Where to start with full renovation and caveats?

The site and rebuild are worth considerably more than what I spent. ROI is < 2 years.

 

Sounds like you factored in the cost into a feaso

 

Can probably do that as well, there's still plenty of life left in that kitchen.

 

I am often told that I know ***k nothing, but I can assure you, I know ***k all.

 

Unliveable mean, it is very dirty everywhere. Every ceiling is leaking and cracking, many corners are cracking, the kitchen are so dated and nothing in the kitchen works, many windows can’t close and the painting on the windows are pealing, all the fences look like they are falling, the carpets are the super old and disgusting, the laundry is so bad that you can’t recognise it is a laundry. all the cupboard are super dirty. They even have build in diner table in the kitchen, of course cracking and old too.
the list can go very long.
The house was empty for a year since the elderly owner left. I suspect this owner never do any work in the house... I think the only things in the house that are good are the bricks and the trees in the backyard ( thanks to the power of nature)

I can’t live this house without renovating it and my standard is pretty low and I had lived in the **** and cheap share house in my uni days.

I like the location and the fact it is a corner block - full of potential but -
I want to live in that location and
I want to build two dwellings to realise the “ potential” in the future depending on the market and my financial situation of course.

Maybe I can keep it longer than 10 years and realise the “potential” later, just justify the money spend now???

After it will be my primary residence. Can’t live in current condition.

 

On the condition that it is totally unliveable, what are the better ways to deal with it? Keep it for longer?

the plan to build two and sell for good money and use the money to further invest

 

Imo then its not solely an investment decision but also a life factor decision. How much are your willing to spend to enjoy your time there plus make it a worthwhile business decision? Only you can know the answer to that.

Maybe a middle ground would be to make it liveable by doing a basic renovation. Also, you'd want to be pretty sure of the development potential and not just hope you can do it.

 

The house is in general residential zone and have significant landscape, getting rid of the trees maybe an issue, but there are subdivision precedents nearby. There easement on the side boundary. That can be used to build carport or just landscape.

When investors buying subdivision “potentials” , do they normally go for potential advise? If they do, who they need to talk to?
Thanks!

 

Me personally, I wouldn't buy any potential development site without the once over from my town planner. Nearby precedents is not gospel. Also significant overlays can cause issues. Basically, I ain't buying without my TP giving me the go ahead.

 

I have never heard about town planner. Thanks for mentioning it.
How much do they normally charge to check if the block can really be use to built 2 dewelling? Do I just go to hi page to find a town planner?

 

Many TPs will be happy to have a quick look and give you general feedback for free, hoping that if you go ahead with it you will engaging them for the town planning. I have engaged TPs on this basis and usually always engaged them if i went ahead with the purchase. I have also engaged them to do a more detail investigation where I usually just pay for their time on a per hour basis.

 

OK, you see unlivable, I see opportunity and a good clean.

Would I live there? Well, not today, I'm at the end stage of my investing, but if I were starting out, heck yes. I've lived in worse.

 

Imagining your bathroom in the early day.....

 

A plumber, a new toilet seat & a damn good clean & she'll be right.

The bathroom in our first home was tiled with navy blue tiles on the floors, the (home made) vanity and the shower cubicle. The rest of the walls & ceiling was covered in wood paneling. All the extra 'bits' were bright red. Towel rails, soap holders, curtain that was under the home made vanity etc. It was dreadful, so that picture after a good clean and disinfect, would have been much nicer.

 

I have never reno'ed a house but a full house renovation (internal and external) would involve below

1. Flooring (Tiles) Labour - Approx. 100 sqm floor area - 8000$
2. Tiles cost (National Tiles) - 120 sqm floor area - 50$ - 6000$
3. Any existing floor tile removal - 5000$
4. Paint (interior and exterior) - Double storey house - 20000$
5. Kitchen - 40,000$
6. LED down lights (70$ per globe) - 50 globes - 3500$
7. 2 bathrooms renovation (tilling, new vanity, new shower base, water proofing) - 30,000$
8. Floor boards / carpets in bedrooms - 10,000$
9. Outdoor Deck with pergola - 25,000$
10. Heating / Cooling / air con systems - 10,000$
11. Swimming pool - 50,000$
12. Front fence and side fences - 10,000$
13. Landscaping - 10,000$

All up, 200K-250K, as I said I have never reno'ed a house before however I have picked these numbers based on friends and family renovating their houses (not the entire house but components of it). I have just put it all together. Most of my friends and family are in SE Melbourne suburbs (20-28 km from CBD)

I would let experienced people correct the above and call out for any obvious variances.

 

Your friends are obviously not investors.

Those figures are crazy.

 

Yeah I'd never put a 40k kitchen in an IP unless it was supposed to be a premium rental.

 

For an average IP they certainly are.

 

This is for PPR, not IP

 

I've got no words for this one. Sorry!