The Quick Lick and Flick Reno

The Quick Lick and Flick Reno
Jen Gautier is a passionate property investor who has been building a buy and hold portfolio since 2002. Two years ago she decided to try her hand at trading. “It was scary at first,” she says, “after all those years of ‘don’t sell, never sell’ as my mantra.” It also meant putting herself on a fast learning curve in renovation skills. Gautier set up a separate GST registered company to undertake the trading operations. Over the last two years she has bought, renovated and sold five properties. This house, situated on Blake Road in Mangere, was her most recent project. The house was a three-bedroom, one-bathroom dwelling of 90m2. She was drawn to the house for its great bones – a solid weather-board home in original condition. A lined and carpeted garage was used as an extra bedroom; Gautier saw reconfiguring that as an opportunity to add value. Born and raised in Pukekohe, she is a great fan of the South Auckland suburbs, appreciating the value this part of the city offers and the pool of potential first-home buyers. The house, in the Middlemore area of Mangere, is close to the hospital with great rail transport links to the city and road access to the airport and motorway. Gautier managed her earlier projects, co-ordinating subcontractors and taking a DIY approach when swinging a crowbar was needed. This time she hired a project manager and renovation team, which she thought was her biggest lesson. “It worked really well and, honestly, didn’t cost a great deal more. I still remained involved, but could relax a bit and enjoy the process. I set up good channels...

Renovation How To $30k Budget

Renovation How To $30k Budget
Property Details: Knights Rd Rothesay Bay A 3 bedroom, 1 bathroom brick and tile standalone house, approximately 100 square metres, with a basement garage. The house is in a premium Auckland North Shore location, with stunning views of Rangitoto. Objective: This house has been owned by Larry Robbins for 15 years, and with its popular location, has tended to attract stable long-term tenants, the last ones were in place for 10 years. “We knew it had gotten shabby,” says Larry, “and asked our tenant to let us know when they next planned to go on holiday, so we could make some improvements. As it turned out, that suggestion encouraged her to give notice.” To complicate matters, Larry and his wife were overseas, doing volunteer service on Mercy Ships, the world’s largest charity hospital ship. Clare Seed from Rentex Property Management, has managed the property for as long as the Robbins had owned it, so was charged with the project.  Her goal was to give the house a modern refresh, to bring it up to date with the current rental market expectations, and maximise the rental return. They wanted to ‘do it once, and do it right’, with a job that could be expected to last another 15 years. Planning: In her property management role, Clare had overseen the odd bathroom tidy up or maintenance tasks. She began the planning of this project, with a view to gathering three quotes from each of the required tradespeople. She soon realised the scope of the task. “Honestly,” she admits, “In a very short time, I realised it was going to be just...

Step By Step Guide To Renovations

Step By Step Guide To Renovations
“We have completed over 600 renovations, averaging around 120 jobs per year,” says Mark. “With a small budget, you’ll need to prioritise carefully, expect to do some of the work yourself, or undertake a plan. If you only have $20,000 perhaps it means you do the kitchen this year, but make an agreement with the tenants that if they are still there in 12 months, you’ll tackle the bathroom then.” How to Guide Step 1: Setting Goals – why are we doing this renovation? A renovation for a buy and hold rental will have different goals from a property you intend to renovate and trade, or one day live in yourself. “Tenants can actually be put off by high end fixtures and fittings,” Mark says. “They are concerned that if these things should get damaged they will be expensive to replace. Go for tried and trusted brands on things such as tapware and appliances, so you can easily source replacement parts.” For a buy and hold property, are you trying to increase return, in which case can you add another bedroom by turning a large laundry or sunroom into a bedroom, or can you extend? Is it generally tired, in which case you may be after ‘redecoration’ which is a cosmetic refresh using existing cabinetry, and adding touches such as a new coat of paint, as opposed to ‘renovation’ where you are removing walls and putting in whole new kitchen cabinets or shower units. At the very least, renovations should safeguard you from tenancy vacancies and allow you to keep up your rent at a good market rate. Barry...

Renovation Roadtrip Seminar

Renovation Roadtrip Seminar
20 Budding renovators attended this inaugural Renovation Roadtrip seminar which was jointly hosted by Maintain To Profit – Property Apprentice and Harbour City Plans which was a full day on the real nuts and bolts of renovating residential property. The day concluded with site visits to renovation projects across Auckland in various stages which the attendees commented gave them “real life” experience of whats involved. Here is some feedback form the day Eyes wide open as to what to expect now – thanks guys for an informative event Visiting the sites was a real eye opener for me – more work than I had realised in renovating Full day of great content and knowledgable speakers – well done – wll recomend to my friends More value than it cost ten fold thanks team...

Redecoration or Renovation?

Redecoration or Renovation?
“Are the types of renovations you do for investors simply redecoration or are they renovation.?” That’s a question I recently received via email, and it raised a very valid point.  What do these terms mean with regard to your investment property?  What are the outcomes and cost that come with each? There are only two reasons to renovate in investment property: • To increase your equity • To increase your rent and rentability (reducing your vacancy factor) To achieve these goals, you may only need to redecorate without doing a major renovation.  This could save you time and money, but it’s important to get it right. Firstly, and most importantly, work out what your budget will be and then set about planning your project.  Once you have established your list of works it should become clear if your project is redecoration or a renovation. Your project is redecoration if: • The work is just superficial • It’s easy to remove or replace the items that are being changed. • The work doesn’t require any structural or integral changes to the building footprint. Usually, this kind of work can be done in a few weeks. For the typical redecoration you simply require new paint, new carpet and vinyl and small items such as new handles on your kitchen cupboards and possibly a new mirror and tapware in your bathroom. Often even novice landlords can manage these types of projects; provided you understand the workflow of each trade and the consequences of getting it wrong.  For example you always lay the carpet after painting to ensure it never gets paint damaged.  This...

Renovate NOW

Renovate NOW
Many building suppliers are increasing costs due to the rise in GST, which came into effect at the beginning of this month.   But with a subdued building market seeing the availability of builders and other contractors, the time is still good to be renovating. We have been quoted increases by suppliers from 2.50% to as much as 12% in some instances and that will certainly add cost to any size renovation project.  There is a firm belief this is their only opportunity to apply a price increase in this economy. Our company has seen a real surge in investor’s enquiries, in particular since the Budget was announced and tax implications made clear.  Seasoned investors want to ensure they maximise rents with well-presented properties that stand out from the crowd and that attract good quality tenants, especially if a tenant should move on, so there is little to no downtime. They also understand very clearly that the property market may take many years before it rebounds to the lofty heights of 2007.  Homeowners who can’t or won’t sell in this market have bunkered down and are borrowing an affordable amount to renovate and add that extra room or create that extra space that their lifestyles require. So this month I thought I would talk about three of our recent and very different renovation projects, what the landlords or owners wanted to achieve and how it’s working out for them. Project 1  Renovating to Rent This is a five bedroom large house, on a full site, purchased for $410,000 by a young couple as their second investment property in New Windsor,...