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Removing asbestos, how much of a value add?

Discussion in 'Renovation & Home Improvement' started by Tim86, 20th Jun, 2015.

  1. Tim86

    Tim86 Well-Known Member

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    Take this house for example: http://www.realestate.com.au/property-house-qld-salisbury-120045973

    I've got a very similar IP. It's not renovated as fully as that house though.


    I'm planning on raising my similar IP and building in underneath.

    While I'm doing all that work I'm considering ripping the asbestos out upstairs and re sheeting with gyprock.

    (1) I'm wondering how much value would replacing those internal asbestos walls with new gyprock walls actually add?

    (2) Any ideas on how much it would cost just to rip out that much internal asbestos? (I can re-sheet myself)
     
  2. S.T

    S.T Well-Known Member

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  3. bob shovel

    bob shovel Well-Known Member

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    have you asked perp for permission?:D
    now that you mentioned the "a" word it will get crazy in here.
    research the qld regulations, you seem like smart guy so you can work it out. from memory 10m2 is the magic number, you can do it yourself to a certain amount, but for your amount find a GOOD asbestos guy, not a fear mongering one.
     
    Last edited: 20th Jun, 2015
  4. bob shovel

    bob shovel Well-Known Member

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    oh yeah, not a huge money spinner but a good selling point. perhaps add <10k to sell price to cover the work
     
  5. Tim86

    Tim86 Well-Known Member

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    Don't poke the bear! :)
     
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  6. Tim86

    Tim86 Well-Known Member

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    I couldn't find the environmental ruling?

    So the gist of what I read was that your interest payable during the period of removing asbestos is deductible from your income.

    Isn't the interest on a rental property always deductible from your income?

    What am I missing?

    Would be cool if lost rent was also deductible from my income, but I can't see anywhere where it is really saying that.

    Thanks
     
  7. bob shovel

    bob shovel Well-Known Member

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    look into ohs regs and codes of practise. enviro covers disposal side but the tip will kbow how to sting you! double wrap everything with so many micron thick bags, blah blah blah
     
  8. S.T

    S.T Well-Known Member

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  9. Tim86

    Tim86 Well-Known Member

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    Okay, so you could claim the interest on the property as per usual, but also claim the cost of removing the asbestos. So that might mean if it costs $8000, that's $8000 off of your taxable income for that year....?

    I'll ask my accountant friend about it. :)
     
  10. S.T

    S.T Well-Known Member

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    Yeh thats how I read it, one of my places has asbestos but not in a position to remove it all yet. I'll definitely go for this as a deduction when i do though.
     
  11. bob shovel

    bob shovel Well-Known Member

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    are you planning on selling it when finished? is this the house you just moved (i dont think so)
    if your hanging onto it i wouldnt worry, but if you have it ready to strip out and reno then srll could be a plus
     
  12. Tim86

    Tim86 Well-Known Member

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    Going to continue to rent it out. But I also want to make it all fancy so it's worth more in the banks eyes so I can refinance. I just feel like it's polishing a turd if you do everything fancy but the structure is ****ty asbestos.
     
  13. bob shovel

    bob shovel Well-Known Member

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    are you sure its asbestos?
    why not sheet over it ? save a fortune and safe! yeah just sheet over. youll have to muck around with cornce and skirts either way.
    is it the stuff link in the link with the beading stuff on the joints?
     
  14. Tim86

    Tim86 Well-Known Member

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    Yeah was considering sheeting over it. The sheets have had the beaded joint removed and a dodgy plaster job on the joins instead. It would have to be asbestos.
     
  15. bob shovel

    bob shovel Well-Known Member

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    check it might be the old horse hair stuff on battens, either way just sheet over it! good insulation too!
    old mate landlord of the place were in now told me what he did, which was re-sheeting but kept the original door frames, picture rails etc and put them back on, including the large skirts. at first look you cant pick it, but up close you can see. he did it to keep original and save $$. they have had a hard life to for a 100 year old place
     
  16. Tim86

    Tim86 Well-Known Member

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    No not the horse hair plaster.

    Maybe i should just gyprock over the top...
     
  17. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I think the Mythbusters proved you could actually do that!
    As for your original question - how much of a value-add? Not much would be my response. It may make it easier to sell at some point, but there are plenty of houses in Australia that contain asbestos (which is safe enough if you leave it alone and don't sand it, break it etc).
     
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  18. Tim86

    Tim86 Well-Known Member

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    At the lower end i would agree with you. But if im trying to make a house worth $700k in brisbane, then surely asbestos walls would turn a lot of top end buyers off to the point it eventually impacts on price.
     
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  19. bob shovel

    bob shovel Well-Known Member

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    are trying to make it worth that much? either way re-sheeting is hard to pick so top end buyers or low end shouldn't matter, its all covered and safe
     
  20. Tim86

    Tim86 Well-Known Member

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    Yeah it should be 3 times bigger than the house next door currently selling for $520k.