Reply: 2.1.1.1
From: Owen .
This post is copied from an email reply to one of our lurker forumites but asnwers Cathy's post well too. I couldn't find my other post so here's what I did. The property is 2 br/2 bath unit in Alexandria, 4kms from Sydney, next to Sydney Park, 300m from a train station, 15min walk to the King St, Newtown restaurants with City skyline views. Potential plus.
Reno.
Kitchen. Cupboard doors off, handles and hinges off, oven, cooktop, rangehood, dishwasher, sink out. Painted doors and external cupboard surfaces with White Knight Laminate paint system (Hi-Gloss White). Painted tile splash back with White Knight Tile paint system (Semi-Gloss Grey). Got Granite Transformations to cover the laminate bench top with black granite (cool). Installed Stainless Steel oven (flash), Stainless Steel rangehood (flash), electronic dishwasher (flash), Halogen cooktop (real flash). All bottom of the range Westinghouse stuff. Reused sink (new mixer), door handles, hinges. A flash kitchen that looks a million dollars but cost a quarter the price of a new one.
Bathrooms. Removed vanities, taps, rails etc. and replaced vanities with Hi-Gloss White ones on Stainless legs (latest look, local made). All taps and rails with Dorf El Toro chrome stuff. That’s it.
The rest. Painted everything first. Nice sand/wheat type colour on walls (Matt - easy to patch) , cool Eggplant/Purple type colour in kitchen and around the end wall of the lounge/dining room (Matt). Feature walls are very dramatic and very simple. Everyone loves it and it cost $40. Bathrooms (Pale Blue Semi Gloss – clean and sharp), ceilings (Flat White – easy to patch), doors and frames (White Birch Gloss - off white). Removed, cleaned, polished and reused door handles. New deadlock on front door and removed the stupid door closer. It’s a home, not a motel. Replaced every light fitting, fancy Halogens in kitchen and bathrooms and plug and light switch cover (Gloss White). Carpet a nice 50/50 Wool/Synthetic Sisal look one with a good rubber underlay. Real luxury and it will last long after the depreciation. Slimline Venetians on the windows and a nice curtain in the lounge.
Why. The first thing tenants do is switch on a light, use the taps and check the kitchen out. They look at the switches, flick it and then look at the light fitting. They see Dorf on the taps. Halogen cooktops aren’t common so if you don’t have gas, have one of these. Big hit. Don’t scrimp here. Same with the carpet. I made prospective tenants and the valuer take their shoes off and the carpet is nice and soft. It also sets a president for what ever tenants you get. Maybe they will keep doing it. Mine say they will!!! These things, the granite bench top and a $40 feature wall were a big hit.
Result. I then got a whole lot of sale notices from surrounding comparables, ads, Home Price Guide reports and wrote a big ‘History of the Building’ story and spend nearly 2 hours chatting with the valuer and looking at the view in our socks. I asked for a huge increase in value (comparable with other City views) and got nowhere near it. The result was, however, exactly what I expected and needed (I know my market) and was 24.5% above my purchase price and 6 times my renovation outlay …. in 6 weeks. I can’t wait to do it again.
Suggestions. Read everything you can on Geoff Doidge (reno’s Queenslanders – check the forum and API Magazine) and Peter Spann (does the same for apartments). I’ve spreadsheeted everything spent and bought for this reno and I can repeat to the last dollar tomorrow. I will change things but the basics will remain the same. Over time, I will stop doing them myself and hopefully tradesmen I can trust to do it. I can just project manage it then and keep track of the numbers. Easy.
Disclaimer. This is the one and only reno (except for my house which was way different) I have done. This one worked and I am positive many others won’t. Wrong house, wrong market, wrong time etc. But I’m pretty confident this is an easily repeatable process (for apartments at least) and I will be doing it again.
I hope that helped a few people. Micheal Croft's post from a month or so ago about adding rooms and converting garages was a gem too. Find it and read it.
That's all folks.
Owen
"Gambling promises the poor what property performs for the rich – something for nothing"