Renovation Advices please!

Hi guys,

I just bought a brick house, haven't settled yet. Before I finally settle it, I'd like to do some renovations with around 5k or 6k to be used. I got two main aims for the renovation: one is to increase the value of valuation; the other one is to significantly increase the rental income.

By far, what ideas I've got are to add one more bedroom(either from the lounge or porch), add one more toilet, and a little painting (for example the two doors of the garage), however, I have no idea about how to add one more bedroom, and where to add the toilet?

If any experienced guys have any ideas, that would be most appreciated, thanks in advance!

Ryan

(BTW: I'll attach some pics below)

I'll be interested to see what kind of replies you get. With a budget of $5K-$6K I cannot imagine that you could add anything in the way of a bath or another room. But if you can, add an en suite to the largest bedroom. Forget about another bedroom, it won't help the rent and will destroy the floorplan unless you plan to expand the footprint, and I assume you do not.

Agree with Bob - 5k won't get you much! You can spend maybe 2k just getting half reasonable bathroom fittings! Try and go with the en suite. Get a quote on doing the ensuite - if it is above your budget, I would reckon using your budget to paint and do cosmetic maintenance - might help with adding a few dollars to the rental income. But my feeling is to use a bit of money doing up the garage doors and hanging on to the rest of your cash.

As an example - it cost us $9000 about 15 years ago to add a 3.5 x 3 metre office to our house. Built onto a slab and only two new walls had to be built. And about 10 years ago it cost 20k to have a 10 metre x 3.5 metre extension added (new slab, very high cathedral ceiling and only two new walls to be built). This was only to lock-up stage and it was another 10k to insulate, line, fit out and put down cork flooring, etc. 5K these days doesn't go too far!

So wait and see what other replies you get, and have a good think about what is really worth doing. Looks like a nice house!

I thought the golden rule for making money in real estate was to not spend any money on it. A coat of paint and fix up anything obvious.

What was that someone said the other day? "You make your money when you buy, not when you sell".

Quote:

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Originally Posted by silentC

What was that someone said the other day? "You make your money when you buy, not when you sell".

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Thank you Silent, that was me. :D :D ;)

you'll be flat out painting the place with that budget, let alone do any building

Maybe spend the money replacing that carpet!! EEEEKKKKKK! ;) :p

As has been said, you wont get any building done for under $5K. You may be able to make some cosmetic differences (painting if you DIY, light fittings, sml amound of carpet etc) but thats about it.

Joel

Thanks so much, everyone!

After your kind suggestions and experiences, I might try to add en suite into the large bedroom, fix the door handles, taps (obvious fittings) and paint the garage . If I still have budget, I'll replace the carpet as well coz I don't like that carpet either!:confused:

Sincere thanks!:p

Ryan

Unless you are going to have trouble getting tenants I wouldn't spend anything on it. I have had two rental properties for a number of years and you have to work on the broad assumption that all renters are pigs or at the very least they are far less fastidious than home owners. In any street the rental properties stick out like the perverbials, just from the condition of the garden.
I would save the money and put it toward your maintenance budget.

Welcome to the forum Ryan,

here is another forum which will help you:

www.somersoft.com.au

It has an Adding Value section which focuses on how to add value in renos cheaply (the task at hand)

A few tips for a cosmetic reno:
1. paint everything - neutral walls, white enamel trim/doors
2. replace the carpets
3. replace powerpoints and light switches
4. replace light fittings
5. paint wall tiles in bathroom with white knight tile paint.
6. change all washers and replace bathroom fittings
7. new curtains and blinds
8. new door handles in kitchen
9. new locks, door handles throughout the house
10. remove the "aloha" sign!!!

Increasing value and rental yield is about making the property tidy and up to date. Adding a toilet will cost heaps and add very little value. The stuff above will cost you at least $5K. If you have some spare then add a split system, a new vanity and new kitchen doors and benchtop.

The place will look "as new" be updated and modern, with broad appeal (unlike the carpet for instance)

Cheers
Pulse

Thanks!!:)

Hi,

I think you need to add another zero to your budget!!:D:D

Cheers.

75% with Adrian and the rest with Pulse

the only place to be after July 1, 2007 is in super. It'll be tax free in your hand at retirement. Capital gains will NOT be tax free when you sell your investment property. :no:

Hi ryan_mel

I do not see any where to put a ensuite.
I do not see any robe in the main bedroom.?
what are the kitchen cupboards like?

I would
1. put a robe in the main bed
2, paint the lot
3. update the bathroom taps etc new vanity/shower screen
4. depending on the state of the toilet - replace it
5. as above for the laundry tub

to start with

interior photos would be good

Celeste

Firstly, looks like a great place youve grabbed there...
Paint and carpet, though depending on what sort of tennants you are looking to put in i might not even worry about that much. I actually rented one very similar with almost identical carpet and from a young renters POV i was much more comfortable on older 'ugly' carpet than i would be on new stuff... and i am a 'good' renter (i mean i looked after the places i took on.)

Not too keen on 'ALOHA'!!!!!!!