Search This Blog

Monday, August 18, 2008

Ball Park Cost To Upgrade Your BH !!!

During my last visit to a 4 years old BH I was asked about the budget to upgrade the house.

I entered the house and make a careful inspection on everything that I feel were not right.

"Harry, so what will be the damage? I mean the cost?".

Very interesting question.

Well when your BH is not showing any sign of improvement,I mean increase in nests numbers, it is high time for you to consider the upgrading works.

Before you consider this you need to allocate some kind of budget for the upgrade.

Depending on the things that you wanted to carry out you must have enought for both the things that you wanted to carry out plus additional sum for things that you forgot to include initially.

For an old BH that you just bought you might consider a ball park figure of 5% of the purchase price for minor works. In the event that you wanted to redo the whole house, major renovation, how about 10%.

Use this ball park figure to convince your bankers or your partners before you proceed with the purchase. If you cannot get this amount then it is better to stay out until the amount is made available.

Let assume you buy over a BH for 300,000 with about 50 nests in it. 5% of 300,000 is just 15,000 while 10% is 30,000.

By spending 15,000 on those minor renovations you might be able to double the nests within 6 to 8 months. If you doubled, from say 50 nests to 100 nests, you gained by 50,000 since you BH now is worth 300,000(cost of purchase) + 15,000(minor renovation) + (50X1000)(increase of nest number multiply by 1000 per nest)=365,000.

Not a bad deal but again what happen if the number of nests did not show any movement?

Well if you have make the right move before buying the unit like conducting those birdcall test, close to a successful unit, lots of birds flying on the top of the unit every evening, the house is okay except no proper sound system and so forth, you have a very strong chances to increase the number.

However if you blindly buy the house without making any proper investigations, you might be doom. It is your fault for doing stupid things and refusing to listen to Harry's advise.

So if you wanted to buy a BH and you have very little knowledge on what to look for, just call Harry (017 755 1318).

He might have some ideas on what to look out for and ask him to bring those birdcall gadget.

He is very crazy with swiftlet farming and don't be suprised that he will crawling all over your BH. You will surely shake your head on what report he will eventually come out with.

No comments: