Tell me… what are some of the things you guys do to houses (Ie. reno wise) to bring up the value of the house?
We bought a place that needs a lot of work and we dont want to go overboard with renovation costs. We are lucky about the kitchen as hubby is a Cabinetmaker (PHEW…) so that wont cost too much, but we don’t want to get caught in other areas.
How much on average would you spend updating the
1. Kitchen
2. Bathroom
3. Bedrooms
4. Exterior of house and gardens.
????Anyones response will be a help.
Cheers and have a great easter.
Scremin.[whistle]Success is 1% inspiration and 99% perspiration.
<<<<How much on average would you spend updating the >>>>
This is a tough question and would depend on what the property is worth.
You would not spend $20km on some of those $80k dog boxes but you might spend that on a $200k property.
You need to decide how much the property will increase in value by doing the renovation. I recall my estate agent investor (he was an estate agent who also owned property) told me that he wants to get a 20% return on his renovations.
For example if he spends $10k on a renovation he wants to be able to increase the rent by $40 ie $2000 a year. Hence a 20% return.
This is just a guide but something that I try and live by.
We bought it for $95K. Currently renting for $140 which is pretty good for the state its in. We are not too worried about rent return for hte moment as we plan on living in the house for a few years at first then wil rent a bit down the track.
We wanna use the equity we gain from the reno for investments on other properties. We were very lucky to the fact we bought the house $30K under current market prices.
The cool thing we can forsee eventually is the development of the back of the block as it is over 1000sqm! We are not going to go overboard though and get emotionally attached as we know we are gonna move on in a couple of years. We just wanna make it nice and comfortable and bring up the value of the property.
Thanks for input.
Success is 1% inspiration and 99% perspiration.
In the last issue of API there is a good article on reno,s.It is a very informative mag.A must have for investors.
Russ.So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Hi there,
I did a reno in Brisbane last year 23K and three and a half weeks full time with my dad got me:
New kitchen, new bathroom, new floor coverings, new paint throughout, new plumbing and wiring, several panes of glass for windows, front picket fence, new gravel driveway, two trees removed and stumps ground out, and a partridge in a pear tree!!!
195K purchase, 23K reno 300+K revaluation two months later.
Thats not bad in my book. Spend 23k, rental increase from 170-240 per week.
Cheers
CDCastleDreamer
G`day Scremin,I like to replace all old/sticking doors{or at the very least, the door handles}on the kitchen/bath/lounge/main bedroom as they are in the high traffic areas.Inexpensive to buy if you can hang/install them yourself.
As far as wet areas go, I recently used White Nite tile paint in my latest reno, with excellent results.A bit of prep. required,but a days work and $50 on paint is a hell of a lot cheaper than retiling.{also used “tub`n`tile” on the bath- same result}
I had intended to repaint the outside of this place as well, but after a clean with a gurni{pressure cleaner}it came up well.Hire a pressure cleaner and give it a clean first;you may not need to paint everything.
Concrete is not that expensive and keeps down weeds;trust me, tenents don`t pull weeds when they are on the way out!!Regards Terry
Thanks for tips TP.
Me and Cremin are still tenants and are battling the weeds at the moment so we know where you’re coming from.
RussH, just read the latest issue of API and the reno article kinda helped but it was still sorta out of our league. I mean it says the average reno costs about $70K!!! We by no means are going to pay that!!
I think we have narrowed it down to definitely the kitchen is being replaced (Cremin can make the new one at work…), the bathroom will also be updated, maybe moved but not too sure if it will be too much of a hassell.
Still a tight budget but I think we could do it all under $7K. The cool thing is we have time on our side. This is going to be the house we’re gonna live in so things don’t have to be done too quickly. Don’t get me wrong! I want them done! Just not so we are stressed and thinking about renos all the time….
Will keep everyone updated.
Success is 1% inspiration and 99% perspiration.
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