澳洲Australia property Favorite renos | 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
A bit of an open question to all the renovaters out there - for those who do this on a regular basis...
What is the most cost effective reno you look to do on a property to increase rent by the maximum amount, for the lowest cost?
I know this depends a lot on your location, but I'm sure you look to buy houses that are lacking in a particular feature. Also, any renos that you'd avoid at all costs?
It's been invaluable being a "lurker" here, but it's time to move forward...
Welcome to the forum,
Dolf de Roos recommends in his books to find houses without fences or car accom. Then the idea is to whack up new front fence & a quick carport, get the place revalued & make equity for the next purchase.
Although I sometimes go that way, my favourite territory is overgrown lawns, overgrown gardens, green swimming pools, grubby houses. A bit of elbow grease over a few days, they come up a treat. A couple more days of just basic interior painting here & there & a new cupboard of two then I get the bank to revalue (of course it looks a treat by then) & tuck the equity away for the next purchase.
Bang for buck- according to pros, paint. Inside- and out if necessary.
After that- not from experts, just an opinion- floors, car accommodation, maybe kitchen & bathroom cosmetic stuff.
I personally look reno a bit more closely.
What I mean is while cosmetic changes are OK, but value adding can also have a beneficial effect. For example,
Paint house inside/ outside, mow lawn, fix fence, etc.
It will ensure that the property be rented immediately for a bit (???) more. In my specific case add $10 to $15 per week in the area I am in.
I also like to do a bit more, like replace carpets with tile in living area (I am heavily in 2 level townhouses), replace carpet, new curtains, as well as other minor repairs. This would ensure at least $20, but rather more in 1 hit. Plus depreciation allowance, plus the new 'value' of the property (based on rental yield) wil also increase. I know for each property how much this increase will be for each $5 per week increase.
But its not all. Next step is to move up a bit on the ladder and have a look at other thing like air conditioning (reverse cycle where needed), turn a carport into a garage, replace kitchen (last on my list), build a carport, etc, etc.
It means another $15 to $30 per week increase and value increase and depreciation increase. Now the total rent increase is 50%+. Usually the tenant quality is improves as the property improves. This is the additional bonus. Also maintenance cost in the longer term down, so I feel the pain at the beginning and enjoy th ebenefits in the longer term.
Now to me this is win, win, win situation.
Just me 2c.
I like renos, painting inside & out fencing, gardends/landscape, kitchen , bathrooom etc etc I consider myself pretty handy.
I wont buy if I cant add considerable CG within a short timeframe.
They are out there (houses) esp. if you can do some work yrself Look here, there are lots of successful ppl here who cant pick up a spade.
Thanks all for the replies.
Astro, You mentioned landscaping? To what extent would you go? Putting in a couple of shrubs, a new lawn? Do you think it's cost-effective to add something like a decking to a bare back yard if the property doesn't have an existing outdoor entertaining area?
A trusted source suggested that laundries were also an important consideration to renters in my area. I couldn't see his logic. Would others (with more experience than myself) agree/disagree with him?
speak to PM's in your area
for instance a laundry in a cupboard is the same value as a full size laundry to tenants in one of my IP areas
they'd prefer the space in other areas than the laundry
Hi CAD Guy,
Firstly, welcome to the forum and good on you for beginning to post!
Although doing only twice, I have had great success in buying a skanky old 1 bed flat, tearing the guts out of it and replacing everything....new kitchen, bathroom, floorcoverings and window treatments. Added to this, I have placed a new fridge and micowave in the units.
The changes have resulted in rents going from $90-100 per week to $140-155 per week. I feel that the units have benefitted from having no "weak link".
PS...I would rather be rich AND stupid rather than educated and poor!!
I guess I started the thread because I'm currently looking at our PPOR (soon to be rental) and seeing a lot of things that I'd love to do to it while it's still in our hands and easily accessable. We've done a lot of the "ordinary" stuff - slapped on some paint, pulled out the weeds, fixed what was broken... Now I think I'm looking at the place through owners eyes rather than investors eyes. I'm sure I could easily get carried away and over-captialise. Being new to IP, I was just trying to gauge how to decide if money spent on the house was going to be well spent, or merely thrown away.
What kind of calculations do other people use to gague these things? I'm sure a lot of you more seasoned investors don't think twice about these things now. You just KNOW! But for a newbie like myself, is there any advice you can offer?
I've just bought my second IP and am in the process of painting the interior. It was just very tired looking. Got the tenants from my first property to paint it (that's what they do for a living) for a weeks free rent. Went up there tonight and the transformation is amazing, it looks like a totally different place than it did a few days ago.
I need to put a shower over the bath as well. Actually a friend of mine saved me a bit of money on the reno. Instead of buying that wet wall living stuff and relining the walls around the bath she told me to ring the local shower place and ask for acrylic wall lining. You just measure the width of your bath and how far you want the lining to go length wise then the height and they make up the mould for you, no joins, it bends around the corner. Then you just drill a hole where your shower fittings are going to go and "no more nails" it to the wall and silicone around the edges.
Price at the local building depot for wet wall linings - $120 per sheet. I needed 3 plus probably a builder cos I'm not that handy. Price at shower place for acrylic wall linings - 2 sided = $80.00. And apparently it's pretty straight forward to do yourself.
Anyway back to my question. This house is fully fenced, has a garage and a driveway. After painting and doing the shower, we're taking up the grotty floor coverings and sanding and polying the floors.
The rent will be in the upper range for that area, so I may be able to get another $5.00 to $10.00 pw if I'm lucky. But I need to get as much equity out of this house after I've finished decorating, so that I can buy my third house. Is there one particular thing that could push the value up that I hadn't thought of where I don't have to spend much money.
I bought for $92,500, the rent will be $200pw. Fully fenced, single garage, 3 bedrooms, flat section. Right next to a primary school, secondary school across the road, shops five minutes away. Bus stop outside house. Area is starting to go up quite quickly. Long street, one end not valuing as high as the other end (because houses are kept in better condition?). Mine is at end of bad bit, beginning of good bit.
I know someone that bought house in same street 3 months ago. Good end of street. Bought 2 bedroom house with double garage for $83,000. He spent $10,000 put in new kitset kitchen, shower over bath, complete repaint inside and out and polished all the floors. Revalued at $130,000.
How can I get my value up near his - will I? Can I do anything else to the house to get value up without spending heaps. Well, without spending anything. Well - maybe a little bit.
Also do you think I should use the same Valuer as he did. Any comments would be appreciated.
Hi Queen Bee,
I live in Queanbeyan- does that mean we're related?
Your return is great. You obviously realise it would be difficult to increase that return.
A few ideas.
How is the exterior? How does it present? (Mostly the front).
A picket fence can be good- cheap and effective.
TW ("the wife"- Nivia Pryor, a very successful past contributor) used to recommend a few cosmetics out front (her purpose was to resell quickly at a profit- but same principals may apply). Something like hiring topiary our front when valuer comes. Or just painting the front of your fence. Maybe using pine mulch around all garden areas.
First impressions are important. Make the most of them.
Yes, I think we probably r related! LOL
Around the bottom of the house (I'm sure it's got a proper name but I don't know what it is) the house was painted with that horrible dirty brown fence paint to match the fence.
I painted that bright blue yesterday (the house is yellow) and I'm going to paint the garage door the same colour. It's quite amazing the transformation just in painting around the bottom of the house. I'm going to paint the front fence (the blue's pretty bright - I'm not sure if I should paint the fence the same colour it'll make it reall stand out in the street. What do you think? It would certainly give it "impact". I'm getting a trailer load of bark this week to put over the front garden.
Everyone that's come in the house so far (friends) have said WOW, so that's a good start (but then what do they know).
The painters have done a really good job. On Saturday and Sunday they managed to paint the lounge, dining, hallway and three bedrooms, with two coats. They just got all my different types of cream paint that I picked up at the tip and mixed them together in a bucket. Cost = $Free. Feature walls - mismatched paint from paint shop. Cost = $7.00 per litre. (2 x 4 litre containers). Paint around outside of house. Cost = $Free (I had it in my garage for about a year). Kitchen, undercoat. Cost = $Free (Used oil based ceiling paint from the tip - covers anything, including brown fruit wallpaper in kitchen - also really good for covering ceilings that are brown from smokers, and it doesn't seep through) overcoat with cream. Feature wall in kitchen. Cost = $Free. Leftover from my kitchen last year.