Queenslander Reno

Nah just lots of scrubbing. Had to use a razor blade to get all the old silicon off too. It came up alright, it's a metal tub too, so pretty happy it was in okay condition.

 

Looks great like a whole new house/ rooms at this stage. I love the DIY stuff

 

Added some bling to the gable.

 

The house looks great Tim. What sort of budget are you anticipating for the reno, if you're comfortable sharing?

 

$25 000 approx. for the reno. Give or take $2000.

Add up all the other costs for the house: lets say it's about $85 000 total cost approx.

So that's for around 240m2 of house fully renovated.
1 revamped kitchen
1 totally new kitchen
1 dining area
2 lounge rooms
6 bedrooms
3 bathrooms

So that's a house for approx. $355m2

A normal build is about $1500m2

So for a 240m2 house you would be looking at $360 000 normally.

So I'm paying about 23.6% of the normal cost of a build.

Total cost of the property is $525 000, that's on a 1012m2 block of land 10k's from Brisbane cbd, also has a granny flat on it that's around 70m2.

Should be worth about $720 000 after I'm done. So would have created $195 000 in equity. The really cool thing will be the yield. I should see rental profit after all costs at $21 580 per year. We've been getting an average of 5% pa capital growth in the last 3 years too. And it looks like that's going to continue if not increase over the next few years in brisbane. So that's capital gains of around $36 000 per year.

So all up this one property is looking at generating an initial sweat equity gain of $195 000 and then a yearly profit of around $57580 per year with rental profit and capital gains combined.

Makes you love investing doesn't it.

 

Wow. So impressive again Tim!

 

Did you think about jacking it up a storey? Would have increased costs, but another level of bedrooms/living...

Never mind, I just saw on the old post that its already 5 or so bedrooms. I thought I read above that it was 3.

 

Where do you get the time, TIm? Arent you still renoing your PPOR?

 

I can only have a maximum of 5 individuals renting in Brisbane City Council on the one tenancy agreement. So I'm better off doing things like turning extra rooms into ensuites and walk in robes rather than adding more rooms which will be useless. Plus the pitch of the roof is so high and the interior ceiling height is so high at 3.5m and it has to be 1.2m off of the ground because of a nearby creek, I would only be able to do a bottom floor at around 1.7m ceiling height...(not possible)

There are 6 bedrooms in the main property, 1 bedroom in the granny flat and 2 small rooms in the flat that I would classify as "office" sized.

 

I work 4 days a week at my job. My job involves working weekends. So I just took all my weekday shifts off for a month and still worked the weekends because you can't really make too much noise renoing on the weekend anyway.

So that gave me 20 days in the last month to work on the house. I'm kind of glad I'm going back to working a few days during the week again at my day job because working every single weekday on the house was wearing me out.

Generally I'll get 3 days a week I can work on the house. Plus a couple of mornings before I head to work.

But yeah basically I just work every day and don't take any holidays. Been doing that for a couple of years now.

As soon as I'm done with this project I'll be back into my PPOR. I've got a 280m2 approx. extension to build.

Then I've got to raise and reno 150m2 of an IP and build 150m2 in underneath it.

But that's all over the next couple of years.

I'm not too sure what I'm going to do after I finish all these project. Won't know what to do with myself

Wife is pretty sick of all the reno's now though haha It's going to be difficult to convince her to let me buy another reno project after I finish with all of these ones.

 

Great work! Those numbers are unreal.
are you considering moving into the project management side of things. You have all the numbers under control, you just need to tell someone else to do the hard work! I know the numbers will suffer by not being on the tools but you can concentrate on managing multiple jobs plus work.
What are the man hours for these jobs? Have you looked at what the costs would have been to subby out? Interesting exercise.
And i reckon the Mrs might agree with me!
..and i know you probably enjoy getting your hands dirty!

 

I enjoy it when I'm not exhausted. So hopefully cutting back to 3 or so days a week on the reno will give me enough energy that I enjoy it again. It was good the first couple of weeks though.

I just can't afford to sub contract out the work unfortunately. Maybe one day I'll have the working capital where I can manage it. Man hours for a house reno like this...probably between 900-1100 hours to get the job done.

I'm actually looking at getting a guy I know to help with some labouring at $20 an hour a couple times a week. Budgeting $2000 for that in the reno.... that's a pretty big step for me, feels like pulling teeth paying someone else to do simple jobs that I know I could do. But I'm losing money every week that place isn't rented fully...so really getting the job done quicker by paying for help balances out because I get rental income quicker.

But yeah I'm loving the numbers too. This one has worked out well considering we blew $40 000 in holding costs and trying to get the place subdivided but in the end getting rejected. But alas, I'll make some lemonade out of those lemons

 

I thought it must have been something like that. Where are you buying all of your products? We are doing a kitchen and bathroom soon, have bought most, but you seem to be able to get things done for relatively little cost - all your labour I guess. Also want to build a deck soon.

 

I spend a lot of time on gumtree lol.

For example I just got a leadlight front door for the house from gumtree for $150 in very good condition. Woodworkers charges $900 for the same door!

 

What jobs do you have that you find tricky or a pain?... Now i know it hurts to pay someone but... It can help you along.
When we were doing our extension and kitchen i was going to do everything! With the list growing and needing to get things moving the Mrs started to call a couple of guys to take done off me,i was like you and it hurt but looking back it took a big load off.
not sure what rent your missing out on but as a little exercise I'd say 2000/month. Your only there 3 days so that's 3-4 days there's no one there. so the savings your making doing it yourself are "lost" to not using the full week. Say 1000/week lost.
That would get you a tradie @50/hr for 2.5 days (8 hr day).
The numbers may be off or not to accurate but you can work that out
Why not find some jobs your not looking forward too, for me it was painting some gumtree French doors, custom pantry shelving and rendering. I was ready to do all jobs, but the painting i was putting off,i prepped them but never got to painting. The pantry was fiddly but doable. the Mrs called around and then we just rounded the work off to a days worth, do the painter finished off done eaves to and the chippy did some skirts. Stuff i was capable of but it was a load of my back.
Labouring is good to palm off but look at stuff your not do handy with out that someone could do more efficiently

 

Im getting the labourer to do all the no more gaping of the vjs, thats a rubbish job. And also getting him to nail punch and putty the floorboards. Probably get him to do some painting too. Im fine with the technical jobs. And those are the ones that cost a lot so i might as well spend my money on those jobs.

 

Finished one room completely. Yay.

 

Nice work Tim, looks great.

 

Nice work mate.

 

more progress