Investment

Renovation Rescue – Day 2

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Day one of the project has been and gone with what seems like not a lot to show for it. Most of it was spent getting supplies and once I get in to Bunnings or Masters it’s difficult to get me out the front door so an hour or two quickly disappeared. Returning to the property laden with supplies such as paint, rollers, cleaning products and the “must do’ for every new property purchase (a new toilet seat) it was time to get cracking. The day flew past getting the place in order to make a solid start and the rubbish bin was soon full. For a vacant property it’s amazing the stuff you can get out of it that you don’t want. Down came old window furnishings, 30 year old lamp shades, cupboard linings, the old toilet seat and a surprising amount of wall hooks, nails and other fasteners that does make you wonder how much stuff (and what) people hang on their walls. The final focus was on the bedroom which is going to be the first quick win with a wash down of the ceiling and walls in readiness for painting which brings us to day two, today!

Ceiling white can work absolute miracles…as far as paint can work miracles. Although I’d washed down the ceiling and walls, the first coat of paint on the ceiling made an amazing difference. Even after just painting about a metre of the cornice I had to stand back and admire the difference. it was all the encouragement I needed to get the first coat on and what a difference! The photos below speak for themselves. Two coats were achieved on the ceiling and then an idea struck. The bedroom wardrobes have sure seen better days and have certainly seen numerous people’s clothes in them over the years. A quick coat of ceiling white (one coat did the trick) and you’ve got a fresh and clean spot to store as may Gucci handbags as you like!

The other great improvement for the day ably completed by my hard working foreman on the job (my father) was to start painting out the window frames. Formerly completed in a colour that can only be achieved by eating some 3 day old takeaway curry that you’ve left out in the sun, a fresh coat of gloss paint that matches the lighter wall colour brought it into this century kicking and screaming. Before you knew it the day was done and it was time to wash out the brushes and plan for day 3 which will involve an ebay purchase that I’m very proud of!

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Renovation Rescue – Getting a head-start

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So after settlement of this property I had a few busy weeks prior to being able to take some solid time off to really sink my teeth into this renovation project and I wasn’t going to be able to spend more than a day at the property. I knew that at the most I could allocate two weeks off from work to get this project done so I was eager to still utilise any time that I had in the lead up to the two weeks in order to make things progress along. The first thing I was going to do was spend the one day that I did have at the property to do some fairly dramatic work in the front garden to prepare it for re-planing with some leafy and low maintenance plants. Getting rid of the un-loved plants that were there and revitalising the soil was my goal for the day, unfortunately 30 years worth of plants didn’t all come out as easy as I first thought. The end result after a lot of hard work provides the blank canvas that I was after however. See below.

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The other thing I wanted to do was to renew the kitchen and bedroom cupboards and drawers with a fresh coat of paint and some new hardware. This was a great job to do on the move so I removed all of the doors and drawers and took them home with me. Even though I was not at the property I was still able to renew all of the doors and drawers which has saved a lot of time since being back at the property. A fresh paint, some modern new handles and a trick I learnt from YouTube to remove paint from old hinges and they are ready to go! I’m pretty chuffed with the before and afters!

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Tomorrow out come the paint brushes!

Renovation Rescue Project – Let’s start!

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So after quite an absence from the blog I’m making a return in a big way for the next few weeks. The last month or two has been busy with the purchase of another property which is ripe for a cosmetic renovation. The one bedroom unit is very basic but has not been lived in for a number of years. Financially it was a great buy and ticks all of the boxes as a promising investment with potentially a good return from rental income as well as being able to manufacture some capital growth with a make-over. I’ll leave the numbers until we’ve completed the renovation and hopefully you’ll see that it’s been worth the effort.

The property is situated within walking distance to supermarkets, pharmacies and take-away food shops as well as very good schools and public transport. It’s situated in a small complex with 3 other units which are well maintained and also have long-term tenants in place. With a bit of hard work I’m confident that this property will scrub up well and prove itself to be a great home. Whilst many investors like to be ‘hands off’ and couldn’t think of anything worse than having to get in and do work themselves (and that’s perfectly ok), I’m really excited about this project as I enjoy seeing what can be achieved with not much money but a good amount of effort!

Let’s take a look through the property at settlement.

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Tune in tomorrow to see what happens when my green thumb get’s a bit out of control!

Property investor expo

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So the home buyer and property investor show has been doing the rounds in Australia this year and heads to Melbourne from August 29-31. Whilst it may not be everyone’s idea of an amazing weekend activity, if you’re eager to learn more about property investment and hear from a range of experts it’s a great opportunity. There are a variety of seminars over the three days that cover topics from mortgages and finance through to depreciation and renovations. And at $18 for an online ticket it just might be some of the best money that you can invest!

http://youtu.be/Dr_orLUQKn8

Common financial mistakes that landlords make

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True Property Victoria's avatartruemelbourne.com.au

Common financial mistakes that landlords makeMany landlords fall into the same traps, but if you are not careful these consistent oversights can turn into huge landslides of trouble.

Setting the rent too high or too low

Before purchasing an investment property, extensive research must be carried out to determine an appropriate rental price. If the rent is set too high, the property might not attract enough interest from prospective tenants. It will sit vacant and gathering dust while you achieve no profit return. On the other hand, if the rent is set too low you may experience financial pressure and the property may attract undesirable tenants.

Look at listings similar to yours in both features and locality to gage what the rental price should be.

If a property manager is hired, they should be able to provide you with information on similar listings and advise you on an appropriate rental price.

Failing to keep track…

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What a transformation!

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2So in September of 2013 I published a post talking about the difference between Company Title and Strata Title. The example that I used to illustrate this was a one bedroom apartment located in Potts Point in Sydney. This time capsule of a property had been boarded up for over 20 years and was in largely original condition. Whilst that post was talking about the restrictions that may be in place with Company Title, today’s post is quite different. The apartment itself was snapped up quickly (for a value of around $435,000) and someone’s been pretty busy over the last 8 months!

By the looks of the sales pictures the unit was taken back to its bare bones and given a new lease on life. With only 53 sq m to work with it’s a pretty small canvas but what a result! Who would have thought that in less than a year the same place would be showcased with descriptions such as beautiful polished hardwood floors, a streamlined Caesar Stone kitchen with integrated stainless steel appliances and a stylish designer over-sized bathroom (over-sized for 53 sq m I’m guessing). They even managed to squeeze in a concealed laundry.

As with the first sale it came on to the market and was under offer in no time, this time at $610,000! Click here to see the agent’s listing. Although I’m not a professional renovator I think we can safely guess that the renovation itself would not have cost $175,000 so there is a tidy profit in store for this savvy flipper. The catch with this property though is that it still falls under company title so landlords looking for a good investment would have no luck as leasing is not permitted in the building. I’m guessing that it will make a nice pied-à-terre for an executive on the move! Check out some of the before and after images below.

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The cutthroat world of property management 

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MonicaYou wouldn’t be wrong if you said that property investment and the subsequent property management that goes along with it can be a competitive business. It can take a good amount of research and experience to decide on what your criteria is that makes the ideal property manager for your requirements. Whilst my property manager Jamie and his team always do a great job, it’s also interesting to see some different approaches that property managers may take. Coral Sea Property Management in Townsville, Queensland, have certainly gone down a different path with their recent advertising of properties to rent and it’s caused a bit of a stir in the community. Whilst it’s given me a good laugh I’m not too sure if I’d want Monica out the front of one of my rental properties, what do you think?

Shining

TwerkClick here to view their complete range of rental posters, full marks for creativity!

 

What’s on the horizon for negative gearing?

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symbol-upward-arrow-house_002So it’s federal budget night in Australia and there have been rumblings for some time now that the government might be looking to reform their negative gearing policy for property investors. The most frequent suggestion that I have heard is regarding the possibility of introducing grandfathering arrangements for current property investors whilst restricting any future negative gearing to newly constructed properties. Whilst this has the potential to save the government billions of dollars, there is still plenty of debate as to the flow-on effects that it might have. Whilst on one hand there are those stating that negative gearing has done nothing but escalate property prices for those wanting to purchase their own home (Check out the beer coasters here that encourage abolishing negative gearing), others view it as a key strategy in encouraging investment and maintaining a healthy supply of rental properties on the market. Time will tell after the budget announcement tonight and you can rest assured that whatever happens it won’t please everyone. Check out the links below to read some of the recent commentary on the potential impact on negative gearing in the 2014 budget. Stay tuned!

Negative gearing is on the chopping-block

Budget Night: What’s Going To Happen To Negative Gearing?

12 low-cost security ideas for your investment property

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Queensland luxury for $25,000,000

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It’s been a while since I’ve posted an ‘in your dreams’ property and a lot of those in the past have been from the USA. It’s great to find a good local one and this one hits just the right spot. Located a stone’s throw from the Great Barrier Reef in Airlie Beach you’ll find the amazing Mandalay House and it can be all yours for just $25 million AUD. What do I get for my hard earned millions I hear you say? Well once you fly in to your private heli-pad or sail in to your own personal marina with space for a 24m yacht as well as your 2 jet skis you can casually stroll up you your 2629 sqm (over 28,000 sq feet!) luxury home. Even before you get inside you will have passed your massive pool, huge outdoor entertaining areas, caretakers cottage and personal water desalination plant (some would say the desal plant is excessive but you can’t go washing your diamonds in salt water). Once inside you have the choice of 6 king size bedrooms (the master bedroom covers 144 sqm with lounge room & separate 52 sqm walk in dressing room) , 9 bathrooms, cinema, gymnasium and pool room, a climate controlled cellar with dining space for 12, your own internal elevator and car parking for 6 or your luxury cars if you didn’t get the helicopter here. Top all of this off with breathtaking views out over the Whitsundays and you’ll be rushing off to get your checkbook from the glove box of the Aston Martin. Still not convinced? Just check out the marketing video below…butterflies appear to be included with the price.