Join Australia's most dynamic and respected property investment community

TO RE-ROOF OR NOT

Discussion in 'Repairs & Maintenance' started by Mick Butterfield, 21st Jun, 2016.

  1. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    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.
     
  2. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,473
    Location:
    Sydney
    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.
     
  3. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    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.
     
    WattleIdo likes this.
  4. headsonbeds

    headsonbeds Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    114
    Location:
    Brisbane
    For tax purposes the full replacement roof may take 40 years to claim! Check with your accountant first.
     
  5. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,142
    Location:
    Perth
    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
     
  6. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    392
    Location:
    Sydney
    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.
     
  7. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    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.
     
  8. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    Existing material is gal steel. Will be getting replaced with full colorbond (Slate).
     
    WattleIdo likes this.
  9. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    Will do. I am more concerned though as to the ongoing condition of the property. Deductablity/depreciation are secondary to us in this instance.
     
  10. kitdoctor

    kitdoctor Well-Known Member

    Joined:
    31st Jul, 2015
    Posts:
    66
    Location:
    Darwin
    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.
     
  11. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    824
    Location:
    Melbourne
    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.
     
  12. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    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.
     
  13. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,100
    Location:
    NSW
    Repair it now, rent it out then replace in 1-2 years and claim the scraping value?
     
  14. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,120
    Location:
    FNQ
    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.
     
  15. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    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!
     
    Marg4000 and WattleIdo like this.
  16. WattleIdo

    WattleIdo renovating Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,809
    Location:
    Central West NSW
    A house a few doors down had a new roof put on yesterday. It looks amazing.
     
    Mick Butterfield likes this.
  17. #house

    #house Active Member

    Joined:
    1st Feb, 2016
    Posts:
    26
    Location:
    Brisbane
    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.
     
    Mick Butterfield likes this.
  18. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,345
    Location:
    Perth, Melbourne, USA

    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