Buying your PPR with a Reno Eye


So Picking up from last month where we went out  LOOKING as you do ...

Next minute  - Yep lets do this   - We are looking for a new PPR

Reno Eye LOOK  

THE WISH LIST

I always look for something with a point of difference

It had to be walking distance to the beach - no point having a sea change if you still have to drive to the beach  
In the area I was looking at I had options of  waterfront and non waterfront  - the price difference was only about 150 - 200k
Considering that there are only limited waterfront  - I thought that wasn't too bad a premium to pay

The area has quite a cafe society happening and we wanted to make sure we were in walking distance to that and I felt that added value to the property and to my liveability

I wanted Dual Living  - that could make the selection a little harder but gave options for down the track

Did I want a real "Reno Property"  - Moving in with Grandma's into a work zone had its downside - according to the Grandma anyway  - so maybe the answer would be some reno but nothing that would upset the Grandma .

Some items where not negotiable and some were wishes  

Not negotiable

Room for Granny
Walk to the Beach and cafe area
Solid - nothing structural

Negotiable
Reno needed  - Preferable
Waterfront  - Preferable if priced right
Parking ( a premium in this area) min 2 - prefer 4   Garage prefered  room for one or carport ok
Kitchen - priced to allow an upgrade preferred

Building Inspections

I have been doing a lot on houses and can pretty much tell if they are solid or have major issues  - BUT  - I still get a building a pest report  - I have a great guy that does the building report for me and just checks for white ants on his way around  and I'm happy with that

House 1

We found one that could work  - it had a Granny all set up and that looked great  - lots of aging though throught the rest of the property - but I considered that good too  - Price reasonable
On closer inspection I could see lots of "Bad DIY " add ons  - Tiling over old tiles  that were probably drummy (as the ones that hadn't been tiled over were) and no extra waterproofing  - so relying on waterproofing from 30+ years ago - Not ideal
Doors put on with just one screw - obviously not proud of his workmanship
Gaps where tiles finished filled with 3 cm of grout
Shower screens that didn't open properly

So to the Buidling inspection  -  WOW - I hadn't noticed the warping of the cedar boards on the ceiling disguised by paint and caused by paint actually.  There was moisture in the cathedral ceiling  - roof issues

The Granny although only new  had leaking issues  in the shower  ( Couldn't see that either  - glad for that building inspection)  other things in the supposedly council approved addition that I don't think got inspected  and raised suspision  was that new toilets should have lift off hinges ( none found), Steps were of varying sizes (a definate no no )  

Back to the Vendor  - but he wanted to sort the roof himself  and wasn't negiatble on price  - After looking at all the other shoddy workmanship  - I wasnt prepared to proceed  - A roof is an expensive thing to get wrong

House 2

We found another property that was not quite what we had been looking for and had stumbled upon it looking just out of interest for a price guide

We revisited it as the position was ok and fulfulled the walking musts
The Granny - well with some creative moving around - I thought I make this property a dual living home without any structural work   It had been on the market for a while because they came in too high at first.  

Again I got my Building Inspector out  - It looked structrually ok to me but always best to be sure  - You wouldn't read about it  -  there was a leaking shower  - no visable signs again !!  So always get that Inspection done  It ended up being a fitting behind the spout that had worn loose  an easy fix but makes you think about the damage that can go on behind the walls unseen.

We ended up buying this place  - the vedor was negotiable  - the property was sound - plus it has potential to add value  and fulfilled all our criteria

Paperwork
As with selling a property it is nice when buying to have some paperwork handed over to you
These vendors had a file of all receipts from a reno they had done 6 years ago  Council approvals  were available as well - A different category of seller here

Make sure your searches are done early so if anything comes up you can exit within contract terms

The Price

Stick to the Budget  or you will pay the Price  - hahaha

Same as with selling  - the buying process means still  need to look objectively at the market  -

YOU NEED TO LET THE RESEARCH TELL THE STORY  - it is just the same as doing your figures before buying a new property do the same process and that should help you be objective.

Always look for something that you can add equity in
(My last property was a breakup and the outside had not been touched since the build, adding the lifestyle factor improved price and saleability - it will give you a pricing buffer on sale)

The Difference between a buying Reno and your own place??

You might get emotional but tips to avoid that are:

Keep that Wish List and expecially the Not negotiables with you so you don't go tempting to look at something outside your needs or price range

You have your price for the area worked out so you know if what you are looking at is value BEFORE you go to inspect it