Landlord

Renovation Rescue – Day 18

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The penultimate day of renovating! Even if I wanted to do more the property is now up on the internet for lease (click here to see the listing) and the clock is loudly ticking.

Today was a mad rush of trying to finish off the many small tasks that remain to be able to say that the property is truly finished. This morning was time to complete the tiles by putting silicone around the edges and where they join the bench tops. If I thought the grout was messy yesterday, the silicone today was even worse. Mainly because the stuff sticks to everything and it’s a real challenge to get a nice clean edge. Several cloths were well and truly ruined in this process and tonight I’m sitting here still finding silicone (of course in the “Havana’ shade) over my arms and hands. It did finish off the tiles nicely though and the kitchen is now largely complete.

Other tasks today included finishing off the front garden, completing the wooden tiling in the veranda which I’m thrilled with, finishing some painting in the bathroom and installing a blind above the toilet. If a tenant was to move in tomorrow I wouldn’t expect any complaints from them but I’m aiming to squeeze in the very final day this coming weekend and then walk out the door and hand over the keys knowing it’s completed to the standard that I’ve been aiming for.

Today I also had a visit from Jamie my property manager to complete the photos for the internet listing which is now up (a whopping 14 views so far) and I’m looking forward to seeing how this goes. I also had a visit from another agent to complete an appraisal on the property and the value today came in at a very different value to that which I got yesterday. This really is highlighting the importance of getting a variety of opinions as just between two appraisals so far there is around a 20% difference. I must say I think I know which one is more realistic. I’ll talk more about values next week when a few more figures are available.

In the meantime check out the listing and keep your fingers crossed that tenants come flocking in!

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Renovation Rescue – Day 17

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Before writing today’s post I’ve been sitting at the desk making a list of all of the things that still need doing and I came up with about 35 things that I still need to do. If this was a week ago a lot of them would be large time consuming tasks but fortunately they are mostly small things that should not take long…I hope. I have one full day left before heading back to work and I’m aiming to get at least 25 of these tasks written off tomorrow. The remaining 10 I will class as ‘like to do’ jobs but not essential, such as pressure cleaning the outside concrete, it’s fun do do but won’t send a tenant running away if I don’t get to it. Enough about what hasn’t happened yet though, let’s talk about today.

After what seemed like a life or death decision of white vs. coloured grout, I picked up my box of ‘Havana’ coloured grout this morning, purchased a new bucket and got to work. Handy hint if you need to mix grout, get a mixing attachment that goes on to the end of your electric drill. I didn’t and it took ages to mix by hand to make sure it was well mixed through. That done though I got on to grouting the tiles. This was hands-down the messiest job I’ve had to do for the entire reno. Working across the back of the kitchen it went on easily and I got around the kitchen, bathroom and laundry tiles in just over a hour. Looking back after it though there was grout absolutely everywhere so it needed a quick clean up in the areas where it wasn’t meant to be. After waiting for it to start to set I then had to go back over it with a sponge to get the bulk of what was over the tiles washed off. In the entire process this took the longest (probably about 2 hours) as it involved constant rinsing of the sponge. Needless to say I’m sick of looking at the colour ‘Havana’ now. I left them until the end of the day to give the tiles a good clean over and they have come up well. I’ll do it again in the morning before using matching sealant in the gaps. So far the tiling project has gone without a hitch. I finished off some more painting after this and now the only painting left is in the smallest room in the house 😉

Today’s interesting event was that I made an early call to a local agent (the one that sold me the property in the first place) to get him to come in and do a valuation. Thinking it would be some time until he could make it I was surprised when he showed up at 4pm. We’d spoken a lot over the phone during the purchase but this was the first face-to-face meeting. He was impressed with the renovation and after giving him the grand tour (all 5 minutes of it) he did a few internal calculations and gave me a number. Whilst I was pleased (and somewhat skeptical) with the number he gave me, I’m keeping it under my hat for now until I get a few additional valuations and I can present my numbers to you all. I have a feeling that there may be a range come through so I’m excited to see what they are.

Now I don’t want to jinx myself but I’m taking a leap and declaring tomorrow to be the penultimate day for renovation rescue 2014.

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Renovation Rescue – Day 16

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So upon my entry back into the property this morning I’ve got to say I was more than delighted to see all of my hard work tiling yesterday was still securely fastened to the wall. The adhesive had set really hard and the tiles felt very stable and solid. Whilst laying in bed last night planning my day ahead I decided that coloured grout will be the way to go. Although I’d love to see what it looks like with a white grout, I’m thinking that tiles with white grout situated behind a stove won’t remain white for that long, particularly if a future tenant decides to get a bit Jamie Oliver in the kitchen. I think a matching grout will hide a few more cooking disasters. The colour I’ve chose will be ‘Havana’ which is supposedly a colour…

Before getting carried away with grouting though I had to finish the remaining tiles which were located behind the bathroom vanity as well as the laundry sink. These took a couple of hours by the time I prepared the surface (the vanity needed new base boards) and got all of the tiles in to place. Once again they came up looking really good so I’ll leave them until tomorrow before grouting the whole lot. I’m excitied to see the finished product.

The remainder of the day was taken up finishing painting the bathroom and laundry as well as installing a new exhaust fan above the shower. A recent Ikea purchase was also unwrapped in the form of the bathroom mirror and shelf. Those ingenious Swedes think of all the clever ways to put things together and fasten them to walls and this mirror and shelf combo was no exception. Some careful measurements, 4 screws in to the wall and it was up and looking great in about 10 minutes. I also managed to get some inexpensive bathroom accessories in the form of towel hooks and a cup holder which add to the space.

Before I wrap up today though I want to highlight the benefits of shopping around for items for renovations. One thing the laundry required were conversion taps for an automatic washing machine. Not the most common plumbing accessories but available at most large hardware stores they were looking at costing $150 when I checked them out online. Having a 10% off voucher I went to Masters and got a set for $135, I was pleased with my savings. Not so pleased the following week when I went to Bunnings and saw them out for $99. I picked up a set there and decided to return the more expensive ones. Then 3 days ago I go into another Bunnings store and what do I see marked down but the same taps for $49! I pick up a set and decide to return the other 2 sets. So although I have now spent $273 on 3 sets of the same taps, with the other 2 sets now returned I ended up with a set which is a third of the price I originally thought I’d have to pay. A pain to have to return the others but a lesson in shopping around!

Tomorrow I’m planning on grouting like there’s no tomorrow…and soon there won’t be a tomorrow (for renovating that is!)

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Renovation rescue – Day 13

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After the painting in the lounge yesterday, today I felt a lot more confident that we could easily get through the kitchen and have it looking good by the end of the day. Once again it was ceilings first and then walls. One thing that I did today after the ceiling had dried was to replace the ceiling fan. Years of cooking grime had accumulated in the old one and it’s an easy update to give a more modern look. For around $20 you can get a new ceiling fan and replace it yourself as there is usually a plug mounted in the ceiling cavity so no electrician is required. 2 minutes…done! Whilst the first coat was drying back on went the over counter cupboard doors which had already had a fresh coat of paint and a set of the new door handles, easy. We also put back on the larger cupboard door in the lounge that had the ‘concealment device’ for the old hot water system as designed by the foreman. It came up really well and you’d never know what it is hiding (see the pictures below).

When the property first settled one of the very first things I did was to get in and measure up the windows for new window furnishings. Ordering blinds can take a long time but fortunately the venetian blind I had ordered arrive early this week (just in time). I ordered through www.blindswholesale.com.au who are based in Sydney and I found their prices to be some of the most reasonable for made to measure. The annoying thing with older places are that many of the windows, door handles etc are in imperial measurements so it’s difficult to get things that fit ‘off the rack’. It’s an expense to be aware of. Once the blind was up though I was really pleased and looking at the before and after pictures below you’ll see what a transformation the kitchen window has had compared to day one.

The afternoon was finished off with the second coats of paint and after that it was finally time to take all of the plastic covers off the kitchen cupboards, lift up the drop sheets and see what the finished product looked like. Unfortunately my current time frame is not going to allow for me to get the final feature of the kitchen finished until next weekend now (work beckons), from the pictures below I’m sure you’ll be able to see what this final feature will be (note the unpainted sections).

Overall the kitchen looks completely refreshed compared to the original and I’m thrilled. I’d even be game enough to cook a meal there now after mum gave the oven a good once over today. It’s amazing what 4 year old oven bake chips look like, think Amazonian shrunken heads but with more potato. There are a few 10 minute things left to complete in the kitchen such as sealant around the sink and some trim around the cupboards but it’s very close now.

Tomorrow I walk back in to the property after 2 flat out weeks and evaluate where we are at and importantly what’s left to do!

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Renovation Rescue – Day 11

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Day 11 of the reno and even though I’m absolutely exhausted at the end of each day, today I couldn’t get back to the property fast enough as I had planned to do what I anticipated to be the most fun activity of the entire project and it certainly didn’t let me down. I actually did the first part of this project yesterday (as it takes 48 hours to complete) but didn’t want to blog about it until I could display the finished product to my trusty followers. It was time to re-surface the benchtops!

Now usually most people probably would not get all that excited about bench re-surfacing but I had discovered this product called Rustoleum Countertop Transformations. It’s so much cheaper than having to get new benchtops and a stack of fun to actually do. The benchtops were a revolting green colour (once again a remnant from the 70’s) and were in fairly ordinary condition. Whilst intact, they were faded and had several nail and screw holes throughout them from various things. There were a number of steps involved including sanding the benchtops, giving them a coat of an adhesive base paint, spraying ‘decorative chips’ over the surface (as well as about half of the kitchen), waiting overnight, scraping and then sanding back, then finally applying a  2-part protective coat over the top. Throw in a visit from my friend Dora as well as a quick lunch with friend and fellow renovator Ryan and it was a hugely successful day. I need to say no more, I’ll let the videos and photos below show you the fun part!

The award winning masterpiece below filmed by the technologically savvy foreman shows the highlight of the process (besides the finished product). The Sir David Attenborough style narration is excellent.

And this is the product instructional video showing some very smiley Americans having a great time with their countertop transformation!

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Renovation Rescue – Day 9

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Today really felt like a major turning point in the renovation. In what is quite a small property it seems that there are hundreds of tiny jobs to do all the time and you get to the end of the day and think what have I achieved? Even though you’ve been flat out since 8am you look back and think, well I spent 3 hours washing down walls or 2 hours digging up old roots out of the front garden…not exactly something to write home about. So after the success of the vinyl installation yesterday I was very excited to be finishing off the floors with the carpet being installed for the lounge and bedroom. I have been looking forward to a big ticket item and this was just the one! Yesterday the vinyl installer arrived right on 8am so I was there ready to go at the same time today. 8am…9am…10am…11am…and then a phone call. Wavering between glass half full and half empty as I sometimes do I was expecting a no-show but fortunately they were just confirming the address and would be there in 5 minutes. As promised they soon arrived and got straight to work.

Having already removed the carpets and underlay was a huge time saver and after a brief inspection (and confirming the carpet was the one I selected) things progressed really quickly. The carpet underlay was amazingly put down in less than 10 minutes. Rolled out, cut to size and stapled down in no time. My glass had suddenly turned to more than half full! The rolls of carpet were soon in and the two guys had it down in just over an hour, they even trimmed up a nice section to finish off the base of the bedroom wardrobe. I couldn’t be happier with the end result and it has made an enormous transformation to the place. I’m really starting to see what the end result is going to look like now.

The other interesting achievement today was something that ‘the foreman’ had been thinking about for a few days. There is a cupboard in the lounge that has 4 shelves in it and on the top shelf gracefully sits the old hot water heater. Now I have no idea how it would have been put in there in the first place but even less of an idea how we could ever get it out (without some sort of helicopter and cable setup) so we needed to cover it whilst still allowing the cupboard door to close. Along comes the foreman with a tailor made piece of plywood with two holes with string through them. Liquid nails goes around the outside and it’s inserted into the cupboard, pulled tight and fastened to a nail either side (see the pictures for this to make sense). Once the liquid nails has dried the string is cut and the holes filled. The end result once painted is a neatly covered up old hot water service that no one will need to ever know about! Very impressed.

Tomorrow I’m going to be in the mood to get plastered!   

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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!

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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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?