before the reno

[andrew30]

Hi everyone,

My partner and I are in the market for our first home.

I'm quite a fan of the idea of buying somthing with potential and doing it up myself where possible as well as with the help of pros where appropriate.

We have found ourselves a place going to auction and are tying to work out the best approach from here. Its a weatherboard 3 bedroom place with a great view and northerly aspect (important in hobart :) ). "offers expected over $240k.

I figure the safest option (I don't trust the whole real estate industry) is:


Get a building inspection
work out roughly what it would cost us to renovate/repair whats needed.
Get a professional valuation (not sure if this is needed)
Work out what we are prepared to pay
Hope to get a bagain at auction.
After 2 inspections I've identified some things that I think would be needed:


pulling up the carpet and polishing the tas oak floors (looks like some particle board has replaced a few boards here and there).
pulling down an internal wall
New kitchen
new bathroom
patching/replacing some internal plaster
painting
Anyway I guess the questions I have are:


Does anyone have any advice on traps and pitfalls to be aware of?
what is the cost of an avrage new bathroom and kitchen (ballpark stuff)?
Do we really need an independant valuation?
Is a 1955 home likely to require rewiring?
Is a 1955 home likely to require a new corrugated iron roof?
Is a 1955 home likely to have asbestos in it?
Does it sound like I'm biting off too much?
I know its a vague post but I'd certainly appreciate any advice. Its all a bit daunting.

Thanks heaps, :)

[rick_rine]

I've always got proffesional valuations here in Burnie they are about $400 .
Thats 0.17% repeat point 17 percent ,of the value of your investment . It will give you peace of mind . It will help you with your home loan . It is not much money in the scheme of things .
Yes it is likely to have asbestos .
Also a valuation is different from a building inspection . Thats another cost . There are two types , verbal ( ablout $200 ) and written ( about $500 ) . Once again if you are serious these prices are not to much to pay for good advice .
Myself , I would never build my own home again as I have here . It just is not worth it and I'm sure its the same with a renovation . Each to their own but I'd borrow more and buy a finished house then spend my weekends in the shed or fishing .
As antinike says " just dont do it " . But thats just me . You will for sure find things are worse than you expected and take more time and money to fix . Dont let me put you off though :)
My 2 cents worth .

[echnidna]

A lot depends on how handy you are with your hands.


some answers
4. probably not but who knows
5. ditto
6. yes , under wall tiles and eaves linings etc. but not really a problem in normal circumstances
7. Do you enjoy challenges in life? if not leave well alone.

[andrew30]

excellent, thanks rick!

How much is a comprehensive building inspection (roughly?)

Does a building inspection include stuff like wiring and plumbing?

What about a pest inspection? We don't have white ants so I spose its less of an issue in tassie?

Thanks again for your help

[Kev Y.]

Does anyone have any advice on traps and pitfalls to be aware of?
what is the cost of an avrage new bathroom and kitchen (ballpark stuff)?
Do we really need an independant valuation?
Is a 1955 home likely to require rewiring?
Is a 1955 home likely to require a new corrugated iron roof?
Is a 1955 home likely to have asbestos in it?
Does it sound like I'm biting off too much?
I know its a vague post but I'd certainly appreciate any advice. Its all a bit daunting.

Thanks heaps, :)

Hi Andrew..

The best advice I can give is.. are you REALLY REALLY REALLY sure you want to pursue this course of action? if so be like Nike (just do it). you are only going to come out of the other end in one of two conditions, 1) totally disillusioned with the whole process and never wishing to do it again or 2) feeling wonderful about what you have achieved and can not wait to start the next project.

Not to attempt to answer you other questions.:

point 1.. check the stumps, and also the local council building regulations.
Point two... how long is a piece of string????
point three.. might assist you in knowing just HOW MUCH you have over bid :o
Point 4.. unless it has already been done "quite likely"
point 5... could do , get up and check for your self, even better get up inot the roof space during the day time and look for "shiney spots" or wet spots on the ceiling
Point 6... is the pope a catholic and a german?
Point 7.. no I just think you need a sanity check :rolleyes:

[rick_rine]

excellent, thanks rick!

How much is a comprehensive building inspection (roughly?)

Does a building inspection include stuff like wiring and plumbing?

What about a pest inspection? We don't have white ants so I spose its less of an issue in tassie?

Thanks again for your help

Yes it includes wiring and plumbing but in my experience it is only a VISUAL inspection . Yeah we are lucky not to have termites .

[journeyman Mick]

Q's 4,5 + 6 = yes, most likely. :( The older wiring was rubber insulated, up here at any rate it all broke down over time and most of it was probably replaced in the 70s and 80s. A building inspection should pick this up. Beware about removing any internal walls as a house of this vintage woukd most probably have a pitched roof rather than trusses so internal walls are very likely load bearing.

Q2 how long is a piece of string? depends on how large, what materials, any repairs, cost of fittings chosen (ie: tap handles anywhere from $5 ea to $100 ea)

Q7 keep researching, asking questions and no, it won't be too much. However, contrary to what the home improvement shows would have you believe, renovating is never simple or straight forward. Even though most of the actual steps are simple and straight forward, knowing which steps to take and when to take them can be difficult.

Mick

[attie]

If you allowed say $50k to cover the work required do you think you would get a return on you investment. Perhaps there might be a home nearby that looks like what you have in mind and you could get a value on that from the realestate agent. Homes are starting to peak here in Queensland with some actually droping a bit in price so be aware that large capital gains could be coming to an end in some places.
Wayne

[andrew30]

HI Guys,

Thanks for all you feedback, its great!!

I've always figured that t'd cost twice as mch as I'd think and probably take 5 times as long.

Thinking about the list I can't really think of a room or area that isn't subject to major renos which is a bit sobering...

It'd have to be a bargain to make the effort (and expense) worthwhile. Although its a home for the foreseeble future rather than an investment to offload so the effort wouldn't be an issue.

We'll keep thinking about it for a while.

Thanks again for your help. If we do buy it you'll probably hear lots from me on here. :D

[echnidna]

BTW, why not make an offer now, well before the auction.
Good tactic that works in many instances.

[Auspiciousdna]

I believe you left out question 8, should I wait to see the economic effect if the price of gas stays high for an extended period of time?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>

[maglite]

I believe you left out question 8, should I wait to see the economic effect if the price of gas stays high for an extended period of time?ffice:office" /><O:p></O:p>

IMHO that is a rediculous statement.
Irregardless of the price of fuel people have to live somewhere, if you have to travel to work, thats what you do.
It may mean that spending in other areas suffer but these are generally lifestyle based.
Im sure that a lot of people on this forum remember when interest rates were 17%, did life stop? Instead of interest rates in 2005 it is fuel prices, amazing that propert continues to grow in value. It may be adjusted but it rarely drops for long.

Steve

[attie]

"BTW, why not make an offer now, well before the auction.
Good tactic that works in many instances."

Good idea, certainly won't hurt to try them out.

[Auspiciousdna]

IMHO that is a rediculous statement.
Irregardless of the price of fuel people have to live somewhere, if you have to travel to work, thats what you do.
It may mean that spending in other areas suffer but these are generally lifestyle based.
Im sure that a lot of people on this forum remember when interest rates were 17%, did life stop? Instead of interest rates in 2005 it is fuel prices, amazing that propert continues to grow in value. It may be adjusted but it rarely drops for long.

Steve

I remember talking with the owner of a block of land that was auctioned in the late 80”s, I was working on site next door to that property. The next week interest rates went to 18%, if he would of brought that same property after the rates when up, he would have saved around 15% on the sale! <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>

<o:p> </o:p>

And if we would be able to ask that person if my statement is ridiculous, what do you think he’d say?<o:p></o:p>

<o:p> </o:p>

You’re allowed yours opinion and I’m allowed mine, be it a ridiculous statement or not!!!!! <o:p></o:p>

[Auspiciousdna]

What I meant was if the price of gas stays high for a long period of time, it could slow the economy down which will bring the price of houses down.I don't know what industry you work in, but things were already a bit slow this can't help any over a long period.

[Geno]

Gas? To me gas is the natural gas we use for heating. Car runs on petrol.

Deckboards reeded side up? I can never figure out why anyone would do this..........

[Auspiciousdna]

Gas could also mean the stuff some of us are full of !!!!!!! You can read anything into a sentance if you want to, I just did.

No body is infallible my friend.

[maglite]

DNA,

My statement wasnt meant to offend.
I was merely trying to make the point that high fuel prices are here to stay and it would be best if we get used to paying 1.20+ a litre.
I filled my ute on Friday and paid 1.38l but even with out the raise in prices it is very rare that i have paid less than 1.13l.
whilst this may have an inflationary impact on the economy, my point was that property often gets adjusted but very rarely comes down considerably in price, irregardless of extraneous factors.

Steve

[helga]

Hi andrew30,

Q1 traps and pittfalls
Did you know that a building inspector is not allowed to move, lift, adjust any of the existing owners property when inspecting, like a sideboard or a carpet? It's in the fine print of the inspection report! Still, they are very good for telling you what you are in for. I don't know if you will need mortgage insurance or not (borrowing more than 80% value of home) but I don't think you can get a loan without a valuation. Oh, also, my brother paid $800 for a building inspection in Sydney, but it prevented him from buying an apartment in a block of 4 that was sliding down a hill. All the trees in the yard were on an angle. Worth every dollar he reckons! I could bore you with house hunting details for hours, Oh I check fuse box for circuit breaker or old fuse wire type fuses will tell you if it has been rewired. Good Luck,
Helga

[helga]

Also, I check topo maps for any nearby gasworks, piggeries, abbatoirs, flood issues, or in your case, pulpmills!!

h

[kiwigeo]

What I meant was if the price of gas stays high for a long period of time, it could slow the economy down which will bring the price of houses down.I don't know what industry you work in, but things were already a bit slow this can't help any over a long period.

The current spike in oil prices wont send the world into recession. The world survived the oil shock of the 1970's...and it seems, didnt come out if it having learnt anything.

IMHO Oil and cigarettes have a lot in common.....the world is addicted to both and no matter what you make the price people will still buy the stuff.

[echnidna]

What's the fuel equivalent of chop-chop?

[sol381]

One bit of advise i would give is if this is your first time whatever you think it will cost add at least another 20 %. i do this for a living and still dont get it spot on. Youd be amazed hwo much even the little things can add to the cost and even how much the things youve left out can add to the cost.
Check out tradesmen before hand and get them to roughly quote as well.. Its a bit daunting but you should have fun doing it.
stef

[helga]

fuel equivalent of chop chop is biodeisel.

h

[Auspiciousdna]

DNA,

My statement wasnt meant to offend.
I was merely trying to make the point that high fuel prices are here to stay and it would be best if we get used to paying 1.20+ a litre.
I filled my ute on Friday and paid 1.38l but even with out the raise in prices it is very rare that i have paid less than 1.13l.
whilst this may have an inflationary impact on the economy, my point was that property often gets adjusted but very rarely comes down considerably in price, irregardless of extraneous factors.

Steve

No offence taken, just try to get my point across. Which is, thing in NSW after the Vendor tax slowed down and they still haven't come back after it's abolition. Sorry for being a bit cautious, but I still think waiting is the go right now! Let me put it this way, do you think prices will rise soon, if not why not wait.
On the news last night they were saying that the fuel price is having the same effect as if interest rates would of gone up. And if I remember right they were talking up a fair bit.

[Marc]

Andrew, I don't know how much time you have to find out what you need, but with all due respect to all people here, if you want to know how to renovate, ask in this forum, if you want to know about real estate purchases and what is the difference between making money and losing it with properties, try a forum that deals with professional real estate investors and renovators.
Here are two good and friendly ones.
http://www.somersoft.com/forums/index.php?
http://www.propertyinvesting.com/forum