Hellow,
After 4 years, my tenants at Sunnybank have moved out. I'm thinking to re-model the kitchen and renovate the inside. However, there's a major issue - the stumps.
The house sits on concrete stumps which are in great condition, but have settled and moved. There's over 150mm variance between the highest and lowest ones. A minimum of 14 stumps need to be replaced - will use galvanised steel adjustable posts. The site has a classification of P (worst possible classification according to Australian Standards). I guess one slightly redeeming factor is the re-stump and level would be tax-deductible since it's a repair.
The kichen will be simple white 2-pac cabinets and new appliances plus a dishwasher. Interior will be repainted and curtains replaced, hardwood floors are in pretty good shape. The most expensive component will be re-stump and level and it doesn't really add rental income.
It's a 3-bed house, 2 toilets, 1 shower, separate laundry, and was rented for $355 per week. For those playing in Brisbane, the house is on Dixon St, Sunnybank, near the train station.
Current kitchen - bit messy since the tenants were packing and about to move out.
Sooo, how should I move ahead??
1) Spend the cash, maybe $20K? on restump, rebuild kitchen and reno interior. Doesn't seem like very good value, even if the house is rented at $400 per week afterwards, it would take yeeears to get back.
2) Kitchen and reno interior on crooked house, keep renting it out, since it increases rent value. The location is good and easy enough to find tenants.
3) Sell the house - capital gains tax? It's been an IP for nearly 5 years. Maybe make a loss and buy another IP straight away?
I don't think I'm ever going to buy a weatherboard house on stumps again!
After 4 years, my tenants at Sunnybank have moved out. I'm thinking to re-model the kitchen and renovate the inside. However, there's a major issue - the stumps.
The house sits on concrete stumps which are in great condition, but have settled and moved. There's over 150mm variance between the highest and lowest ones. A minimum of 14 stumps need to be replaced - will use galvanised steel adjustable posts. The site has a classification of P (worst possible classification according to Australian Standards). I guess one slightly redeeming factor is the re-stump and level would be tax-deductible since it's a repair.
The kichen will be simple white 2-pac cabinets and new appliances plus a dishwasher. Interior will be repainted and curtains replaced, hardwood floors are in pretty good shape. The most expensive component will be re-stump and level and it doesn't really add rental income.
It's a 3-bed house, 2 toilets, 1 shower, separate laundry, and was rented for $355 per week. For those playing in Brisbane, the house is on Dixon St, Sunnybank, near the train station.
Current kitchen - bit messy since the tenants were packing and about to move out.
Sooo, how should I move ahead??
1) Spend the cash, maybe $20K? on restump, rebuild kitchen and reno interior. Doesn't seem like very good value, even if the house is rented at $400 per week afterwards, it would take yeeears to get back.
2) Kitchen and reno interior on crooked house, keep renting it out, since it increases rent value. The location is good and easy enough to find tenants.
3) Sell the house - capital gains tax? It's been an IP for nearly 5 years. Maybe make a loss and buy another IP straight away?
I don't think I'm ever going to buy a weatherboard house on stumps again!
