Hi Fellow Readers and Members.
I would like some advice on deciding on where to renovate first to add value so that i can have the my investment property revalued upwards with the bank.
I have recently got a quotes for following,
Roof Restoration $3700
Front of the house rendering – $2650
Brand New Kitchen $7000 (just happens that the neighbor to the investment property owns a cabinet making, Joinery Business)
Polish the floorboards – $2000 ( I haven't asked around but a guy i know says he can do it for 2K)Toilet is pretty good but – Old Style – Haven't Got a Quote but i have seen a nice vanity for $410, could make the bathroom heaps nice for under $1500
The front garden is pretty Huge and not very appealing and has a low fence to the street, hence very visible so thats a negative.
I was thinking of getting a few tons of pine bark chips and spreading it around the plants.
I need help deciding Which one of these should be top on my priority list.
Obviously My goal is not to spend too much money.
I am having hard time deciding which way to go out of the following two options:
Option 1 – Spend the cash i have to Renovate this property. Revalue the property, and use the equity (Cash Flow) for subdivision of land i am planning.
Option 2 – don't spend any money on the investment property. Spend all my money on getting the block subdivided, and building a property there.
Basically i can either do one or the other. I do not have the resources to do both.
I Could really use some help here.
Hey Nepash
I guess if you want to make slight increase to the Rental Price of your Investment, you would do a few minor works on the property…
I've worked in Property Management and noticed that generally the Kitchen and Bathroom are the decision makers or breakers… When women are concerned, these are the two main areas in a house most important + most used (for self and entertaining guests!) Go for options which are in your budget, check out Freedom flat pack Kitchens http://www.freedomfurniture.com.au They are pretty stylish, good value + affordable. You can normally install these yourself – or ask a Handy-Man (maybe a friend) to give you a hand!
Because first impressions are important too, you could simply strip your front yard (pot any plants you don't want + offer them to your neighbors
for a Christmas gesture!) and lay some lawn (Buffalo Grass is great in a drought!) Roll the lawn flush with the house + add a feature tree (ie. Japanese Maple) that will add colour and shade over the years! Or you could replant your favourite plants either side of the path to your front door… I'm not Jamie Durie but know that with a constrained budget, your money could be better spent elsewhere + this is a simple and cost effective way to tidy up a currently unappealing front yard!If I were in your shoes and had the same vision (sub division etc), I would first spend a few $$$s on a small reno (and ask friends to help out to save some dollars!) and have the Investment property Re Financed. I would then use the Equity to Sub Divide the block + (1) sell the land; (2) submit Architect Drawings to Council for DA and sell with approved plans; (3) if there was substancial Equity in the property, would Build on the Sub Divided Block with the option to rent out, live in or sell…
…This way you could add value to your Investment (both Equity + Rental) and potentially have the borrowing capacity for a Sub Division, Plans and or Construction of a new Investment property!There are so many options, but only you know your finances and means… Hopefully these ideas are a start for inspiration!
PS
Make sure to research everything before you make any decisions. Visit your local Real Estate office to find out from a Property Manager an expected rental value for a renovated property + a Sales Agent for an expected market value for a parcel of land with or without DA on plans!
Good luck Nepash
Beth Ashton
as its an I.P your valuation may be dependant on the revised rental income, and a roof restoration wont help to get a better rent.
kitchen & bathroom is quite important for rentals. bear in mind though, spending $7k on a kitchen is unlikely to add $7k to valuation……..unless its absolutely repulsive like avacado green 1960's.
gardens are a waste as the tenant will not look after them. likewise, polished floors will get trashed.
the best bang for buck is without a doubt PAINT, but you have not mentioned it.
render could help a lot, street appeal is important.
you may find that a revalue in this climate will not be very high, so maybe option 2 is best?
have you considered rendering & polishing the floors yourself? its VERY cheap!
for a Christmas gesture!) and lay some lawn (Buffalo Grass is great in a drought!) Roll the lawn flush with the house + add a feature tree (ie. Japanese Maple) that will add colour and shade over the years! Or you could replant your favourite plants either side of the path to your front door… I'm not Jamie Durie but know that with a constrained budget, your money could be better spent elsewhere + this is a simple and cost effective way to tidy up a currently unappealing front yard!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
