Jump to content

Would you do it?


  • Please log in to reply
21 replies to this topic

#1 jamdonut

Posted 01 February 2013 - 09:09 PM

DH's gran is moving to an aged care facility and wants to sell her house. The house itself is over 60 years old and is in pretty bad shape. There is termite damage to the floorboards, the roof needs replacing, there is water leakage into the downstairs garage and basement, kitchen needs to be totally redone, and the whole thing needs repainting.

The house is situated in a pretty upmarket area and is close to some good schools. The block is quite big and the land alone is worth quite a bit. And despite the state of the house, it has lots of potential - upstairs, there is scope to add in another bedroom and bathroom, as well as a study. Downstairs could be built in to house a self-contained flat (minus the kitchen) of sorts with a bedroom, bathroom and living area.

This would take the home from a three-bedroom, one-bathroom dwelling to a five-bedroom plus study, three bathroom dwelling with two separate living areas.

DH's uncle intends to list the property at $400,000. We would put in a maximum offer of $350,000, given that this is what RPData values the land at. In its current form, the house is essentially worthless.

Nicely renovated, four-bedroom, two-bathroom houses in this area usually go for around $550,000-$650,000. We would live in the house and raise our family in it, so selling it is not a priority, but we would obviously be careful to not over-capitalise.

Would you take on this project? Do the potential pros outweigh the obvious con that is renovating a house in a state of disrepair? Could we basically rebuild the house for $150-$200k? Keep in mind that we have never renovated before and would be relying on trades to do the bulk of the work.

Edited by jamdonut, 01 February 2013 - 09:12 PM.


#2 EsmeLennox

Posted 01 February 2013 - 09:14 PM

I would certainly seriously consider it. I would think about the major jobs that need doing and are some calls to get 'ball park' figures of the cost and go from there.

#3 jenchristo

Posted 01 February 2013 - 09:18 PM

I don't think you could do it for that much. Why don't you get a building inspection &/or some quotes for the renovation/extension.

#4 Feral Madam Mim

Posted 01 February 2013 - 09:20 PM

I guess it depends, where would you all live while these renovations were taking place? Can you realistically afford it?

If you wanted to do it I would get a professional to go through the house, look at everything that needs to be done, get an estimate and see if it lines up with what you are happy to put into the project.

#5 solongsuckers

Posted 01 February 2013 - 09:20 PM

Yes I would consider it but I would do some serious investigation as to how much everything would cost first.

#6 *cough*

Posted 01 February 2013 - 09:21 PM

QUOTE (jenchristo @ 01/02/2013, 07:18 PM) <{POST_SNAPBACK}>
I don't think you could do it for that much. Why don't you get a building inspection &/or some quotes for the renovation/extension.


This.

Also factor in potential family politics.

#7 ekbaby

Posted 01 February 2013 - 09:27 PM

If it wasn't your nana's house would you consider it?

#8 NotBitzerMaloney

Posted 01 February 2013 - 09:28 PM

You might do it and end up with a lovely house for a good price that was worth the risk...
But the potential for family issues would put me off it.
I can imagine hearing about how you underpaid for grandmas house at Christmas in 20 years time. For me personally that would make it a no.

#9 Ice Queen

Posted 01 February 2013 - 09:31 PM

QUOTE (ekbaby @ 01/02/2013, 07:27 PM) <{POST_SNAPBACK}>
If it wasn't your nana's house would you consider it?


Agree.

Get a building inspection and go from there.

#10 jamdonut

Posted 01 February 2013 - 09:33 PM

My parents have a small rental they would be willing to let us rent for cheap for a few months while we carry out the major works.

Yes, we would definitely get a building inspection and obtain quotes but before going to that expense/effort I would like to get some opinions.

Family politics isn't really an issue. DH's mum and uncle just want to sell it quickly. DH's uncle knows we are interested and is fine with us putting in a lower offer if we decide to. DH's nan would be thrilled to bits if she found out we wanted to buy it and keep the home in the family.

Edited by jamdonut, 01 February 2013 - 09:35 PM.


#11 42n8

Posted 01 February 2013 - 09:38 PM

Doesnt stack up as a good investment to me.

350k to buy + stamp duty etc. Plus a multi-storey reno inc adding bathrooms and a kitchen. Termites. Water damage, roof replacement? You're not gonna get that done for <200k (to keep the finished property within market value) by out-sourcing the majority of the work.  And  then there's the hidden problems that always occur on older home reno's.

Even if you do pull all the work you've speculated to be done in under that sort of budget, you're not going to achieve top market value for a budget-priced renovation so you wont gain any equity by doing it.  All you'll get is headaches and stress. I wouldnt do it - especially if I needed to live there whilst it's being done.

Forget the sentimental attachment to the property, it sounds like a money pit.  

However, long term, if you survive all the renovations and end up with your dream family home - then go for it.  Even if you do over capitalise now, what does it matter in 20 years time?

#12 Avogadro

Posted 01 February 2013 - 09:39 PM

I think you're vastly underestimated how much the reno will cost.  My sister did a reno on her house - building in underneath her house (didn't require lifting) - it was a $300k job.  Nothing fancy at all - and no kitchen.

#13 jamdonut

Posted 01 February 2013 - 09:44 PM

QUOTE (Avogadro @ 01/02/2013, 09:39 PM) <{POST_SNAPBACK}>
I think you're vastly underestimated how much the reno will cost.  My sister did a reno on her house - building in underneath her house (didn't require lifting) - it was a $300k job.  Nothing fancy at all - and no kitchen.


blink.gif Yikes.

#14 WaitForIt

Posted 01 February 2013 - 09:51 PM

You couldn't do it for that little.

By the sound of it you'd be better off knocking it down, its considerably cheaper to build from scratch than renovate.

#15 Therese

Posted 02 February 2013 - 08:55 AM

The thought of the family issues that may arise from offering below what they wanted for the house would be enough for me to say I wouldn't do it.

#16 Queen Yoda

Posted 02 February 2013 - 09:50 AM

QUOTE (jenchristo @ 01/02/2013, 09:18 PM) <{POST_SNAPBACK}>
Why don't you get a building inspection &/or some quotes for the renovation/extension.

Start off with this and go from there.  Also get some quotes for knocking it down and building new (may be cheaper)

QUOTE (ekbaby @ 01/02/2013, 09:27 PM) <{POST_SNAPBACK}>
If it wasn't your nana's house would you consider it?

And really think of this.  Is it in the area you had been considering anyway?  Is it the amount you had been planning to spend anyway??

And if it is substantially cheaper to rebuild something new, how will family feel if you knock down Nana's house??

#17 Guest_Sunnycat_*

Posted 02 February 2013 - 09:56 AM

To demolish and rebuild would probably be cheaper than to renovate with the extent of renovations you'd need to do.

#18 little lion

Posted 02 February 2013 - 12:25 PM

QUOTE (Sunnycat @ 02/02/2013, 09:56 AM) <{POST_SNAPBACK}>
To demolish and rebuild would probably be cheaper than to renovate with the extent of renovations you'd need to do.


This could be true. Just check out whether council would allow you to do this. Some old character homes have a lot of requirements surrounding their development.

#19 elizabethany

Posted 02 February 2013 - 12:45 PM

I would run just because of the termites.  They can cause a lot of structual damage that is exxy to fix.  I think it will be a money sink, cause family tensions, and make your lives a whole bunch more stressful.

#20 bluedragon

Posted 02 February 2013 - 12:47 PM

My first thought was it sounds like a money pit and it would be better to demolish and rebuild. Depends if you'd want to do that and if the family would have issues with that as well.

#21 2bundles

Posted 02 February 2013 - 12:51 PM

Rpdata is not a true indication of the land value. It is generally about 20% lower than market.

I agree with others about the $ to do the works. I would have said $300+.

Is there anyone else from the family interested?  If there is, then you would need to talk to them first.



#22 red_squirrel

Posted 02 February 2013 - 01:02 PM

Whilst it is probably an ideal house to knockdown and rebuild. I can't imagine this would go down too well with extended family. All those memories you are destroying yadda yadda.

You would also have to buy at the asking price or noses will be extremely out of joint.

Don't touch it.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Get your FREE Baby & Toddler Show ticket!

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

Win Love Child Season 1 & 2 on DVD

To celebrate the release of Love Child Season 2 on DVD from July 9, Essential Baby and Universal Sony Pictures Home Entertainment are giving away Love Child Season 1 & 2 on DVD to 13 lucky winners.

10 things I wish my pre-baby self knew

I look back at my pre-baby self and laugh at how ridiculously easy I actually had it. I remember complaining about how tired I was and how little time I had.

Creative ways to store your child's art

Ideas for storing your child's artworks have moved on from sticking them to the fridge door before guiltily dumping them in the bin.

Child abuse ignored because 'it's not your children': Waleed Aly

Waleed Aly takes apart the immigration law that's designed to "protect politicians"

How a newborn niece changed star Australian basketballer's life

In August 2013 star basketball Abby Bishop was 24-years-old and in the prime of her sporting career.

Guilt is my new shadow

No one warned me that when I gave birth there would be an additional side order of guilt.

12 brilliant Ikea hacks for kids’ rooms

Check out these creative upcycling ideas that transform regular Ikea items into something special for your little ones.

Child's nightmare about 'man with a light' turned out to be real

For three days, a three-year-old boy had been saying there was "a man with a light" outside his window at night.

Toilet truths after giving birth

The thought of going to the toilet after giving birth is often feared, but there are ways to make it less painful.

Woman asks strangers for $1 million to stop her having an abortion

An anonymous woman is taking an extreme moral and ethical stand by seeking $1 million in donations to prevent her going ahead with a planned abortion.

How a woman's dying wish made another woman a mum

"I kind of think about, 'What did I do beforehand? What kept me so busy back then?' Because now I'm really busy."

The parenting do-over: what six parents did differently second time around

In playgrounds across Australia, you can hear parents lamenting, "When we have our next baby I swear I won't be doing THAT again".

A solo birth, a wasp swarm and a forest fire: mum and baby's amazing story of survival

Desperate, out of petrol and low on food, a new mother lit a fire in the hope of attracting attention.

Boy found on swing died of hypothermia and dehydration, autopsy finds

The story was chilling and heartbreaking: a three-year-old boy was found dead in a Southern Maryland park, his mother pushing him on the swing.

Child's play and laughter help battle fatigue

Feeling fatigued? Uh-huh, thought as much. Join the queue.

Dad shares entertaining 'how to hold a baby' clip

For many new dads, their own child is the first baby they have ever held. So one dad has posted an instructive YouTube video titled "How to Hold a Baby".

The Australian baby with 100,000 Facebook fans

She may be only eight months old, but Egypt has already amassed more than 100,000 fans and received a letter from royalty - Hollywood royalty that is.

Tongue tie: what you need to know

Tongue and lip tie can lead to many problems for babies - and their parents. Here are the signs of tongue tie and how it's treated.

My daughter is small but that doesn't matter

My daughter may be small, but it's my job as her parent to refocus back where it belongs - on who she is as a person

Wet wipes linked to rise in allergic reactions

The government has issued a health warning after a rise in allergic skin reactions has been linked to a preservative found in some wet wipes.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

27 funny ultrasound pictures

Ultrasounds give you a look at your growing baby ... and sometimes what appears to their womb-buddy, or your bub in an amusing position.

What all parents should know about safe babywearing

A picture of Ryan Reynolds always gets the girls talking, and a recently shared photo has done exactly that - but this time, it's for all the wrong reasons.

Baby's head shape reveals potentially fatal condition

Thinking her baby just had an unusually shaped head, a mother was shocked to discover it was instead linked to a dangerous condition.

Why IVF success rates may not be what you think

Transparency, accountability and responsibilityare essential measures to protect IVF vulnerable patients.

Mother-in-law 'from hell' inspires survival guide

The happily ever after Nicola Milan had imagined wasn't to be – and she blames her mother-in-law.

Owning a pair of nail scissors does not make me a hairdresser

It's been a whole year since sleeping in until 10am. A whole year since having a peaceful shower.

The 83 children who were tragically let down in the last decade

Over a 10-year period, 83 children died from domestic violence abuse in NSW, with three quarters of the victims aged five years or under, the NSW Ombudsman has revealed.

Is it reasonable to expect your partner to give up drinking in pregnancy?

From the moment that I fell pregnant with my son, I realised just how much my life had already started to change.

Stroke victim joins class action against makers of popular contraceptive pill

"I was terrified I would always be this way. The pill needs to come with a much higher warning."

Sexy time

Why you should get excited about scheduling sex

Unfortunately, the belief that sex should always be spontaneous is a myth. It just isn't.

When newborn photoshoots get messy

When it comes to newborn photoshoots, it is all about the timing.

Expert Q&A: Gross motor skill development in toddlers and preschoolers

Dr Katie Heathershaw answers questions about jumping, toe walking, riding a bike and being pigeon toed.

'Samuel is our firstborn, and he will never be forgotten'

Having lost their firstborn at one day old, the Carrolls were overjoyed to welcome their daughter Isobel into the world a year later.

Dad takes miraculous catch while feeding baby

One American father has taken multitasking to a new level at a Cubs-Dodgers baseball game at Wrigley Field.

Name your baby Quinoa, win a $10K gift card

Choosing a name for your little bundle of joy is always a major decision. It can be something traditional, trendy, creative … or inspired by the menu of your favourite chain restaurant.

On the 10th anniversary of my son's death

This day marks a significant day. Today marks 10 years since I lost my son Kai.

'Help - my toddler hits me!'

My toddler has started hitting when he gets frustrated, is feeling ignored, or just thinks it might be fun.

The top 6 misleading parenting terms

From 'morning sickness' to 'the terrible twos', there are many parenting terms that are misleading.

When 'good' nannies go bad

While most nannies take pride in their work, there can be some who have a hidden side.

Woman hospitalised for skinny jeans injury

Beware: skinny jeans might be bad for your health.

Gauze seeding: the bacteria-breeding birth trend

A number of women having caesarean deliveries are now taking steps to give their baby a better 'microbiome' start in life.

Jimmy Fallon writes new children's book for dads

Jimmy Fallon, host of NBC's The Tonight Show, recently wrote a children's book about every father's secret wish for their baby's first word to be "dada" - not "mama".

28 names for babies born in winter

Looking for some baby name inspiration for a bub born during the colder months? Here are 28 options from around the world to consider.

 

FREE TICKET

Get your FREE ticket to the Baby & Toddler Show

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.