Hello All,
This is my first post. I currently live my PPOR in the North Western part of Sydney. I would like to sell this house in order to use the funds to purchase two investment properties – hopefully more down the track and I am happy to rent to achieve this goal.
I am unsure at this stage on how much should I spend fixing up the house prior to selling.
The items outstanding include the main bathroom isn't that flash, but if scrubbed, can look just OK. The eves require attention – they are starting to sag and look quite untidy. The previous owner has put in ugly brown windows and doors and the paint job around the skirtings has gone over the brown windows.
Do I
1. Put a new bathroom in?
2. Repair the eves?
3. Replace all windows and doors in the house?It is a two storey blonde coloured brick home approximate 41 years old. Hope someone may have some advice and ideas.
Thank you.
Nikki
Hi Nikki
Welcome to the forum.
I'm not sure of your financial situation but have you considered accessing the equity in the property to fund the purchase of the investment properties? It's hard to comment whether it's a viable/good option without knowing the numbers however.
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]
Hi Jamie
Thank you for responding. There would be around $400K in the property. I had thought of renting the property out and renting myself, however it is a high maintenance, very slopy block, the house needs around $100K spent to bring it up to scratch – put a pergola out the back, new slab under the pergola, new bathroom and toilet, new balcony at the front, fix the roof etc etc. I just thought it would be seriously overcapitalising so the better option would be to sell it, and start again with the cash.
It is a great spot, backs onto bush with a fabulous pool, but the house – aaghhhh!! It is a big money pit.
Thanks again,
Nikki
I think the doing up part comes down to the sums. It is only worth repairing or doing up if it will bring in more funds than the cost of doing it.
Also, I would suggest selling now to buy 2 investment properties may not be such a good idea. For starters you will lose the CGT concession and the market is pretty flat now in Sydney – you may get more by holding on. Renting now and keeping could also mean you could avoid CGT for up to 6 years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
you may be surprised by how cheaply you can replace the shower screen, tapware, towel rail & vanity, regrout/spray the tiles & bath. Replacing fascias & gutters would also be reasonably cheap as well. Is paint a solution to the ‘ugly’ windows?
Thank you Terryw for your advice re the CGT. It is certainly giving me something to think about. Perhaps renting out the PPOR and renting and perhaps pulling out further equity and using that for the next property.
Thank you also Scott No Mates (love the name!), I will get some quotes for the roof as it needs to be corrected either way. The unfortunate thing with the bathroom is that it doesn't even have proper tiles, it is that spray on stuff with the lines. It is starting to leak, so something needs to be done either way. Will also have a closer look at the windows and see if they can be cleaned up re the paint.
N
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