So the situation:
Own 50% of a property with my sister.
Sister wants to sell...it cost us $320 000 total including reno and stamp duty a couple of years ago. It gets us $600 to $750 gross rent per week depending on whether or not all the rooms are rented out (rented by the room). We pay power and electric. So it's positively geared with only 4 rooms rented and very positively geared with 5 rooms rented. ..... so I'm not that keen to sell... but what can you do.
We did a quick reno when we first purchased the property, but there are many things left to do.
I'm wondering if you were going to sell a house like this, what would you do? Remember I only share in 50% of the profit so I wonder how much I should bother with?
Currently I would say the property would get $420 000.
It's a flood free, nice sized block 610m2. 10ks south of brisbane city in salisbury. It's a nice position.
Some comparable properties that are a bit better for around $450 000:
http://www.realestate.com.au/property-house-qld-salisbury-117947799
http://www.realestate.com.au/property-house-qld-salisbury-117753991
And a property that is way better for around $530 000:
http://www.realestate.com.au/property-house-qld-salisbury-117745415
What sort of price should I realistically be trying to achieve, and how much work and money should I spend on the house to achieve that?
Issues with the house. Bathroom is dated, kitchen is dated, the house needs 12 stumps replacing as the concrete stumps are falling apart. The back steps are falling apart. Back yard needs grass. Downstairs is a bit of a dungeon with the laundry very dated and falling apart. Some eaves need finishing off. House doesn't have gutters.
So what I'm considering doing:
New shower cubicle, new bathtub (already recently replaced vanity). New toilet seat and cistern.
New oven/cook top. Possibly replace kitchen benches as well, kitchen cabinets aren't too bad.
Rip down back steps, put in a back deck instead. Thinking of doing the deck without a roof and maybe just a shade sail or a table in the middle of it with an unbrella. Not really bothered with the whole deck roof thing...
Turf backyard.
Put white palings around under the house to finish it off better.
Re-sheet the laundry so it's not looking like it's falling apart.
Finish off the eaves.
Get someone in to do the gutters as I haven't done them before and don't really want to waste the time doing it.
Possibly replace the 12 stumps that are falling apart. But unsure if it's worth the effort. How much do you think this would effect the sale? Some stumps you can see the rusted rio in them and the concrete is falling off in chunks. Some stumps are worse then others.
What would the rest of you do? There's lots of jobs to do. Even with all of these jobs done I might only achieve a sale of $460 000. So it's a lot of work to see my profits increase a total of $20 000 (50%) gross. Then there is probably $12 000 to get the house to that stage, so the gross profits drop down to $14 000 after all of that work.
Maybe with a deck and everything looking good it might achieve more than $460 000. I'm going to check with a realestate agent tomorrow. But I'd be surprised if it achieved more than $490 000 with all the renos done. Maybe if I put a second bathroom in as well it might get up there.
My brother in law will possibly help out with the jobs too so it won't be all me doing the work. I'm really busy with my ppor building works right now, so timing is crap.
What are your suggestions? What would you do with the property, any ideas would be appreciated. I've included some pics.
Own 50% of a property with my sister.
Sister wants to sell...it cost us $320 000 total including reno and stamp duty a couple of years ago. It gets us $600 to $750 gross rent per week depending on whether or not all the rooms are rented out (rented by the room). We pay power and electric. So it's positively geared with only 4 rooms rented and very positively geared with 5 rooms rented. ..... so I'm not that keen to sell... but what can you do.
We did a quick reno when we first purchased the property, but there are many things left to do.
I'm wondering if you were going to sell a house like this, what would you do? Remember I only share in 50% of the profit so I wonder how much I should bother with?
Currently I would say the property would get $420 000.
It's a flood free, nice sized block 610m2. 10ks south of brisbane city in salisbury. It's a nice position.
Some comparable properties that are a bit better for around $450 000:
http://www.realestate.com.au/property-house-qld-salisbury-117947799
http://www.realestate.com.au/property-house-qld-salisbury-117753991
And a property that is way better for around $530 000:
http://www.realestate.com.au/property-house-qld-salisbury-117745415
What sort of price should I realistically be trying to achieve, and how much work and money should I spend on the house to achieve that?
Issues with the house. Bathroom is dated, kitchen is dated, the house needs 12 stumps replacing as the concrete stumps are falling apart. The back steps are falling apart. Back yard needs grass. Downstairs is a bit of a dungeon with the laundry very dated and falling apart. Some eaves need finishing off. House doesn't have gutters.
So what I'm considering doing:
New shower cubicle, new bathtub (already recently replaced vanity). New toilet seat and cistern.
New oven/cook top. Possibly replace kitchen benches as well, kitchen cabinets aren't too bad.
Rip down back steps, put in a back deck instead. Thinking of doing the deck without a roof and maybe just a shade sail or a table in the middle of it with an unbrella. Not really bothered with the whole deck roof thing...
Turf backyard.
Put white palings around under the house to finish it off better.
Re-sheet the laundry so it's not looking like it's falling apart.
Finish off the eaves.
Get someone in to do the gutters as I haven't done them before and don't really want to waste the time doing it.
Possibly replace the 12 stumps that are falling apart. But unsure if it's worth the effort. How much do you think this would effect the sale? Some stumps you can see the rusted rio in them and the concrete is falling off in chunks. Some stumps are worse then others.
What would the rest of you do? There's lots of jobs to do. Even with all of these jobs done I might only achieve a sale of $460 000. So it's a lot of work to see my profits increase a total of $20 000 (50%) gross. Then there is probably $12 000 to get the house to that stage, so the gross profits drop down to $14 000 after all of that work.
Maybe with a deck and everything looking good it might achieve more than $460 000. I'm going to check with a realestate agent tomorrow. But I'd be surprised if it achieved more than $490 000 with all the renos done. Maybe if I put a second bathroom in as well it might get up there.
My brother in law will possibly help out with the jobs too so it won't be all me doing the work. I'm really busy with my ppor building works right now, so timing is crap.
What are your suggestions? What would you do with the property, any ideas would be appreciated. I've included some pics.