Hi I'm 21 and just bought my first ppor. I have aspirations to own a IP in 12 months. My loan is intrest only with an linked offset account. My question is ; my house is a 2 bedroom 1 bathroom there is a room which can be possibly converted into a 2nd bathroom. Now should I be worrying about trying to add value with hopes of refinancing in 12 months and drawing out equity (eg, verandah, painting , carpets , 2nd bathroom) or should I just be concentrating on saving as much as I can and putting into the offset account to use as a deposit in 12 months time ?
Painting and carpets would be an idea to increase value. I wouldn't see much point in a second bathroom in a 2bedroom house or a veranda(unless you built it yourself it would be expensive and i don't think you'd get the equity back from it) . Have you considered a 3rd bedroom. Sometimes the cheapest and smallest thing can add value so scope out homes in your area and see what styles are selling high and why
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
So you saying minimal things more cosmetic? I'm an electrician and pretty handy on the tools could do most of the work myself but cost of materials is still quite expensive. The house is still quite new just on 5 years old just trying to figure what's my plan of attack
Also if I were to do the second bathroom it is next to the main bedroom and was considering making it an ensuite but still not sure whether to just stick with saving
Hiya
I'd do both – some renos on the PPOR as well as saving as much as possible into the offset. I'd stick with affordable, cosmetic renos to add value and if you're handy – do it all yourself.
A second bathroom will cost a fair bit – you'll need to be reasonably confident it will add a fair bit of value.
Are there similar 2 bedroom/ 2 bathroom properties in the are? If so, see how much they sell for to get an idea of what yours could be worth if carrying out that work.
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]
Cosmetic would be the best option.Cheap things like light fittings,door handles, blinds, mirrors and tidy up the gardens lawn. They are cheap and effective ways and you'll still have money behind you which will also help.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Ahh thanks so much for the replys cleared up alot of questions
How big is this room ? That you want to turn into a bathroom?
Personally a 3rd bed would add more value . Unless it is in say a upmarket tready suburb. Where that possible room
would generate more return as a walk in room/ensuite for urban professionals etc .
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