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 YodaTheWrinkledOne

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

 

Special Ticket Offer, Save $8!

The Essential Baby & Toddler Show is back this April! Save $8 off the door price for a limited time only!

Finding baby name inspiration in unusual places

Sometimes the greatest baby name ideas come from the most unexpected places, as these EB members show.

The case for inducing at 37 weeks

While we often think of pregnancy as a 40 week affair, experts agree that 37 weeks is actually “full term". So is there an argument for inducing all births at 37 weeks?

Does controlled crying really work?

Controlled-crying techniques may help some babies sleep through the night, but for many exhausted new parents, it's just a recipe for more tears all round.

How I taught my infant to use a toilet

As people become more aware of these benefits, I hope more parents will practice this method, so we can cut down on nappies and improve baby bonding.

'I thought it was impossible': Emily Symons pregnant at 45

Aussie actress Emily Symons has announced she is pregnant with her first baby.

Shallow water blackout kills fit, healthy dad

A little girl will grow up without her father after the fit and healthy 34-year-old passed away while doing something he had practised his whole life.

Afternoon naps may be bad for toddlers' sleep

You could be doing yourself a disservice by encouraging your toddler to have an afternoon nap, according to new research.

Best gifts for newborns, new mums and christenings

We've compiled a guide to some of the most popular presents for newborns and new mums, and for christenings and naming days.

Jaime King to be a mum again

Actress Jaime King is pregnant with her second child, giving 16-month-old James a sibling.

Nannies should receive government funding

The Abbott government should extend funding to nannies, and direct childcare payments to low and middle income families, a landmark study on childcare has found. 

Common skin irritations in newborns (and how to treat them)

As many as one in two newborn babies suffer from skin irritations in their first few weeks. So what are the most common rashes and irritations to look out for?

10 wall decals for the nursery or playroom

Wall decals are the answer to creating a beautiful nursery or children's space without lifting a paint brush, a spirit level or even a hammer.

Preschooler walks 2.4km home alone

Three-year-old Cain Trainor headed off home after his first day at a new preschool without telling anyone.

Video: Why mums get nothing done

In spite of being in an almost constant state of motion while looking after the kids and trying to keep things together at home, it can seem as though parents have managed to get nothing on the to-do list done by the end of the day.

The middle name game

The middle name is no longer an afterthought, and parents' inspiration comes from many places.

Have a baby or your money back - but there's a catch

A new IVF scheme offers couples the chance to fall pregnant and give birth - or get their money back. But there's more to it than you might think.

A rare glimpse inside the womb

A baby born still inside the amniotic sac gave US doctors a rare glimpse at life inside the womb.

Battered mum forced to write to her attacker ex in jail

Three years ago Jason Hughes viciously attacked his ex-partner. Now she has to write to him three times a year.

Woman pleads not guilty to ultrasound scam

A West Australian woman will fight allegations that she scammed expectant mums by selling them fake ultrasound pictures of babies.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Brain damaged mum receives compensation

A Sydney mother who suffered brain damage when she was hit by a car while pushing her newborn baby in a pram has reached a confidential out-of-court settlement with the driver's insurance company.

Indigenous midwives break down the barriers

A culturally sensitive midwifery service has gained the trust and respect of Aboriginal women.

The Katering Show's next big delivery

Most mums-to-be plan to take things easy and perhaps have a little break from work as the birth of their baby draws near. Not Kate McCartney.

53 creative pregnancy announcements

Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.

Why I have mixed feelings about Cindy Crawford's leaked photo

Last week an un-retouched photo of model Cindy Crawford surfaced, showing the 48-year-old mother-of -two posing in underwear.

How to create a Peppa Pig pancake

Thought your toddler could not love pancakes any more than they already do? How about if the breakfast treat came in the shape of every two-year-old's favourite cartoon character?

'It's a little life, not a little loss': pregnancy after miscarriage

I thought I was never going to be able to have a successful pregnancy. I decided that I wasn't going to form an emotional attachment with this baby.

Bonds Baby Search 2015: what you need to know

February 18 marks the start of one of the most prolific annual baby competitions in Australia: the Bonds Baby Search. And this year is going to be more special than ever.

Who will manage your Facebook account when you're gone?

This is not something that people like to talk about, but Facebook has announced that it will grant users more control over what happens to their pages after they die.

Struggling mum of four wins $188 million

Mother of four Marie Holmes was financially struggling after quitting her jobs at Walmart and McDonald's in order to care for her children.

Pregnant obese women a 'relatively new problem', coroner hears

A first-time mother whose daughter died hours after her frightening birth insists she was never told of the risks of being obese and pregnant.

'I'm angry as hell': the story behind mum's passionate vaccination plea

She has labelled parents who do not vaccinate their children "misinformed imbeciles" - and for that, she makes no apologies.

IKEA hacks for the nursery and kids' rooms

Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.

8 different kinds of tantrums

I never thought I’d say this, but for a brief moment last week, Kim Kardashian and I had something in common: both our kids had public tantrums.

Polycystic ovary syndrome: symptoms, treatment and your fertility

Polycystic ovary syndrome (PCOS) is the most common female hormonal condition, affecting roughly one in 12 Australian women.

What's the best position for giving birth?

If doing it on your back is out, what's the best position for labour and birth?

Wife forgives snake catcher husband for car surprise

With Valentine's Day coming up, Nat Gilbert could be forgiven for thinking her husband might be planning a surprise for her.

Kids who meet milestones at their own pace

We usually only hear the success stories: tales of the two-year-old who’s talking, running and completely toilet trained. But other stories need to be told too.

Ruby shines as Bonds Baby

Sarah Kiss has a word of advice for proud mums and dads who are keen to enter their babies in this year's Bonds Baby Search Competition - just have fun.

Why dads should go to sleep school

If your family needs to go to sleep school, go with them. You are part of that family and you are part of the solution.

36 baby names inspired by food and drinks

A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

Win a KitchenAid Mixer

Let's celebrate 300,000 fans on Facebook

To celebrate, and to thank our amazing fans, we?re giving away a KitchenAid Artisan Tilt-Head Stand Mixer.

 
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.