Reno virgins...here goes...

[morn.pen]

After many months/years of scanning through the realestate sites for properties we're finaly in our little granny house, which will hopefully lead to bigger and better things.

I'm a 23 y/o carpenter and have been in my trade for nearly 7 years now. Im lucky to have worked under some of the better if not best builders on the Mornington Peninsula. So I see myself as a fairly advanced carpenter for my age. I plan on using my skills and knowledge to form an extensive property portfollio in the future.

I am also lucky to have parents that have the ability to set up my family with a trust. Our goal is to buy/renovate and then sell when the market is right.

So like I said we had been searching for the right property to kick us off for quite some time. We were set on buying in either mornington-beachside, or south frankston with a budget of $400,000. After many inspections my dad was very sceptical about spending so much on our first project...but I insisted to make money you have to part with it! After many arguments and giving up he came through with the goods and we now own a 3bdr 1bath brick veneer house less then 150mtrs to the beach on a 780sq block!...for just under our budget!!(..and the rear faces north!)...6 weeks later the house next door on the same size block with the same setup is under contract for $475,000. Based on this i think the long wait has paid off?

Now the plan is for me and my partner to live in it while we can and renovate, possible extension. All my labour I put in will be my own time, as will my brother inlaws plumbing labour. Also, my father owns a nursery so all landscaping cost will be very minimal.
At this stage we're in the process of deciding whether to extend upwards changing the whole facade of the house, completely transfering the house into a 3brm 2 bath + study and multipal living spaces, with an architectual look....Or do the typical quick render and revamp with a good entertaining area and well landscaped?

The hardest part is working out the estimated costs for both and what return they could possibly bring with the right market. I have just about every trade in the buisness close to home that can't wait to work for us..and knowing they also take pride in there work they are right for the job and a very low cost. This means the majority of cost will come from materials and fixtures. I personally think there is a good market for nice big homes close to the beach in mornington for the growing family and 2nd-3rd home buyers.

Here are some of simillar :

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=74115118&s=vic&tm=1254732097

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=74115118&s=vic&tm=1254732097

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=74115118&s=vic&tm=1254732097

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=74115118&s=vic&tm=1254732097


These are all somewhat in same buyers range/position/and size to the plans i have..the first one being the same street.

I suppose my only question is, is it possible to do quite an elaborate second story extension for 130k, considering there is virtually no labour cost with carpentry and plumbing..no painter..no landscaper..cheap cabinetry and electrical..?? tough question i know!
or do we just do the quick 30-50k reno and sell while the market is hot? considering next door is selling for 475k as is?

thanks for your time haha..ended up as an essay!

 

[Minx]

Great thread.
My other half builds houses for a living and is a chippy.
In terms of carpentry from your end you would the 130k would not include frame, lock up and fix.
I think that it is doable.
However I do think that one way or another you should be paying yourself for the time otherwise it isn't worth your time.
For a project like this, my otherhalf would pay himself at the end with the profits.
If you don't pay yourself imho, I don't see the point. You would be better off building a house and getting paid to do so.

If you are going up, some expenses would go towards steel and scaffolding.
To keep costs down I would be going with blue board for 2nd story.
With contacts it can easily be done for what you want to spend.

Do you have an apprentice? That would be your only carpentry expense for labour that I could see if you did.

 

[morn.pen]

gday minx! yeh i have the option of paying myself but it will all be done over weekends and nights with the odd days off work here and there..by not paying myself as i go..i get a lump sum at the end and i will then use this as a form of saving for the next project..down the track i am planning to do this full time, so then i would be looking at paying myself. Im fairly lucky with the floor plan if i choose to go second story. I have a plan that will hopefully require very little steel. So much of me wants to extend upwards and go the whole way but there will also be a nice little return just keeping it low key??? ahhh what to do, what to do

 

[HomeBuyAU]

Since it's your first reno I think you should go with the easier option and your learn from this experience with less risk. But you know the full details so you have to write down some figures and decide which is going to bring the best profits. I think renovating is like any other business, you have to have a good business plan made up and know exactly where you are going.