Adding too much value / my renos

[skater]

$10 a week more rent isn't a great deal. I'm assuming you've gained more than the $9K you've spent, in equity?

Tez will have gained quite a bit more in equity. Just quietly using my own PPOR in the area, if I was trying to max my redraw, I would have asked for over $400k when I revalued it. While that would have been nice, I didn't want to have a valuer walking through the place, as we are knee deep in reno's and they may not have looked kindly on it.

My own home is not a basic one and does have many features giving it a higher value than Tez's IP, however you will find that there are few 4 bedders in St Clair selling below $360-370k at the moment.

 

[tez]

The laundry idea is great. How do you ventilate it?

Extra bedrooms are great as long as you don't lose too much living space.
I wouldn't want a 4 bedder with no dining room. I'm assuming the lounge or kitchen areas are big enough to hold a dining table.

$10 a week more rent isn't a great deal. I'm assuming you've gained more than the $9K you've spent, in equity?

Theres plenty of living space still which is the reason why I closed off the dining room. There is a fully enclosed sunroom which can be used as a family room.

The lounge as it is now still has a space for aq dining table, although not a massive one. I'll get some photo's of the completed job once I get a lick of paint on it too

My own home is not a basic one and does have many features giving it a higher value than Tez's IP, however you will find that there are few 4 bedders in St Clair selling below $360-370k at the moment.

It will be interesting to see what the house is valued at once the reno's are complete. I'll get my bank to do a valuation in about 6 months time to see what equity has been gained.

Just had a quick look and theres not many 4 bedders at all for sale. Mine would be priced at the low to middle range though due to being of basic nature (ie no garage, rooms smaller etc). How do you find the St Clair area in general? Do you have any rentals in St Clair?

 

[skater]

It will be interesting to see what the house is valued at once the reno's are complete. I'll get my bank to do a valuation in about 6 months time to see what equity has been gained.

Just had a quick look and theres not many 4 bedders at all for sale. Mine would be priced at the low to middle range though due to being of basic nature (ie no garage, rooms smaller etc). How do you find the St Clair area in general? Do you have any rentals in St Clair?

There are not many for sale, nor rental, which is why you will get more for it. Don't worry about the small rooms, as many in St Clair have small rooms. The lack of an ensuite will, however, keep it in the lower price category.

I don't have any rentals in St Clair itself, but I do have several in the Mt Druitt suburbs, and it is the same there. Very much a premium for 4 beds. As I said, my very much older IP in Tregear is a 4 bedder with no car accommodation and little yard area will be renting for $300pw. St Clair is usually priced around $80-100 more than it's neighbouring ex-housing dept cousins.

 

[Bargain Hunter]

We moved from Lethbridge Park to St Clair about a year ago. The area we lived in at Lethbridge Park was quite good, the neighbours generally got along however there was a large number of people with nothing better to do than just hang around.

Where we are now appears to be mainly working class and quite a mix, mainly 40's - 50's kids now young adults or left the nest, some young families and retirees. All the properties are kept reasonably tidy, there is no obvious difference between owned and rented properties. I know the property across the street is rented only because there was signage at one stage advertising it for lease.

Although I do not have any investments in the area my brother does have an IP here. Steady tenants, no real problems as far as I can tell. Can't say that this how all the tenants are but would assume most would be reasonable as the area does command a more rent in comparison to adjoining areas.

Well done on the reno. Sounds like you have added considerable value for little outlay.

Regards

Andrew

 

[RumpledElf]

Yep the curtains are now my drop sheets although blue carpet is pretty bad.

My in-laws just installed brand new quite high quality blue carpet in their family/dining room. They've been making noises about selling the place for a while now but I think it was worth more with their threadbare old beige carpet ...

Surprises me they even sell blue carpet nowadays. Average carpet store has 500 shades of beige, and then in a dark back corner there's the bright red, axminster, blue ...

 

[ianvestor]

then in a dark back corner there's the bright red, axminster, blue ...

I'd never heard this word, so I had to look it up... but I can see now why it's in a dark back corner...

-Ian

 

[tez]

I don't have any rentals in St Clair itself, but I do have several in the Mt Druitt suburbs, and it is the same there. Very much a premium for 4 beds. As I said, my very much older IP in Tregear is a 4 bedder with no car accommodation and little yard area will be renting for $300pw. St Clair is usually priced around $80-100 more than it's neighbouring ex-housing dept cousins.

Thanks for the valuable information skater, I'll be sure to update you all when I get a tenant in. I would be a very happy vegemite if I got close to the higher end of $300pw. It would mean I can start looking for IP3 sooner .
Also, you, along with other "western sydney advocates" have helped me with your posts, so I'd like to say thanks to all. I dont think I would have even started looking in Western Sydney if it were not for the regulars who post on here and the help I've had in my threads. Also to JamesGG for putting the 4th bedroom idea into my head

We moved from Lethbridge Park to St Clair about a year ago. The area we lived in at Lethbridge Park was quite good, the neighbours generally got along however there was a large number of people with nothing better to do than just hang around.

Having spend some considerable amount of time in St Clair for the past month, Ive noticed that even in the street where I am (cul de sac) kids are always out and about on the road. It is school holidays I guess so thats to be expected. When choosing this IP, I looked at alot of different areas and the reason why I pursued with the St Clair area was that I could see myself living here later on. So while its a IP now, it may turn into my PPOR down the track. Other consderations such as affordability, rental return and local amenities were also considered. This location just seemed to fit the bill to a T.

My next IP will probably follow a different strategy.

Surprises me they even sell blue carpet nowadays. Average carpet store has 500 shades of beige, and then in a dark back corner there's the bright red, axminster, blue ...

Atleast the blue hides stains but it would not be my choice of colour, even for a rental. That axminster must be new old stock atleast it will hide the spew when someone first sees it

 

[wylie]

I am fairly sure Axminster is a "type" of carpet. (Unlike tufted carpet an Axminster carpet is woven.) I had Axminster carpet in my first house with no pattern. It was tough as old boots, and probably 30 years old but looked new.

 

[RumpledElf]

I've always associated it with the pattern, like argyle socks. You see it quite often in houses out this way that are deceased estates.

And you guys right it is probably new 'old' stock, the store I saw it in (which had quite a selection of hideous florals) was in a declining town at a retailer with a reputation for being so unbelievably slow that the other local carpet retailer got a lot (if not all) of his business just because of poor service times. Those rolls had probably been there since the 50s. He didn't have shag pile carpet for sale though.

 

[handyandy]

I am fairly sure Axminster is a "type" of carpet. (Unlike tufted carpet an Axminster carpet is woven.) I had Axminster carpet in my first house with no pattern. It was tough as old boots, and probably 30 years old but looked new.

Spot on.

It is woven with the colour and pattern visible when you look at the back of the carpet, just like a persian carpet. As a result even when it wares the pattern stays true.

http://www.axminster-carpets.co.uk/howcarpetismade.htm

Cheers

 

[neK]

Tez, for those renovations such as making a laundry and adding a new bedroom did you need council approval?

 

[RightValue]

T

House was $333k and I estimate all up I'd probably $9k or thereabouts. Rental wise, Im hoping an extra $10 at least which is close to 3% increase.

I thought you were asking if your $80k reno was over the top .. till I read this post.

For $9k I think you did really well .. better than $25k I have seen people spend on landscaping in a $35OK house/area.


Your $10pw rent increase is $520pa .. not a great return on $9k ..

sweat the big stuff not the small stuff.

cheers

RightValue

 

[tez]

House is finally ready to rent out. Just got pest control person and carpet cleaners coming tomorrow morning and then I believe the tenants want the keys on Tues. I still have the kitchen verticals on order so I'll have to go back to put them up.

The rent I was able to achieve was around the $400 mark which makes me a happy camper. It's probably priced on the higher end for a 4 bedder, although allowing a dog probably meant I was able to achieve this.

Here are some pictures.

The biggest expense was creating this. Originally, the house had the laundry area behind a kitchen cupboard. I capped off the water pipes, and put some shelving back so it could be used as storage again.

The new laundry area involved putting up the frame and getting a plumber in to plumb the water in (not too hard as this backs onto the shower) and then run the drain behind the wall and outside into the sewer.

Didnt do much in the kitchen area apart from making the old laundry area back into a cupboard and fitting the dishwasher

Bathroom, had to put a new tap in as the old one was leaking. Bit of a weird setup there with the mixer there, although underneath houses the spa bath pump.

 

[tez]

Bedroom pics. New verticals were put in all windows and the whole house was given a repaint in the one same colour

Lounge room photo's. The second picture shows where I blocked it off which used to lead into the dining room to create the 4th bedroom.

Here is the old dining room / new 4th bedroom.

 

[skater]

Nice work. It looks great.

 

[mrsdawnrazor]

You might have a problem with that bath tap. It looks like either a sink or basin mixer which will be flow restricted to 7lpm maximum. That will take 20 minutes to fill a standard bath (1500mm - 140l). You might want to check and if it is , take out the flow restrictor (smll plastic disc). You will not be invalidating any water saving claims as bath tapware does not require a WELS rating or flow restriction.

 

[tez]

You might have a problem with that bath tap. It looks like either a sink or basin mixer which will be flow restricted to 7lpm maximum.

It is a sink mixer and the flow is restricted. I noticed this when I was using it the other day. I'll leave it as is until I get complains. Is the restrictor under the aerator of the mixer tap?

 

[pully]

i think you have done a great job. its always an issue to decide just how much to spend/do, but i think yours is good value.

lucky if you can do things yourself.
regards.

 

[mrsdawnrazor]

yup. You can unscrew the aerator and take it out.

 

[tez]

i think you have done a great job. its always an issue to decide just how much to spend/do, but i think yours is good value.

lucky if you can do things yourself.
regards.

I didnt do the major stuff myself. I got a handyman and other tradies in. If I did the work myself, it would have taken a long time to do, just due to time and work constraints. In the end, I ended up spending a bit more than I wanted to, although its given me a good rental increase and hopefully overall house value

yup. You can unscrew the aerator and take it out.

I'll get the tenants to do this if they complain about the length of time it takes to fill the bath