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Would $60k be enough to renovate this place?

Discussion in 'Renovation & Home Improvement' started by D'Mo, 24th Aug, 2015.

  1. D'Mo

    D'Mo Well-Known Member

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    Contemplating doing a 'nice' renovation on this property & using it as our PPOR..

    The downside, it's only got 1 bathroom.. However, would possibly look at turning the 'bar' into an ensuite


    Just wondering if 60k is realistic to turn this place into a decent property that looks nice & 'modern' again?

    https://m.realestate.com.au/property-house-qld-algester-119288991
     
  2. Kael

    Kael Well-Known Member

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    Congrats on your recent purchase of the place :)

    I'm guessing you'd convert the "family room" into your Master Bedroom and then make the bar into your ensuite? I'm interested to see what others think. From looking at it, I'd say $60k would be enough BUT I've not done any proper renos as of yet.
     
  3. Raydar

    Raydar Well-Known Member

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    All depends on what you want to do? If you have firm plans you will have a better idea of costs.
    Generally, new flooring (get rid of the combo tiled and carpeted area), paint and new kitchen. Then yes 60k would be plenty.
    Have you considered altering the laundry to be combo laundry/2nd bathroom. Shower and WC. Seems just big enough.
     
  4. D'Mo

    D'Mo Well-Known Member

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    Thank you sir :)

    Ideally that would be the plan, but I guess it all depends on if there's a tap/ plumbing in the bar :/
     
  5. D'Mo

    D'Mo Well-Known Member

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    That's actually a good idea .. Is it normally better to have an ensuite tho? Or just having 2 bathrooms good enough ?
     
  6. Raydar

    Raydar Well-Known Member

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    I think that an ensuite will probably add a little more value, if you were looking to buy it as a PPOR. But as a renter 2 bathrooms are always better than 1.
     
  7. Raydar

    Raydar Well-Known Member

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    If you can get away with not spending the whole 60k, you'd be better off. In the end if you end up with a 3x2x1. You have still increased your rental yield.
    It comes down to the opportunity cost of what else could you do with that money. Say you only spend 20k, your have 40k to your next IP. After the work done you could revalue and extract equity, if possible. Move onto another IP. You also have to ask yourself, would you improve the value of the house more than 60k?
     
  8. D'Mo

    D'Mo Well-Known Member

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    I hear what your saying .. I'm trying to work it out so I don't over invest & not get anything in return .. But on the other hand, my outlook on life is changing & im thinking about living in some comfort rather than investing and having too big a debt.

    This is just an idea so far and appreciate the opinions.. Gives me more to think about :)
     
  9. skater

    skater Capitalist Premium Member

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    Are you wanting a 3x2 or are you wanting a 4x2, or even a 4x3? I can see plenty of scope to adding bathrooms, but since it's on a slab, they may come at a very large cost.

    The laundry has already been mentioned, as well as the bar (using the family room as a bedroom, but I can see another which might just fit into the too hard basket. Looking at the layout, you have a linen closet opposite the first bedroom. You could alter the entry into bed 1, wall up the linen area, and squeeze a small ensuite into there. Of course, you'd have to open a doorway through the lounge area to access the bathroom & other bedrooms.
     
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  10. D'Mo

    D'Mo Well-Known Member

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    I'd like to keep/ make 4 legit bedrooms and have 2 bathrooms if at all possible ..

    I 'kind of' understand what you're saying but if I'm understanding you right, wouldn't the linen closet be a little small for an ensuite to bedroom 1 ?
     
  11. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    As a general rule, you should generally limit your reno spend to 10-15%(max) of the purchase price. So $40K is OK and $60K would be the (max) for a $406K purchase before you start overcapitalising, which you may choose to do on a PPOR.
     
  12. skater

    skater Capitalist Premium Member

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    No, it would be bigger than just the linen cupboard. If that plan is remotely to scale, you would easily fit a shower cubicle a toilet and a small vanity in the new room that is made. Take the doors off the linen closet, put a wall on either side, adjoining the bedroom. When you enter the house, if you look straight ahead, instead of seeing a hallway, you would see a wall, and have to turn to the right to enter the lounge room.
     
  13. Esh

    Esh Well-Known Member

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    I like the way you think @skater
     
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