Which one is the better choice?

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L30V4L
Participant
@l30v4l
Join Date: 2016
Post Count: 1
June 28, 2016 - 8:56 am
Location: Hills district – cul-de-sac location, land: 700 sqm
Current valuation: $1.3M (median 4-beds house price: $1.1M (RP Data); came to auction last Saturday, inferior property with 3 beds and 2 bath plus pool, cul-de-sac location-> $1.23M)
Before reno: 4 bed, 2 bath, 1 garage, 1 carport, 1 patio, 1 pool; current living area including patio: 140sqm
1st option:
adding second storey, about 90 sqm for 1 new master bedroom (bed, ensuite, WIR -> 40sqm) , 1 std bedroom (16sqm), 1 toilet only, 1 study/home office in open space (24sqm)
after 1st option reno: 5 beds (remove 1 bed from ground lvl for access), 3 bath, 1 toilet, 1 study/home office, 1 garage, 1 carport, 1 patio, 1 pool; expected living area: 230 sqm
cost estimate: $240k
2nd option:
ground floor extension – for master bedroom spec as above (around 40 sqm) + garage conversion (around 24 sqm) + existing patio conversion (in between garage and current living room) into indoor/outdoor space by adding ceiling and door and windows overlooking the pool + creating another patio
after 2nd option reno: 4 beds (remove 1 bed from ground for access), 3 bath, 1 carport, 1 patio, bigger living area incl study and home office in the converted garage; expected living area: 220 sqm.
cost estimate: $150k
Purpose: to live in the house, hold, and maybe to sell in the next 15 years
Funding: equity release
My questions:
1. Is it a worthy renovation?
2. Is my cost estimate too low?
3. Can I get at least 1:1 cost to added value post renovation?
4. Did I miss something?
Cheers
- This topic was modified 7 years, 9 months ago by L30V4L.
- This topic was modified 7 years, 9 months ago by L30V4L.
- This topic was modified 7 years, 9 months ago by L30V4L.
Philpog
Participant
@philpog2
Join Date: 2015
Post Count: 1
June 28, 2016 - 3:31 pm
I am not a developer but my question would be what are the demand for and selling price for each of the properties in the two scenarios. Eg no point renovating and making a 5bdr house if there is no demand or the price you would want to achieve is less than what other houses are selling for.
If this is going to be your ppor then what do you want/need?
If this is a first Reno would you consider updating within the current footprint rather than major changes? Eg a new bathroom/ kitchen may give you an increase in value for much less investment. Plus there is a benefit in learning on a smaller Reno.
I am sure others more knowledgeable than me will give you more specific response to your questions.