Hi,
We have recently got ourselves into a big debt as we purchase our family home. As a result i am going to sell off my investment
property i have in Kings Park, VIC. The home is a 3 bedroom brick home, on a small allotment. I am unsure if it worth spending money renovating (kitchen, bathroom-toilet-laundry) and maybe floating floors to increase the sales price or sell the house as is. it hasnt been renovated since it was built and i would suggest it being a 30-35 yr old home. As the avg. sale price in the area is approx $360,000 im not sure if i would be able to get a whole lot more for the house even after renovating. if so, what would approx cost be? for something simple and cheapcheers!
Hi Gurkosh,
One of the age old questions to reno or not to reno. It really comes back to your target market and comparative sales in the area.Personally I think there are two types of renos. Cosmetic and a full. I don’t like it when you see houses with some new elements but not others.
You can often find for semi renovated houses people always have something to pick at especially if they are owner occupiers and on the other hand an investor will see that it has been semi renovated and deem it is not worth the price. He then buys an unrenovated property up the road for a good price and does a cosmetic reno or even a semi reno for minimal cost.
For your situation you might just want to do a paint, floors and light fittings. These alone can be done for cheap and look great for minimal cost and input.
It is not only a dollar figure. There will be time spent either DIY or managing tradies, the normal reno stress etc etc. You would wanting to be making 20% ROI from the reno.
Get on to agents in the area, got to open houses and do your research to see if it can be justified.
Are there any renovated properties of a similar size within the same area? If so, how much are they going for?
What does the market within that area demand?
Have you spoken with any agents within the area? Most will be keen to just get the listing but there might be some who will offer frank and honest advice as to whether it would be worthwhile.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree with all the points above- you’ll need to crunch your numbers on a non renovated property vs a newly renovated property in your area. Is there any way of adding another bedroom or bathroom within the current floor plan without having to touch structural walls?
Hi Gurkosh,
We are property traders up in Brisbane and also do renovations as well. We are currently in a downward market and have sold four properties in the last 70 days. From our experience there are so many houses on the market to choose from that price has become a significant issue. If we are going to spend say $40,000 on a renovation we believe it would be a good idea to place the house on the market in an unrenovated state $40,000 less that the market rate (price appeal) and see how that goes for three weeks and then it doesn't sell then consider doing the renovation and sell at $40,000 more.
I hope this helps.
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
HI,
I think Jason's comments are timely in this market. Have recently done the same myself selling a place – and the concensus is the BEST you can hope for is to simply get your money back, and possibly make the property more appealing. And that is the best you can hope for unless you are able to perfomr the works extremely cheaply or have new kitchens etc lying around. Many people prefer to have input into these things themselves if they need replacement /repairs, and if they don't need doing, why bother? In some cases, you may make the property much more saleable, but not get the money back you have spent.
All the best with what you decide.
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