the Reno challenge!

From: Nigel W


First some questions and then the challenge!

For the benefit of those of us with no refurb's under our belts yet, would the experienced players please provide some guidance for good rules of thumb regarding cost estimation for cosmetic things like:

* average bathrooms - what does it typically cost to rejuvenate (whether going the whole hog or just reglazing and a new shower curtain!)

* average kitchens - how do you estimate the cost/metre? In your experience what's the best material/s to use for cupboards/benchtops/sinks/splashbacks? (I know there has been some good & unusual suggestions in the past, like using frosted glass instead of tiles etc). Other issues like good suppliers/installers, traps for young players, would be appreciated.

* floor coverings - is vinyl the go? Or should you tile the wet areas for longer durability but less tax benefit?

And now the challenge...contributors like Geoff Doidge and others have based whole seminars around the substantial profits they have achieved through value adding involving minor building work.

BUT what I'd like to hear from people is how much they gain they were able to achieve from purely superficial work. The winner will be the person who can boast the lowest outlay for the highest capital gain! (Cap gain must be verified through sale, independent valuation or refinance) I'll start the ball rolling...

* 1 can of paint, 2 smoke detectors and 2 hours time. Cost $30 - cap gain $5500.

Let the stories begin...

And of course the prize is that winning is its own reward!
 
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Reply: 1
From: Nigel W


Michael

I knew someone would point that out! I just wanted to eliminate that (arguably) subjective element.

I do value my time VERY highly. After all, that's the whole reason we're in this game...more money gives us back time that we'd otherwise have to be salary slaving!

Your post brings out another important point - unless you're planning to sell the property shortly, the cost of the work has to be recovered in an increased rental, hopefully in the same year!

Maybe a rule of thumb might be that the refurb has to pay for itself by increased rent return within say 1,2,3 years?

What do people think?

Cheers
N.
 
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Reply: 2
From: G G


Have just completed a small bathroom for close to 2K, covering the following:
- new bath, vanity, tapware, shower walls, vinyl floor, wall tiles, fanheater, replaced lower parts of plasterboard wall with water-resistant ones. labour mostly diy
Only a small one but looks fantastic now!
cheers
 
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Reply: 3
From: Scott Elsom


Not really a reno but my best value adding was to rent my lawn mower and whipper snipper to one of my tenants for $10 pw. That more than pays for the mowerman to come and do my lawns every couple of weeks.

Also spent $1100 on secondhand whitegoods for another tenant which is returning $21 pw. That's 100% pa (before depreciation).
 
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Reply: 3.1
From: Miakat .


How about $1500 to furnish a house, I get an additional $80 per week.

Miakat
 
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Reply: 3.1.1
From: Miakat .


Decent stuff bought from 'Don't Wanters' in the paper. I was amazed what you could get decent stuff for. I'm never buying new again.

Miakat
 
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Reply: 3.1.1.1
From: Pierre .


I was trying to furnish a 9BR house at the same time as Mia was furnishing hers. I kept finding myself 1/2 an hour behind her each Saturday and missed a load of great stuff. Cursed woman !!!

Anyway, spent $15,000 on renovations and had the valuation increased from $175000 to $280000 in six weeks (+$105000). Then spent aprox $10000 furnishing and took the rent from ~$250pw to $810pw.


 
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Reply: 3.1.1.1.1
From: Miakat .


He He...

Sorry Pierre. You just needed to get out of bed a little earlier.

Miakat
 
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