 5 months $4000
    Rates etc assume 1000
    Renovation 15000
    Total buying cost 265K

    Agent fees (assume 2% of selling price) 6700
    Sold price 335000, gross profit approx $60-63K before CGT?
     
  11. Andrew H

    Andrew H Well-Known Member

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    yeah they are good assumptions @EN710

    can they class this as a PPR to avoid CGT? maybe @Terry_w might be able to help there.
    only other thing i can think of is the Tax deductions they can make during this time, which i assume are bugger all as the property wasn't up for rent at all.

    If they held onto and rented it for 12 months to get the CGT discount and 12 months worth of tax deductions i wonder how much more attractive this would be to the bottom line? @Travelbug do you have expeience there?
     
  12. ross100

    ross100 Well-Known Member

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    That looks like a good profit in 5 months to me.
     
  13. ross100

    ross100 Well-Known Member

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    what have they put in on the floors outside in the pagalo area, looks quite good
     
  14. Travelbug

    Travelbug Well-Known Member

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    Assuming your profit of $60K (there's also solicitor costs to sell plus I would count interest on 105% as that's how much money you have in the project.

    So assuming a 30% tax rate that's $18K CGT. If they held it for 12 months they'd save $9K so unless it was CF+ that's a bit of mucking around to save less than $9K. Tenants could be bad, things could break down plus you have another years insurance etc. they'd only have to actually hold it for another 7 months though.

    I would have wanted to do the reno in a lot shorter time myself. That's a long time for a non structural reno. We like to be in a and out in 5 weeks.
     
    Andrew H likes this.