Hi all,
I'm currently looking at buying a property with some renovations done already. I just wonder if anyone can help me work out how much these renovations cost so that I can adjust the purchase price accordingly.
The renos are about 4 years old and include:
1) polished floorboards for a 3 bedroom house
2) wooden built-ins for all the bedrooms
3) external and internal paintwork
4) air conditioning
5) 1 full bathroom with a spa bath
6) additional shower and w.c in the laundry
7) insulation
wooden picket fences around the property
9) landscaping
10) paved driveway
11) deck and pergola
12) tandem carport with pitched roofAll commemts and advice are welcomed. Thank you in anticipation.
The best thing to do is hire a Quantity Surveyor to prepare a DEPRECIATION SCHEDULE for you.
They will itemise every item and more you didn't even think of. Worth every cent.
This costs around $500, is tax deductible and will pay for itself in the next tax return. You then give the schedule to your accountant and they apply it to your tax return each year.
I don't really understand why you want these figures so you can adjust the purchase price. Either the purchase price on the house is appropriate for the house as it is now, with all the work done, or it is too high and you want to buy it cheaper.
I thought maybe there are other houses you are looking at that are similar to this one before all this work was done and you want to know whether it is worth paying the bigger amount to get the house that has been renovated as opposed to buying a house that needs all this done.
Is this what you are getting at? Or have I got it wrong?
Wylie
Thank you guys for your responses. Let me just clarify my point. The house I'm looking at is actually up for auction. I was thinking if I knew the UCV for the block of land, age of the house and the cost of any renovations done, I can roughly estimate how much the property is really worth, which helps me to determine my maximum bid at the auction. So am I on the right track?? Is that how people work out how much they are going to bid at auction?
wooden picket fences around the property
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