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 mad 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 Ehill

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

 

Life with anxiety

At times, I feel pretty worthless. In those moments, all I want to do is curl up into a ball and hide in the dark. I can try to quiet my mind, but it won?t shut up.

IVF leaves woman pregnant with another couple's twins

An Italian woman has been told the twins she is three months pregnant with are not hers.

'My mother-in-law found out our baby's gender behind our backs'

My husband and I mutually decided that we didn?t want to know our baby's sex before the birth, but his mother couldn't handle that.

What you need for the 'fourth trimester'

In my opinion, the first three months after the birth are the most intense. Here's what got me through that time after welcoming my baby.

Weaning a toddler off a dummy: a 15-day plan

Weaning your child off the dummy can be a traumatic experience for both of you. Here are some tips to help you through.

Choosing to be a solo parent

Two women share their stories of longing for a baby so much that they each decided not to wait for a partner before becoming a mum.

Asphyxia link another piece of the SIDS puzzle

An Australian study has uncovered information which could lead to a better understanding of why babies die from Sudden Infant Death Syndrome.

Rescue dog Zoey and BFF Jasper star in adorable pics

Photographer, self-professed "crazy dog lady" and mum Grace Chon takes photos of rescue dog Zoey and her 10-month-old son Jasper together. The results are just too cute. See more on Instagram @thegracechon.

The ultimate travel stroller: the Mountain Buggy nano

We tried the Mountain Buggy nano and give it an enthusiastic thumbs up. As the ultimate travel stroller, it's practical, has great features, and looks fab, too.

Mum's heartbreak as son dies in road accident

Daly Thomas and her two young sons were walking home from church on Tuesday afternoon. Her youngest son never made it.

New Kate Spade baby bag designs

Don?t adjust your screen: this bright beauty is coming to you in full colour.

Easter gifts for babies, no chocolate in sight!

If this is your little one?s first Easter you might want to mark the occasion with something a little extra special. Here are 10 Easter gift ideas, which won't harm little teeth.

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

Win the brand new phil&teds vibe

Check out the good looking new release of the Vibe 3 and the Verve 4-wheeler inline strollers. To celebrate their release, we have a Vibe with double kit to give away.

Baby sleep

From birth to one year and beyond, read about baby sleep, soothing techniques, routines, and sleep school experiences.

Easter gifts for babies, no chocolate in sight!

If this is your little one?s first Easter you might want to mark the occasion with something a little extra special. Here are 10 Easter gift ideas, which won't harm little teeth.

7 tips for a kid-free trip, not a guilt trip

Although I?m jumping out of my skin to take my child-free holiday, I?m dreading the goodbye. But I?m determined to make the most of it without tarnishing it with guilt or sadness about leaving the kids.

Itchibubs: clothes for babies and toddlers with eczema

Parents of children who suffer from eczema will know only too well the scratching that occurs around the clock. A new clothing range aims to help make everyone more comfortable.

Ear piercing: what age is best?

What is it that shapes our opinions on what?s an 'appropriate' age for our children to get their ears pierced? Parents share their views on how young is too young when it comes to piercing.

Caring for kids helps grandmothers stay mentally alert

Looking after grandchildren can help grandmothers ward off brain disease - but it's also possible to get too much of a good thing, researchers say.

Why I loved my third home water birth

After two water births at home, I was determined to give birth to my son the same way. I just hoped this birth would be quicker than my last two.

Revealed: 7 ways food marketers try to trick consumers

If you?re confused by food labels, you?re not alone. Next time you?re shopping for food, look out for these seven common labelling tricks.

'My mother-in-law found out our baby's gender behind our backs'

My husband and I mutually decided that we didn?t want to know our baby's sex before the birth, but his mother couldn't handle that.

 

Free Printable Activities

Keeping little hands busy

Free printable acitivity pages like colouring in, cutting, word finders, mazes, maths activities and puzzles.

 
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.