TO RE-ROOF OR NOT

Hi all,

We have recently settled on a new property that we new had some roof issues. I have been speaking with a roofing contractor and he has given me a couple of options;

1 - Spend $700 on a replacing the existing nails with screws and cleaning gutters of debris. He can not guarantee that this will last for any significant amount of time. It will need replacing in the short to medium term (1 -5 years).

2 - Complete re roof and gutter with insulation on the under side of the roof. $15,000. Seems fair and I have spoke to friends in the industry and they feel that it is a good price.

Personally my wife and I are leaning towards the complete re-roof as option 1 seems to me to be throwing good money after bad. We have the funds for the repair as surplus in our LOC for the property. Any advice would be greatly appreciated.

 

Is this an IP? If it is and it's not some absolute blue chip gem I would go the cheap option and kick the can down the road for a while longer.

 

Hi Biz, yes it is an IP. Certainly not blue chip (Ipswich) but it is a medium to long term hold for us at this stage.

It is in need of a full reno over the coming years. Would be good to not have to spend the $$ now but they will be spent eventually and I would not want to spend considerable money internally with a potentially problematic roof. The problem with spending the $$ now is that it does not add $$ to the rental return.

 

For tax purposes the full replacement roof may take 40 years to claim! Check with your accountant first.

 

also keep in mind potential repercussions from insurance pov for not fixing the roof in the event of a storm or major leak or collapse etc

are the issues purely structural? aesthetically would replacing it make it significantly more appealing?

I've seen some big changes from a roof being restored and a property being painted externally

 

What is the roofing material ?

We had a (huge) asbestos roof in Brisbane painted with a waterproof membrane a couple of years ago. We are hoping it gives us another 10 -15 years.

 

Hi Sanj,

There is nothing structurally wrong with the property/roof. It is more that the existing roof (galvanized steel) is rusting through and is soft in parts. Aesthetically it will make a difference albeit not huge due to the pitch and direction. We will tie it in with a repaint over the coming years (timber weatherboards), which was the plan all along. I do not want issues with insurance when the roof invariably does fail during a storm etc.

 

Existing material is gal steel. Will be getting replaced with full colorbond (Slate).

 

Will do. I am more concerned though as to the ongoing condition of the property. Deductablity/depreciation are secondary to us in this instance.

 

Yep I agree that this will not be considered a repair and it will have to be depreciated at 2.5%/annum.

The price does seem reasonable. New gutters alone would be $4-$5k.

 

Is it all rusting or just some sheets? Because if just some sheets you could just replace those with new gal sheets and do the screws on the rest. You can have any small holes fixed at the same time.

 

It is rusting through. The gal is soft and on its last legs, gutters and cappings tusty and soft also. A couple of sheets were loose and in a bit of dis repair. The roof and gutters have be re done now with colorbond and am really happy with the results.

 

Repair it now, rent it out then replace in 1-2 years and claim the scraping value?

 

If you are considering spending that sort of money I would get a couple more quotes first. There may be a slightly cheaper but satisfactory option.

 

I have spoken with some friends who are builders where i live and they think the price is more than fair. The job was completed last week and we are stoked with the results. We plan for this to be a long term hold so decided to bite the bullet early and not have to worry again!

 

A house a few doors down had a new roof put on yesterday. It looks amazing.

 

New colorbond roofs really add a certain flair.

That old gal stuff just doesn't last and there's no point wasting money on it imo.

 

I would have gone cheaper option, however I needed to replace roof on IP and no insurance company would touch me unless this was completed, more heartache if damage from storms etc, play it safe IMO