澳洲Australia property Bright aqua carpet... | Sydney


在澳大利亚 Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit


We have a 30yo red brick/tile single storey IP amongst huge expensive houses with million dollar views over Perth that is due for new tenants soon.

Unfortunately the property has perfect-condition BRIGHT AQUA axeminster carpet through 50% of the house (hallways and living areas).

My problem is my penny-pinching partner. He doesn't seem to understand my beliefs that "if I wouldn't live with it then most tenants probably won't either" and "you have to spend money to make money" Especially in this location.

I say get rid of the carpet and put in some inexpensive, stain-resistant neutral carpet. He says keep the carpet - it's in good condition and the current tenants didn't mind it (never mind they rented due to parents living next door and the rent was about $20-30/week under market value!).

On top of this, working against the property is
* lack of fencing (preventing tenants with pets/toddlers.)
* hardly any landscaping on 1/2 acre block - backyard is all natural bush - no grassed areas for children, etc.
* lack of parking - has a long 45 degree angled driveway with single carport at the top and small parking space towards the bottom.
* dated, tiny kitchen - spotlessly clean and perfect working order but unattractive and cramped.
Most of these I would also like to fix.

I estimate that I could improve these problems for as little as $10 000 - $15 000 and improve the attractiveness to potential tenants, the appeal to a broader tenant base, the rental return and the capital gains significantly.

Any opinions?

Am :)  

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Cmon, Aussieamp......

Buy some Skyhooks LP's, get some bright red bean bags and a few lava lamps and you'll have matched your decore perfectly with your carpet!!! :)

If your planning on holding your IP for any length of time I would definately say go for it. You've answered your own question in your post about capital gains. You could use this gain after a re-val to fund the purchase of more IP's. You'd just need to look around your area for similar properties and see what values they attract.

Plus all of this new stuff you install is depreciable, so it won't hurt come tax time and if you can up the rents you may re-coup your costs over time.

How much land is your place on? You may be able to add significant value buy doing a development.

Have a search for michael croft and read some of what he has to say. His ideas are amazing about renno'ing within a budget. Keep an eye out for his bathroom sink idea!!!!

Good Luck!  

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Your'e an ideas man Captain !

some numbers for cashflow (assuming you refinance to pay for the improvements)

$15000 improvements
$975 /year additional interest payments
$20 per week rent increase ( +$1040 / year)
$2 / week increase in PM's fees (- $104 / year )
Depreciation say $500 per year over xx years (depends on the items you do, floor and window coverings depreciate over 9 years or so - Fixed items (kitchens ...) depreciate over 40 years.

-$39 before tax
+$253 after tax  

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Aussieamp,

Just to add some more weight to this debate (I hope your partner reads the forum, the connection fee is very cheap!)

You should definitely consider redoing the carpet & fixing some of the other issues to maximise both the rental value and the property's value.

Do the sums with your partner, as WillG illustrated, I'm sure your partner will agree that you make more money on your property by spending more money.

Rather than guessing which improvements will add the most value, why not have a few Property Managers assess the place for rental value right now & have them tell you which improvements will push up the rent.

And if you want to see a version of Michael Croft's vanity & bathroom ideas, we borrowed them in a recent reno - snaps here: http://www.somersoft.com/forums/showthread.php?s=&threadid=8029 and here: http://www.somersoft.com/forums/showthread.php?s=&threadid=8026

Cheers,

Aceyducey  

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If the carpets really in good nick, you may want to look at carpet dying. Turn it into a darker (more subdued) shade of blue perhaps.

I haven't looked into it other than knowing it exists and a bit about how it works. Basically, you cannot go lighter, but you can go darker or sort-of sideways.

May be an alternative. No idea on costs - sorry.

Anyone know more about this?  

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Originally posted by aussieamp
We have a 30yo red brick/tile single storey IP amongst huge expensive houses with million dollar views over Perth that is due for new tenants soon.

Click to expand...
I didnt know there WAS such a thing as million $ values in perth :p

sorry - i couldnt resist !

why not just work out your bottom line....rent lost due to reno... o/c of the $$$ you spend, interest costs, etc as the earlier posted said ?

just dont forget opportunity cost  

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Now XBenX, I said million dollar VIEWS not values (I wish)! Take a ride up to Ford Rd, Lesmurdie and have a look - you can see Rottnest on a clear day!

Thanks for the tips and advice all. I thought about dying it but it would have to be black to cover that colour!

Aceyducey, (*giggle*) internet is about the only thing my other half won't skimp on (that and his beloved bad-debt car!). "Keep every dollar a prisoner" is his favourite catchcry :eek:b
I saw your fantastic reno photos and I loved them! Looks fantastic! Would you be able to take a closer photo of the vanity so I could see it a little better? I've been straining my eyes trying to get a closer look. It sounds exactly what I'm looking for to go in the bathroom of my PPOR.

Amanda :D  

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I'm with ACDC on checking with the PM.

Don't just check the rent- also check the costs, and figure out if it is worth it. $15K costs for $20pw rent increase is about 6.5%.

I've just spent $6K on reno work which has increased the rent $30pw- that works out at 25% pa return on investment. When you're borrowing that money at 6.5%, that works well.

If you've got a sitting tenant though you might not be able to increase the rent. You may be better to wait until they leave to do the work.

I'm a fan of wood laminate floors rather than carpet in the living areas- they can look great- http://www.somersoft.com/forums/showthread.php?postid=49174#post49174

Supply only was about $40 psm.  

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yet another example of my crap typing changing the meaning of my post :)

I meant views - was just a j/k re how could perth have million $ views

id love some close ups of higher qual pic of that vanity too if you have then AD :)

Originally posted by aussieamp
Now XBenX, I said million dollar VIEWS not values (I wish)! Take a ride up to Ford Rd, Lesmurdie and have a look - you can see Rottnest on a clear day!

Thanks for the tips and advice all. I thought about dying it but it would have to be black to cover that colour!

Aceyducey, (*giggle*) internet is about the only thing my other half won't skimp on (that and his beloved bad-debt car!). "Keep every dollar a prisoner" is his favourite catchcry :eek:b
I saw your fantastic reno photos and I loved them! Looks fantastic! Would you be able to take a closer photo of the vanity so I could see it a little better? I've been straining my eyes trying to get a closer look. It sounds exactly what I'm looking for to go in the bathroom of my PPOR.

Amanda :D
Click to expand...
 

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Originally posted by aussieamp

I saw your fantastic reno photos and I loved them! Looks fantastic! Would you be able to take a closer photo of the vanity so I could see it a little better? I've been straining my eyes trying to get a closer look. It sounds exactly what I'm looking for to go in the bathroom of my PPOR.

Amanda :D
Click to expand...
Amanda,

Sorry we won't be near the place for awhile to take more snaps.

The rundown on it is that the vanity cabinet is a TV cabinet from a pine place that we slightly modified & painted (well my partner painted we bought it raw). The bowl is from Reece - we did have a previous bowl from Clints - a deep fruit bowl that we cut the waste hole into (looked even better than the current bowl) but was an accidental victim of a dropped drill.

Cheers,

Aceyducey  

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Hey! What's the matter with aqua? Great colour, I think....
Seriously, though, I can't really add anything here except to say that, when renovating to add value (and increase rent) you need to do it for the cheapest amount for the maximum impact. In this case, talking to a local PM is a great start, as they will be on the ball about what tenants prefer.
As for the kitchen, if it's simply unattractive (dark?) why not consider repainting the cupboards with a laminate paint? I just finished doing this last weekend to a regional IP (lovely way to spend Mother's Day!) for a great result. Also changed the doorknobs and window treatment for a fresh look. I will post up the before and after photos when hubby gets home!  

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