Where to start with a kitchen reno?

[Binxi]

Hi all

Our IP (inner melb, 2 bed apartment) is in dire need of a new kitchen! I know this cause we lived there 5 years before moving out, and now we've had tenants in there as well. It's currently an awful navy blue lino uneven floor that needs to come up, plus there is no saving anything really! So new cupboards, bench tops, appliances, cooktops the works.

How on earth do I know where to start or if we are getting ripped off etc!

We don't really have the skills to do a flat pack (but could rip most of it out ourselves except the floor which seems to be glued down) but also don't want to spend a fortune, as it's up 3 flights of stairs on a main road, so the works aren't going to increase the rent that much (but on the other hand, don't want it to look to cheap!). We did contemplate selling but there is a fair whack of equity there so we want to hold on to it. We kind of need to figure it out so we can do it between the next tenants...

Is there a kitchen reno for dummies thread? I did try searching Or what is the average kitchen reno cost?

The bathroom will also need doing eventually but this can wait a few more years..

I'm frazzled just thinking about it!

Thanks heaps as usual!

B

 

[depreciator]

so the works aren't going to increase the rent that much

So why are you doing it? You lived with the kitchen. Tenants have lived with the kitchen. Can the place be rented out again without changing the kitchen?

Let's say you spend $5,000 on the kitchen. How long will it take you to recoup this expense with additional rent? (Don't forget to factor in the time the place will be vacant i.e. losing rent, while you do the reno.)

 

[Binxi]

Thanks for your reply Scott - you actually did our dep sched for our unit in Mornington a few years ago!

The oven is a wall oven from the 60's and we are spending a bit keeping it running, the gas cook top is similar. Also, because the gas cook top is so narrow, we can't find a replacement the same size so are going to have to look at cabinetry work just to put a new one in.

It's looking that run down that I think we will have a hard time keeping tenants (existing tenants have already indicated they won't be renewing) given that there is a lot on the market at the moment.

So if we say $5000 for a new kitchen and floor, it might get us another $10 or so a week in rent. So not a huge amount I agree.

 

[Melbournee]

might be a good idea to rip out the existing kitchen.

You can get some quotes and designs on flatpack kitchens (IKEA, bunnings)

hire a handyman to put the new cupboards on the wall (you can put those together yourselves).

 

[locko24]

$5000 for a $10p/w return?
So ten years to pay back.... hmm

 

[Kristine..]

Yeah, but ....

I am hearing Binxi saying that the current tenants are moving on, and if they want to rent the property 'at all' the place has to be competitive

Given that the property is a 3rd floor walk up on a main road, being competitive with the market includes a number of factors

• Rent
• Amenities
• How dated / tired / unfashionable the interior fitout is

To maintain the rent, it seems that the property needs to improve amenities and update the presentation of the fitout.

$5,000 spent every so often is not much more than maintenance. It makes sense to do the job properly and this will put the apartment back into the main stream to attract fresh blood.

So while the rent dollars may not be increased, the depreciation on the kitchen spend will help offset the expense somewhat

But more importantly, the new kitchen should get the apartment let again without going down the socio economic scale to attract the next tenant.

Even the paint on the walls has a finite life, let along a dark blue kitchen with wonky appliances!

I'm with you, Binxi. Go get it!!

With regards to how to go get it, my Sister just had her whole modest sized kitchen replaced in less than one week for just under $10,000 including floor coverings, all coordinated by the cabinet maker!

Cheers

Kristine

 

[knightm]

i just had a former cabinet maker turned truck driver install a bunnings for me. 5k total kitchen cost including oven cooktop range sink install etc etc. only thing i did myself was tile the splashback and unwrap some of the boxes. if you want to you could outsource that too.