On renovation

Discussion in 'Landlord & Rental Property Questions' started by dianethare, Jun 4, 2014.

  1. dianethare

    dianethare Senior Investor

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    I have a two bedroomed bungalow that i inherited on from my late mom that needs a full make-over, currently unemployed but doing odd jobs as i try to set up a small business on the side, had gone to the bank to request for a loan and use the house documents as collateral but my offer got turned down, so am in a sort of catch 22 here...any advice beyond here will be highly appreciated:)
     
  2. Leeroy_MY

    Leeroy_MY Well-Known Member

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    What are you planning to use the bungalow for? Are you planning to rent it, sell it, live in it or ??? Because the advice differs as the intended use changes.

    And the bank is not very enthusiastic giving out loans to people without what they deem as a 'steady employment' right now even if you have property as collateral... it's one of the main problems many new entrepreneurs face when starting out.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Yes what is the purpose of the bungalow in the future? Also, seeing as you don't have a full time job, how do you feel about doing most of the renovations yourself?
     
  4. Rosyrain

    Rosyrain Senior Investor

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    Can you live in the bungalow and renovate it when you have some extra money? You may be able to save some money by living in the place. If you have some friends who are handy, try to get some free materials and have a renovation party.
     
  5. Kate

    Kate Senior Investor

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    I like Rosyrain's idea and it's probably what I'd do, especially if I were renting my current house. I'd live in the bungalow and renovate it little by little (and yes, I'd gather up all the help I could get and have that party, too!) and then decide what to do after it's finished. I may just like it so much that I'd end up staying. :)

    All that said, I have no idea about your situation or whether or not you own your current home, and so on. If you need bedrooms for 3 or 4 children, it obviously wouldn't work. :eek:
     
  6. dianethare

    dianethare Senior Investor

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    After gathering much info, its for renting out {need the passive income} on the friends/family part, don't have any{long story}...so this is a one woman's dilemma and don't want to sell it,...passive income is more to my advantage...on free materials, that would be hard to come by in this day and age and also in terms of location.
     
  7. crimsonghost747

    crimsonghost747 Senior Investor

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    Ok so it's for renting out. In that case it looks like what you need to do is to get it rented ASAP. Now it is just sucking money out of you instead of bringing it to you if it's sitting empty. So either get it fixed right now (probably means paying someone to do it.) or rent it out as it is and see about doing the renovations in 6-12 months when the rent income has given you some capital to work with.
     
  8. dianethare

    dianethare Senior Investor

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    Thank for shedding that insight; i think i'll consider renting it out in that state, give it an amount of time and see how it goes :)
     
  9. Leeroy_MY

    Leeroy_MY Well-Known Member

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    I wouldn't recommend renting it out if it is really in a bad condition as the tenant will know that you are in a bad situation and you will not be able to ask for a better price.

    What I would advise you to do is to find out how much it would cost to fix the basics, (no fancy renovations or makeovers, just make sure that it is decent enough to live in) give it a paint job to make it look presentable and then you would be able to rent it out on good terms and at a good price.

    It'll be more worth it in the long run.

    However, we had one case where a tenant agreed to provide tiled floors for one of our real estate and in exchange, we agreed to give them a longer lease and charge a slightly lower rent because we get to keep the renovation. So you can consider that too if you are really short on funds to fix the property.
     
  10. dianethare

    dianethare Senior Investor

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    Currently funds are abit offside so there is nothing that i can do other than rent it out the way it is, on agreeing with the tenant in regard to fix and rent lower, tried that and the tenant tried to fleece me off, glad he is out, planning on going there this week and check out then i can make a solid decision in that regard :)
     

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