Hi, i am new to investing. We are just going to buy our first IP. it’s a unit. good for older couple due to no stairs, close to CBD etc. However, we are thinking of changing the old, patterned brown carpet in the house, hoping to get better rent yield, what do you think? the rooms also has older style build ins, with timber-like brown colour. i am also thinking of get the wardrobe door change to mirrors instead to increase the brightness of the room, and make it look more spacious as well. Do you think it’s costly and worth doing?
any feedbacks are welcomed.
cheers,New flooring can make a difference to both the yield and value.
I'd opt for something sturdy like floating floorboards over carpet – less wear and tear in my opinion. Also quite easy to lay yourself if you can be bothered.
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]
Yes change the carpet and maybe paint to freshen it up if needed. Mirror wardrobe doors are expensive so only do if really needed. Can you sand and then paint the doors?
You have to work out the cost and then decide whether it will give you extra CG and/or rent.
A tidy fresh place will attract a better tenant also. Look at it from a tenants eyes. Would you want to live with the old carpet?
Thanks for the feedback. the two bedroom unit is about 150K if they accept my offer. and it can attract probably 180 dollars a week, i reckon..or more if i change the floor. so, it’s about 6.24%. is this good enough?
How much would it cost to install anew carpet, and how much extra rent would you receive as a result of doing so?
Would steam cleaning the carpets be an option?
I am not sure how much it will cost to either change carpet or put floorboards but I don’t think the rent will go more than 190$ I reckon, in this area
It would be a fair bit of money to spend considering you'd only get an extra $10pw. I wouldn't bother. It would take a long time to get your money back.
Maybe just clean it as suggested. Could you do just the loungeroom? and paint so the living areas look more attractive.Hard to say not knowing the are it's in. At that price I'm guessing a small CBD/town? Can't comment on the yield either not knowing the area. Too low for me though.
Do not change the carpet until you finish the painting
100% agreed with duckster.
Do change the carpets and If you are renting out to old ppl make sure you lay brand new cozy and soft carpets.They will love that.Good Luck..
Go for it!
Re-painting, carpets and general updating of cupboard doors (don't need to go mirrored as they are more expensive) will all go well towards attracting a quality tenant at the higher end of the rental value.
At the end of the day your investment is only as good as the tenants that are in it – if the property is attractive you're more likely to get a quality tenant who will pay a little extra to have the comfort of new carpets and fresh paint. Whilst it may only get you an extra $10 a week as you say, it may minimize the time the property is on the market also.
I would advise against floating floors unless they are of a reasonable quality that is not easily scratched. Some of the cheaper products looks lovely and glossy at the start and then 2 years down the track the surface scratches look horrible. A nice poly blend carpet in a darker neutral colour is the best.
Not sure that $10 per week is enough to warrant the cost of replacing the carpet – depends how bad the existing carpet is. We replaced carpet, painted throughout and increased the rent by $25 per week…for us that was an adequate return given the carpet was thread-bare and needed replacing so really had no choice.
To give you something to compare re the yield on purchase price plus renovation….we have a 2 bedroom unit for sale for $139K, new carpet and paint, rented for $195 per week with long term (Dec 2013) lease. We recently sold an unrenovated unit for $130K which rented @ $175 per week. This showed me that everyone is attracted to an investment for different reasons. Whilst we can all give you our opinion only you know what fits with your strategy.
Hope that helps!
thanks so much, everyone. Lots of food for thought. I think if i increase the rent, the unit might be in the market for longer. and am not 100 percent sure if some people might be happy to live in a reasonable unit with older style carpet. i’ve actually thought of putting vinyl that is got timber – like pattern that is reasonably cheap and look good. i got one of those in my own kitchen. and probably just change the carpet in the living area. i will have to work out the price
Tracey B, why didn’t you renovated the unit before you sell it?Hi Blessingz,
The one we sold wasn't actually on the market. A purchaser came to view the renovated one which we advertised in the local paper and when they discovered they knew the tenant in the adjoining unit they made on offer on that one.
If you want to view what these are like to compare with your purchase turn on receiving messages in your contact details and I'll email you a link.
Also, re the timber-look vinyl – we've used that at another property and the good quality one was just as expensive as carpet but was non-slip and looked fantastic.
Cheers, TraceyGet advice from your agent
New flooring always adds value, however you want to make sure you can get the biggest bang for your buck
I think when doing cosmetic reno’s to increase your rent returns if you cant get your money back within 2 years it probably isnt worth doing
thanks everyone again. very helpful advice
Changing the old , browned patterned carpet will surely make wonder to the house interiors. I am not sure about changing the wardrobe doors to mirror. That might be costly, make sure you don’t overspend. Why not consult tradesmen to make sure you are making the right choices. There are some who can give you no obligation quotes from there you can review your budget. Will the improvement increase the rent yield of the property? I say it depends on the location of the property and the target market but generally yes!
I would try and wait till I could do a decent job with everything at once, paint + carpets + light fittings/door handles etc, if the carpet is serviceable might just need a good clean to last the next rental period.
Once you replace something like flooring with a new product then you realize how shabby everything else looks
Would just want to paint/freshen up the doors and handles rather than put mirrors there.I put the rent up on all my stuff $10 per year just to keep up with rising bills (water, council, insurance…). The floor coverings would need to be really trashed, or likely to cause someone to trip and result in a lawsuit to warrant forking out for new floor coverings and only charging an extra $10 per week.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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