Hi all,
I've just purchased my first IP and am at the unconditional stage on a 2 bedroom 1 bathroom 60 year old weather board house and will be receiving it as vacant possession on the final date of settlement.
This has provided me a window of opportunity to take 2 weeks off work to clean up the place and fix the issues that were reported in the building inspection so I can reduce the chance of any future issues occurring and potentially add some value to the place.
My plan is to keep the place for at least 10 years and then maybe demolish and develop 2-3 units on the block down the track.
The house is already very clean, however it looks like its been 10-15 years since it last had a renovation.
What I aim to do in 2 weeks is:
a) Get it re stumped by a professional (stumps are rotting). Most likely timber with ant caps. - rest of the building is structurally sound.
b) Fill cracks and repaint the interior.
c) Lay new carpet.
d) Repaint parts of the exterior.
e) Clean up the garden and throw away some rubbish.
f) Optional: Install an air conditioner.
I haven't done any quotes are research yet, however I estimate that it could cost me anywhere from $10k-$15k to get it up to a nice standard.
However my parents are assisting me get into this first place and they are very much against me spending any money on a light renovation as they feel that adding carpet is overcapitalizing. They would rather I put this money towards the loan straight away to reduce the interest.
There are two choices.
1. Do the cosmetic fixes and then lease.
2. Not do anything and then lease and save the money to reduce the interest.
I would like to know from people who have purchased investment properties if my decision to do a light renovation is a good one or not.
I've just purchased my first IP and am at the unconditional stage on a 2 bedroom 1 bathroom 60 year old weather board house and will be receiving it as vacant possession on the final date of settlement.
This has provided me a window of opportunity to take 2 weeks off work to clean up the place and fix the issues that were reported in the building inspection so I can reduce the chance of any future issues occurring and potentially add some value to the place.
My plan is to keep the place for at least 10 years and then maybe demolish and develop 2-3 units on the block down the track.
The house is already very clean, however it looks like its been 10-15 years since it last had a renovation.
What I aim to do in 2 weeks is:
a) Get it re stumped by a professional (stumps are rotting). Most likely timber with ant caps. - rest of the building is structurally sound.
b) Fill cracks and repaint the interior.
c) Lay new carpet.
d) Repaint parts of the exterior.
e) Clean up the garden and throw away some rubbish.
f) Optional: Install an air conditioner.
I haven't done any quotes are research yet, however I estimate that it could cost me anywhere from $10k-$15k to get it up to a nice standard.
However my parents are assisting me get into this first place and they are very much against me spending any money on a light renovation as they feel that adding carpet is overcapitalizing. They would rather I put this money towards the loan straight away to reduce the interest.
There are two choices.
1. Do the cosmetic fixes and then lease.
2. Not do anything and then lease and save the money to reduce the interest.
I would like to know from people who have purchased investment properties if my decision to do a light renovation is a good one or not.