Exactly how crazy am I?

[WattleIdo]

Now looking at an old house with beautiful features:

• double-brick
• looks like cedar under that mould and peeling paint
• floors are some other hardwood
• fireplace has sandstone rock surround
• high ceilings, metal - lovely old light fittings
• beautiful stained glass windows
• has a bath!
• no rising damp
• flat
• rear lane access
• quiet street

But:

• foundations need work
• floor boards probably need replacing in at least one room
• cracks/gaps need builder at very least - maybe structural engineer
• sleepout had termites and floor is r-s - would like to make it a verandah anyway
• kitchen is pre-historic
• one of the wrong sides of town - not very far from housos and ex-housos.

Am I an idiot to keep looking at houses which need some structural work done? Thing is, they're cheap. I could probably afford to get them fixed up with the left-over money and then do all the normal stuff myself - sand, paint, strip, save up for kitchen, resurface bath, new vanity, etc.

Or should I go for something twice the price and a tenth of the work?

 

[Kinnon Bell]

Tula?

.....

 

[WattleIdo]

guess I'm not part of that in-joke Kesse. All I know is that I haven't seen her post for quite a while.

Do you have a response for me?

 

[westminster]

Does it fit your strategy and do you have the skills to fix it or know who can?

Plenty of people buy such places, not all of them make money on it. It is not without risk but then most things with risk carry more reward.

 

[WattleIdo]

Good questions, Westminster.
I could see myself doing it up and living in it while I work in this town - then renting it out for cashflow when I move on.
When I stop working, I might wind up back here, some of the time anyway.
As for knowing someone to do the hard work - no. But have started asking around.

 

[westminster]

Good questions, Westminster.
I could see myself doing it up and living in it while I work in this town - then renting it out for cashflow when I move on.
When I stop working, I might wind up back here, some of the time anyway.
As for knowing someone to do the hard work - no. But have started asking around.

Find some of TMNTs threads. He's done a lot of work on these types of places and you can see a lot of what takes place in a good basic reno.

 

[Kinnon Bell]

guess I'm not part of that in-joke Kesse. All I know is that I haven't seen her post for quite a while.

Do you have a response for me?

No in joke. You post in a similar style to her and often people sign up under a new username, I was just wondering.

I don't think you've provided enough information for me to make a comprehensive response as there's a lot to be considered. For starters, PPOR or IP?

 

[DaveM]

For an ip unless there are huge margins post reno, sinking cash into foundations and termite repairs is a bit of a waste. I would find something without issues and use the reno money to buy another place

As its a ppor to become future ip, the risk is in overcapitalising

 

[Tonibell]

You need to be prepared to pay for a building and pest inspection before you purchase that sort of property - unless the price is based on an a worse case for repair costs.

Some things that look like a major issue can be quite cheap to fix.

When you know the cost of the repairs you have to do then it is an easier decision.

If you don't think the likelihood of proceeding to purchase is worth paying for a B&P - then you have an answer anyway.

 

[WattleIdo]

Good suggestions from two different perspectives.
I would like to get a building and pest inpection so may just go ahead with it.