Restump, renovate or get out?

[light]

Hi everyone

I am new to the forums and am seeking some advice.

Approximately two years ago we purchased a residence for $230 000 that we have been using as our primary home. It was basically the best we could afford at the time. It is a three bedroom home.

Location:

CON:
- Across from seniors housing commission units, they are quiet and don't bother us.
- there are also two high density complexes, one situated on the same side of the street but there is approximately 8 house blocks away from our property. The other complex is on the other side of the road and is four houses and an intersection away. Neither of these complexes pose any noise issues etc, but I do know they are there.
- There are also very close neighbours (approximately 3 metres away each side).
- The two neighbours are also high set properties so there is issues with being able to see into each others houses (blinds and curtains are amazing!) but there can also be noise issues.

PRO:
- It is also one block away from a main highway but as there is a row of houses, a lane way and a row of shops, there isn?t a large amount of noise from the highway itself.
- It is walking distance to local hospital, TAFE, and two private high schools.
- It is a highset so can be built underneath, and has two street access.
- There seems to be a fair bit of development in the area, subdivising blocks and building townhouses etc.

When it was purchased, the idea was that we would use it as a rental but I'm not sure that it was the best purchase we could have made.

It is a high set property and there has been some movement. The gaps in the stumps have been repacked but this is obviously something that will need to be looked at in the future. I have received a ballpark figure that it will cost approximately $60 000 to restump (this includes raising to legal height, new council reg slab, reattaching electrical, plumbing and new stairs).

I have also noticed that the bathroom is leaking so this is an urgent problem which needs to be fixed. I have roughly estimated that a new bathroom (including contingency $$$) could set us back $30 000.

Basically, I am not sure if the money I put in to the property will be returned via the rental market (which is soft where I am at the moment) or if I will make a profit if I sold the property if the modifications go ahead.

Do I just renovate the bathroom and try and rent it and see how I go with the stumps which may be good for another 10 years? The kitchen and everything else is fairly tidy. It is the bathroom and stumps which concern me.

If we did the renovations, the house will have cost us $320 000 and I just don't know if I would get that money back.

The other option is to just sell it as it, and make a better investment next time.

Could you please advise your thoughts?

 

[MRCCON]

Hi everyone

I am new to the forums and am seeking some advice.

Approximately two years ago we purchased a residence for $230 000 that we have been using as our primary home. It was basically the best we could afford at the time. It is a three bedroom home.

Location:

CON:
- Across from seniors housing commission units, they are quiet and don't bother us.
- there are also two high density complexes, one situated on the same side of the street but there is approximately 8 house blocks away from our property. The other complex is on the other side of the road and is four houses and an intersection away. Neither of these complexes pose any noise issues etc, but I do know they are there.
- There are also very close neighbours (approximately 3 metres away each side).
- The two neighbours are also high set properties so there is issues with being able to see into each others houses (blinds and curtains are amazing!) but there can also be noise issues.

PRO:
- It is also one block away from a main highway but as there is a row of houses, a lane way and a row of shops, there isn?t a large amount of noise from the highway itself.
- It is walking distance to local hospital, TAFE, and two private high schools.
- It is a highset so can be built underneath, and has two street access.
- There seems to be a fair bit of development in the area, subdivising blocks and building townhouses etc.

When it was purchased, the idea was that we would use it as a rental but I'm not sure that it was the best purchase we could have made.

It is a high set property and there has been some movement. The gaps in the stumps have been repacked but this is obviously something that will need to be looked at in the future. I have received a ballpark figure that it will cost approximately $60 000 to restump (this includes raising to legal height, new council reg slab, reattaching electrical, plumbing and new stairs).

I have also noticed that the bathroom is leaking so this is an urgent problem which needs to be fixed. I have roughly estimated that a new bathroom (including contingency $$$) could set us back $30 000.

Basically, I am not sure if the money I put in to the property will be returned via the rental market (which is soft where I am at the moment) or if I will make a profit if I sold the property if the modifications go ahead.

Do I just renovate the bathroom and try and rent it and see how I go with the stumps which may be good for another 10 years? The kitchen and everything else is fairly tidy. It is the bathroom and stumps which concern me.

If we did the renovations, the house will have cost us $320 000 and I just don't know if I would get that money back.

The other option is to just sell it as it, and make a better investment next time.

Could you please advise your thoughts?

By highset, do you mean on stilts?

If on stilts...

Have you thought about pouring a slab underneath and putting an extra bathroom bedroom in and sitting the house on a timber frame as apposed to stilts?

Relative cost would be better, it may cost $100k as apposed to $60k, but you would have a significant increase in capital, it's getting cheaper to do as well.

If not, what is wrong with your heights? FFL below ground level or something?

 

[macca446]

Hi,
Well I would just keep an eye on the stumps and repair when needed,bathroom 30k that is a lot what are you doing for this amount,I renovated a 3 bed home including driveway for 18k.
More details thanks,and contingency plan what is that for.
Macca446

 

[marg4000]

$30K for a bathroom reno seems rather high given that the house only cost $230K two years ago. I think you can do it much cheaper and still get a good result.
Marg

 

[light]

The house is on timber posts with concrete around the bottom. The concrete is starting to deteriorate though. My 6ft partner can walk around under the house but needs to duck the supporting beams.

There is a concrete slab under the house but it is lower than the surrounding areas which means the water comes in when it rains.

I have noticed that there is mold on the floorboards directly underneath the bathroom so I thought a generous budget of $30 000 may be required if there is significant damage to the floorboards, behind shower wall etc. I also want to move the vanity from one side of the room to the other so there may be new plumbing required etc.

I have uploaded some pictures to give you a general idea of the house.

If it was restumped, I would like to do something similar to the house with the blinds and install a carport. In saying that, I don't have the money to brick the house in so it would most likely end up being timber battens.

The contingency plan is that we live here for another 5 years and redo the bathroom only. Maybe then reevaluate the property market at that stage and go from there?

 

[macca446]

The house is on timber posts with concrete around the bottom. The concrete is starting to deteriorate though. My 6ft partner can walk around under the house but needs to duck the supporting beams.

There is a concrete slab under the house but it is lower than the surrounding areas which means the water comes in when it rains.

I have noticed that there is mold on the floorboards directly underneath the bathroom so I thought a generous budget of $30 000 may be required if there is significant damage to the floorboards, behind shower wall etc. I also want to move the vanity from one side of the room to the other so there may be new plumbing required etc.

I have uploaded some pictures to give you a general idea of the house.

If it was restumped, I would like to do something similar to the house with the blinds and install a carport. In saying that, I don't have the money to brick the house in so it would most likely end up being timber battens.

The contingency plan is that we live here for another 5 years and redo the bathroom only. Maybe then reevaluate the property market at that stage and go from there?

Hi,
Firstly welcome to the forum,if the bathroom is leaking like you have said this firstly is your main concern as it will only get worse and possibly the cost will escalate,organize a few quotes first and go with only licensed tradies,without spending to much on accessories you should be able to achieve a good bathroom under 10k easily.
Cheers.
Macca446

 

[nww]

Could it be the leaking bathroom be causing your movement issues.

 

[kev888]

personally, i think you're overcapitalising on a house worth that much. If you do have 90k to even look at doing the work, I would think you're better off selling the property in an 'as is' condition and taking a bit of a loss on market value. At the same time take your money and put it into something with less potential issues. With 90k (plus equity gained from your sale), you could get into another PPOR + investment property.

 

[norwoodman]

$30k for a new kitchen alone on a $230k property in Rocky (I don't imagine the price would really have moved since you bought as I also own a property on the north side) alone seems a fair way over the top. You'd want to do a renovation in a number of areas of the house for that sort of budget and price.

$60k to restump sounds steep. How much of that is council costs/approvals for raising the house, etc.?

 

[Anh]

Bathroom costs

Hi, a reasonable bathroom should only cost $7-10k. My friend just did hers for $7k, highest house also.

Ta

Anne

 

[wylie]

I'm unsure if you are wanting to close in the verandah in the first photo to make it look like the last photo.

You would gain a small bedroom but lose the charm and appeal that is already there in the first photo. We have one IP that looks like your last photo and would love to return it to its original state but cannot do it because we go back to two bedrooms and lose money on weekly rent we can charge.

 

[MRCCON]

Forget restumping it.

If that was my house, and you are wanting to spend a decent amount of $$, like I said, I'd be getting the bottom story engineered, raise it to minimum ceiling height (2.4), and add another bedroom bathroom, the whole bottom story can be a timber frame and steel beams. No need for stumps.

Styrofoam it, instead of brick, render it, it's alot cheaper if you are just looking for some capital gain. Paint the top weatherboards, it would look fine.

It's probably achievable for 50k.

 

[Spades]

Forget restumping it.

If that was my house, and you are wanting to spend a decent amount of $$, like I said, I'd be getting the bottom story engineered, raise it to minimum ceiling height (2.4), and add another bedroom bathroom, the whole bottom story can be a timber frame and steel beams. No need for stumps.

Styrofoam it, instead of brick, render it, it's alot cheaper if you are just looking for some capital gain. Paint the top weatherboards, it would look fine.

It's probably achievable for 50k.

Good suggestion here...This will give more bang for your buck.

Cheers Spades.

 

[Tim86]

I replaced everything in a bathroom, put in new floor boards to replace the rotten ones, etc... cost was about $1500 DIY. So $30 000 is crazy talk.

And $60 000 to restump is also crazy.

I'd say you are probably better off selling it, someone who knows how to fix everything for $3000 will buy it. Or speak to people that know what they are doing and aren't there just to rip you off.

 

[light]

Thank you for your honest feedback, it is appreciated.

This is the first time I have ever looked at doing something like this which is why I thought I would come here and seek some advice from people who have done it before

I would never build in the verandah as it is one of the things I love about the house. It is a highly utilised area of the house, we eat tea out there almost every night.

I don't really have anyone 'in the know' to ask about these things as majority of my family members have never renovated in their life or purchased homes off the plan. There aren't any tradies in the family either to draw on their experiences.

At this stage I think I will start getting some quotes to redo the bathroom. Thanks for providing the figures from renos you have completed, these ballpark figures will help me from getting ripped off.

I expect it might have been my own fault that the quote was so high for the restumping, I did tell the person they I wasn't entirely sure what I was doing. Rookie mistake huh?