Can this work???

[rmjb]

Hi all

We are currently renting and the more I look at our rental the more I see how much potential it has. I would like to approach the owners at some pont to see if we could buy it, depending if my plan can work.

The house is a standard 3 bed on a reasonable sized section, nothing special. However the house is sitting in the middle of the section with grass areas round all 4 walls. Now 3 of the grass areas we never use and im thinking what a waste of space.

I would like to extend the house from all directions and turn it from a 3 bed into a 5 bed with the main bed having an ensuite.

That would mean taking down all 4 walls and extending outwards, and having the garage internal access.

Can this be done?

I could buy the house for about 220k, reno and extension approx 100k(I think not sure??) and could propably have it revalued at 400k+.

Is this something I could think of or am I dreaming the impossible again?

Cheers

Robin

[Volatile]

Hi Robin and Merry Christmas!

I have not seen the house but knocking down four walls and extending is going to be expensive, you would also have to ungrade the rest of the property to suit the
new changes.

Where did you get the figure of $400k+ from? It would have to be a very good street in Wainui. What rental would it achieve?

[rmjb]

Hi James

Merry Christmas to you too!!!

The house is in Karaka street, I think after the extension we would live in it ourselves, with the house in a family trust and then revalue and loan the extra cash to the buy and hold/trading trust.

I reckon 100k for the extension, would it be more than that?

I just see a lot of unused space on the section, surely it can be put to better use?

When you back in Wainui you can have a look.

Cheers, enjoy your day, children are up now so time for opening presents.

Talk later

Robin

[Stevegoodey]

Hi Robin

My latest renovation is totaly cosmetic and I'm not moving any load bearing walls or making the foot print of the house any bigger.

Having said that I'm redoing everyhting, final bill should be round the $250,000 mark.

I would look not only at what you could make out of this deal and what it would cost,but also is it any better or worse investment than anything else you could buy?

If your buying it just becasue you currently live in it thats not a good enough reason.

My sister bought the house next to her as an investment and from what I could see the only thing the house had going for it was that it was next door to her current home.

I'm not saying don't do it, but is it the best place to invest $100+K?

Steve

[xris]

Hello Robin,

Agree with SG.

If your buying it just becasue you currently live in it thats not a good enough reason.

My sister bought the house next to her as an investment and from what I could see the only thing the house had going for it was that it was next door to her current home.

Steve

I can think of only these reasons why buying the house next door to where you live is advantageous...

1/ They are both on valuable land and hence could be sold together to a developer, or used yourself to build.

2/ More direct tenant management.

3/ Its simplicity makes you feel good

On the other hand...

1/ Your neighbour is your tenant and you have to wear two hats. Some can do this easily, others can't.

2/ The house is not the best rental proposition, you bought on naivity and emotion, and all the numerous problems make you feel bad.

Perhaps this is an oversimplification.

xris