Hello,
We have found a house that we might be interested in. It is 2 bedroom and 1 bathroom and in need of quite a bit of renovations. However, I think the prospect of CG after this is very good. As we don't have a huge amount of spare cash at present, my plan is to get a personal loan of some description and do 1 "stage" of the renovation after which I will get it revalued/refinanced and hopefully extract enough equity to pay off the loan (plus change) and re-use this to do the next "stage".
What the house needs is:
- Extension of 1 bedroom and new bathroom. A builder I called said I should expect to pay ~60k for this all inclusive (inc bathroom fittings etc) however this was sight unseen. Perhaps include WIR if not too much more.
- New kitchen (~10k?)
- Renovate existing bathroom inc tiling (~10k)
- Other bits and pieces such as repainting, new light fittings, blinds/curtains, polish floorboards, minor landscaping and other misc costs/repairs (~20k to be safe as other things could come up that we didn't foresee).
Total is 100k. This is the absolute most I would look at spending and I would obviously try to get it done for less than that. I think the final sales price would be ~650k when complete which would give us a 2-for-1 return on each $ spent.
My schedule would be:
Stage 1 - Renovate kitchen and bathroom
Stage 2 - Extension
Stage 3 - Everything else
Does this seem realistic? Anything else to be aware of?
Am I biting off more than I can chew?
We have found a house that we might be interested in. It is 2 bedroom and 1 bathroom and in need of quite a bit of renovations. However, I think the prospect of CG after this is very good. As we don't have a huge amount of spare cash at present, my plan is to get a personal loan of some description and do 1 "stage" of the renovation after which I will get it revalued/refinanced and hopefully extract enough equity to pay off the loan (plus change) and re-use this to do the next "stage".
What the house needs is:
- Extension of 1 bedroom and new bathroom. A builder I called said I should expect to pay ~60k for this all inclusive (inc bathroom fittings etc) however this was sight unseen. Perhaps include WIR if not too much more.
- New kitchen (~10k?)
- Renovate existing bathroom inc tiling (~10k)
- Other bits and pieces such as repainting, new light fittings, blinds/curtains, polish floorboards, minor landscaping and other misc costs/repairs (~20k to be safe as other things could come up that we didn't foresee).
Total is 100k. This is the absolute most I would look at spending and I would obviously try to get it done for less than that. I think the final sales price would be ~650k when complete which would give us a 2-for-1 return on each $ spent.
My schedule would be:
Stage 1 - Renovate kitchen and bathroom
Stage 2 - Extension
Stage 3 - Everything else
Does this seem realistic? Anything else to be aware of?
Am I biting off more than I can chew?