Townhouse in Enmore with reno appeal - how much is it worth?

[ok180]

Thankyou, this is a really interesting post. Did you purchase in the inner west? St Peters and Sydneham tend to have cheaper product that is already renoed, but location is not as nice:
http://www.realestate.com.au/property-house-nsw-sydenham-113006423
http://www.realestate.com.au/property-house-nsw-st+peters-113263851

I purchased in Alexandria.

If your keen to buy a terrace house just put in all the suburbs within 5km's of the city and narrow it down to 1 or 2 bedroom homes. You can still find something good for less than 700k. The competition is going to be fierce but you will score something if your patient. There are really no bad areas left that close to the city these days anywhere you buy should give you roughly the same growth over 5-10 years.

Both those properties look good. You would have no trouble renting those for around $550 a week

 

[Luckyrooster]

I purchased in Alexandria.

If your keen to buy a terrace house just put in all the suburbs within 5km's of the city and narrow it down to 1 or 2 bedroom homes. You can still find something good for less than 700k. The competition is going to be fierce but you will score something if your patient. There are really no bad areas left that close to the city these days anywhere you buy should give you roughly the same growth over 5-10 years.

Both those properties look good. You would have no trouble renting those for around $550 a week

Thanks for the tip. But at 550 a week for a property that costs 630k, you have to admit that's a pretty poor yield, am I right? The 2 bedders in Newtown/enmore tend to rent closer to 650/700 a week.

 

[ok180]

Thanks for the tip. But at 550 a week for a property that costs 630k, you have to admit that's a pretty poor yield, am I right? The 2 bedders in Newtown/enmore tend to rent closer to 650/700 a week.

Yield is probably better in St Peters / Stanmore than Newtown / Enmore.

The yields suck in the inner city regardless, thats not why you buy there in the short to medium term. You buy there to build equity to make further purchases.

 

[Luckyrooster]

Yield is probably better in St Peters / Stanmore than Newtown / Enmore.

The yields suck in the inner city regardless, thats not why you buy there in the short to medium term. You buy there to build equity to make further purchases.

Point taken. I just get nervous when the rent isn't anywhere near the mortgage repayments given if I were to lose my job, I could go under pretty quickly with repayments.

On another note, this property could be a winner with the right reno:

http://www.realestate.com.au/property-terrace-nsw-erskineville-113362871

 

[ok180]

On another note, this property could be a winner with the right reno:

http://www.realestate.com.au/property-terrace-nsw-erskineville-113362871

I think I saw this place on an episode of American Pickers lol

 

[Luckyrooster]

I think I saw this place on an episode of American Pickers lol

It would be quite the move out for these people! Could you imagine how much stuff they have on those walls? Any guesses as to prices? I'm guessing low 700s, but the market is so hot right now, most will overpay.

 

[Luckyrooster]

Marrickville potential?

This Marrickville 2 bedder might go bit a cheaper.

http://www.realestate.com.au/property-house-nsw-marrickville-113450571

I wish I could get into the inner west for under 650k.

 

[ok180]

I wish I could get into the inner west for under 650k.

You can. A property like this would be good for you. This one was basically brand new, would be perfect for an IP if your after CG close to the city:

http://house.ksou.cn/p.php?q=Dulwich+Hill&sta=nsw&id=30105

 

[KangaBanga]

Point taken. I just get nervous when the rent isn't anywhere near the mortgage repayments given if I were to lose my job, I could go under pretty quickly with repayments.

On another note, this property could be a winner with the right reno:

http://www.realestate.com.au/property-terrace-nsw-erskineville-113362871

do you know about income protection insurance? should be a basic if you are afraid of losing your job and have a mortgage on hand.

 

[Luckyrooster]

do you know about income protection insurance? should be a basic if you are afraid of losing your job and have a mortgage on hand.

I do indeed know about income insurance, but I have dealt with a few friends who have told me its like pulling teeth getting them to pay out. They have lots of fine print to make it hard to start paying promptly.

 

[DaveM]

I do indeed know about income insurance, but I have dealt with a few friends who have told me its like pulling teeth getting them to pay out. They have lots of fine print to make it hard to start paying promptly.

Thats why you need to take out a quality policy from a quality insurer, and not one of those $40 a month TV ad ones that exclude everything because you had an ingrown toenail as a child.

 

[Luckyrooster]

Thats why you need to take out a quality policy from a quality insurer, and not one of those $40 a month TV ad ones that exclude everything because you had an ingrown toenail as a child.

Like ANZ or Comm Bank. All insurers are backed by similar re-insurers and are very similar in not wanting to pay. If you buy the stuff from TV commercials, you are asking for trouble.

 

[MIW]

WOW!! Are you serious!? Sometimes I wish I wasn't so young. In 2006, I was quite poor (but happy), backpacking around the world at age 26. The idea of having any kind of money to put into a house back then seemed far fetched. Fast forward 6 years and I have plenty to invest, but the market has moved on so quickly, I feel like I have missed the boat in the inner west as far as houses and terraces are concerned. I guess timing is everything.

Check out this place: http://www.realestate.com.au/property-house-nsw-erskineville-113445419

Price guide says 600k, but I wonder how much it will really go for at auction. I'm guessing low 700s? Worse yet, it needs a heck of a reno job. Maybe 30k worth?

You wouldn't believe it lucky spouse did not attend. I was told by agent prior listing about this property and that it will go to auction as they had no idea what to price it (had rats, tree roots under floor, needed total renovation). Land value probably around $600K yet then we saw it on TV what it went for... well the market is on the move since Annandale and other suburbs had lots of growth. Seems it's vital to look at suburbs with higher income earnings and I can see the trend there that they keep moving up as the income moves too, plus transport, proximity to CBD, cafe lifestyle all these make these suburbs cash cows for long term IMO....

 

[Luckyrooster]

Sold for $770k Wow! Although earlier predictions of mid 800's turned out to be incorrect. Still, that's quite the reno project.

 

[chino]

This has caught my attention in Enmore:

http://www.realestate.com.au/property-house-nsw-enmore-113295247

Booming suburb, looks like a decent reno job. Two storey, quite beautiful. What price is the right price to pay for this kind of townhouse? Mid 700s? High 600s?

Anybody got a crystal ball and guess what it will go for at auction?

Cheers

This property sold for 877k and is now back on the market at $1.15m+

http://www.domain.com.au/Property/For-Sale/House/NSW/Enmore/?adid=2010834484

 

[ok180]

Thanks for the update Chino. Will be interesting to see what it goes for.

 

[Richard Feynman]

^ very interesting.

Any knowledgable reno folks want to take a rough stab at estimating what might have been spent on this (incl labour)?

 

[Television]

^ very interesting.

Any knowledgable reno folks want to take a rough stab at estimating what might have been spent on this (incl labour)?

$200-250k incl. builders margin to be done by a builder. As an owner builder, I reckon you could do it for about the same (because you probably don't know the right tradespeople so that could just about cancel the builders margin).

Not too many major structural changes, mainly seems to be new kitchen/bath, light fittings, flooring, paint & render. If you get a builder who knows some cheap tradespeople, I believe you can do it for about that much.

 

[ok180]

$200-250k incl. builders margin to be done by a builder. As an owner builder, I reckon you could do it for about the same (because you probably don't know the right tradespeople so that could just about cancel the builders margin).

Not too many major structural changes, mainly seems to be new kitchen/bath, light fittings, flooring, paint & render. If you get a builder who knows some cheap tradespeople, I believe you can do it for about that much.

No where near 200-250. More like 100-150k. For 200-250 your talking knock down/rebuild.

Kitchen/Bathroom - $40k
Paint inside/out - $40k
Floors - $10k
Structural modifications - $20k
Landscape front/back - 10k
Other bits - 10k

= 130k

 

[Television]

No where near 200-250. More like 100-150k. For 200-250 your talking knock down/rebuild.

Kitchen/Bathroom - $40k
Paint inside/out - $40k
Floors - $10k
Structural modifications - $20k
Landscape front/back - 10k
Other bits - 10k

= 130k

130k + 8-10% prelims + 8-10% builders margin = 150k - 157k (if you're doing it with a builder and not just organising all trades yourself). Also assuming you didn't get an architect/engineer in for design fees. Also unsure if there'd need to be a DA submitted for this level of works or anything else to go to council.

40k for all new tiling (floor to ceiling wall tiles in both), fixtures and fittings (baths, WC, vanities, frameless shower screen, tap sets, etc. etc.), joinery, plumbing/gas, electricity, appliances (oven, stove, rangehood, new HWU) to two new bathrooms and one new kitchen and relocation of laundry? Keeping in mind that needs to be re-routed through existing stuff so possibly chased in to walls? Also potentially need to put in new sewer lines?
I'd think closer to 60-70k at least once you account for moving of services. Could be wrong though.

I also thought it was rendered on the outside looking on my little screen, if not you can probably knock 15k off down to 185-235.

Floors allow for tearing up of old boards, sub-structure, floorboards & carpet on top of floorboards upstairs (and I presume to stairs)? Again I think you are stretching for $10k

Demo costs of existing items? Bins if you're doing it yourself?
New bifolds including structural changes (knock out bricks, supply/install new steel beam)

250k is a stretch and only if you're going with good trades, good finishes and going to live in it (the kind of work I normally price)

This all depends on who you are and what your skills are. If you flip houses for a living, have a good team of tradespeople and a mate who can do some drafting, yeah you're right I think $150k is achievable.

Doing it "hands-off" though? $200k any day of the week.