[jamdonut]

DH's gran is moving to an aged care facility and wants to sell her house. The house itself is over 60 years old and is in pretty bad shape. There is termite damage to the floorboards, the roof needs replacing, there is water leakage into the downstairs garage and basement, kitchen needs to be totally redone, and the whole thing needs repainting.

The house is situated in a pretty upmarket area and is close to some good schools. The block is quite big and the land alone is worth quite a bit. And despite the state of the house, it has lots of potential - upstairs, there is scope to add in another bedroom and bathroom, as well as a study. Downstairs could be built in to house a self-contained flat (minus the kitchen) of sorts with a bedroom, bathroom and living area.

This would take the home from a three-bedroom, one-bathroom dwelling to a five-bedroom plus study, three bathroom dwelling with two separate living areas.

DH's uncle intends to list the property at $400,000. We would put in a maximum offer of $350,000, given that this is what RPData values the land at. In its current form, the house is essentially worthless.

Nicely renovated, four-bedroom, two-bathroom houses in this area usually go for around $550,000-$650,000. We would live in the house and raise our family in it, so selling it is not a priority, but we would obviously be careful to not over-capitalise.

Would you take on this project? Do the potential pros outweigh the obvious con that is renovating a house in a state of disrepair? Could we basically rebuild the house for $150-$200k? Keep in mind that we have never renovated before and would be relying on trades to do the bulk of the work.

This post has been edited by jamdonut: 01/02/2013, 09:12 PM

[Jemstar]

I would certainly seriously consider it. I would think about the major jobs that need doing and are some calls to get 'ball park' figures of the cost and go from there.

[jenchristo]

I don't think you could do it for that much. Why don't you get a building inspection &/or some quotes for the renovation/extension.

[mad madam mim]

I guess it depends, where would you all live while these renovations were taking place? Can you realistically afford it?

If you wanted to do it I would get a professional to go through the house, look at everything that needs to be done, get an estimate and see if it lines up with what you are happy to put into the project.

[solongsuckers]

Yes I would consider it but I would do some serious investigation as to how much everything would cost first.

[*cough*]

I don't think you could do it for that much. Why don't you get a building inspection &/or some quotes for the renovation/extension.

This.

Also factor in potential family politics.

[ekbaby]

If it wasn't your nana's house would you consider it?

[NotBitzerMaloney]

You might do it and end up with a lovely house for a good price that was worth the risk...
But the potential for family issues would put me off it.
I can imagine hearing about how you underpaid for grandmas house at Christmas in 20 years time. For me personally that would make it a no.

[Ehill]

If it wasn't your nana's house would you consider it?

Agree.

Get a building inspection and go from there.

[jamdonut]

My parents have a small rental they would be willing to let us rent for cheap for a few months while we carry out the major works.

Yes, we would definitely get a building inspection and obtain quotes but before going to that expense/effort I would like to get some opinions.

Family politics isn't really an issue. DH's mum and uncle just want to sell it quickly. DH's uncle knows we are interested and is fine with us putting in a lower offer if we decide to. DH's nan would be thrilled to bits if she found out we wanted to buy it and keep the home in the family.

This post has been edited by jamdonut: 01/02/2013, 09:35 PM