I have just bought an ip in NZ. I am getting carpet, paint and drapes quotes for the property ( 2bedder and 1 bedder flat)in order to:
1. See what it costs to get that stuff done in NZ
2. Budget for a possible ‘jhoush up’to maximise rents AND have a valuation done to increase my equity in the ip.Am I dreamin’? What kind of increase in property value-dollar per dollar- can I expect on paint, carpet and drapes?
Or is that like asking how long’s a piece of string?
TSL
“The past deoes not equal the future unless you live there” Tony Robbins
The Saint
The re-valuation of the property when this work is complete IMHO would not increase too much. It will still depend on Land value, recent sales. In relation to improvements on the property in regard to a rental increase, I would try for a minimum of 15% of the cost of the improvement and add that to the weekly rental. I have always been able to obtain this in Australia with my properties.
Bradshaw
Hi Saint,
On one level all these cosmetic jobs should cost almost the same as in OZ. You should have no trouble getting these jobs done over the phone but you may notice some cultural differences when dealing with the Kiwi tradies and service providers.
Have you seen the property that you are trying to add value to?
IN your situation I would advise the following;
1) Obtain a detail building report with photos and estimates,
2) Obtain a valuation now (before you start the makeover)
3) Get on the phone and talk to the valuer and builder and find out what problems they have identified and how they anticipat they could be fixed. Try and find out the top valuation for your property in mint condition.
So now you have a starting point. You know what the problems are. You know current value. You probably know the anticipated top value.
Now all you have to do is get the jobs needed done on time and to a standard that will add value to the property and not detract.
Also get it done on budget.
Most people you deal with will be honest and obliging. But you have to consider human nature and jobs done that the client (paying the bills) may never see might not be done to the same standard as you would want. Especially when a new valuation is what you are after.
This also depends on your expectations and own personsal standards. Don’t forget valuers do this all day long. They see professional trade standard work too Good DIY work and everything in between. They know the difference.
Makes sure all parties know that your intention is to get the property revalued. Doing it remote this may be a tool to help you get the job done to the standard you need.
Any Problems you can give either Don or Liz a call on +64 212 357 140.
Cheers
[email protected]
NZ Investors & Property Spotters
Renovations & Project ManagementAwesome Bradshaw and Don and Liz. Thanks so much for the excellent pointers. I LOVE the idea of getting the valuation now, and sussing out what the yop value is. I’m also grateful for the tip on letting the tradies know it’s for re-valuation. Bradshaw, I’m not clear on what you’re telling me about the 15%. Are you saying – if I spend $10k on it, then I take $1500 and divide it by 52 and add that to the weekly rent?
Thanks again for investing time with me.
T“The past deoes not equal the future unless you live there” Tony Robbins
Hi The Saint,
The valuation will be a very valuabe tool when planing your reno. Even more valuable if the same mob come back to do the second one.
Cheers
[email protected]
NZ Investors & Property Spotters
Renovations & Project Management
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