Gday,
Looking at injecting new life with $20,000 on a kitchen or second bathroom, I have looked in my area and the houses with a second bathroom sale price is higher. Creating equity in my house will give me a deposit for the next house and experience of the hardships and joys of renovation.
My big question: Is it possilbe to get a valuer to give you a price on completion of a renovation, so that you know what renovation has the highest capital gain for dollar spent?
Appreciate anyone that could give me an insight into this planning phase of renovation.
Andrew
Hi gumtree
Some banks will allow you to do a reval whilst others will require an application to be submitted first. If your current bank requires an application to be submitted then consider paying for one yourself and save the hit to your credit file.
By comparing the last valuation to the new one you’ll have an idea of how much value your renos have added.
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]
I think he means an estimated value so he knows where the money would be best spent.
Do some research by looking at similar houses in the area. I would think a second bathroom would add good value. But then again so does a kitchen.
I wouldn't spend $20K on a kitchen,, or a bathroom.For $20K I reno a whole house- new bathroom, kitchen, carpet, paint (well for $15K actually). But doing most work ourselves. We pay a tiler $2K to waterproof and tile the bathroom.
Cheers Catalyst and Jamie,
Currently with the commonwealth but wondering if you could show a valuer specific planned renovations ie kitchen/bathroom and get a value that the house would be worth when completed.Inspiring to hear you can do it all for $20K, see how I go in the next six months
Cheers,
AndrewI say talk to a valuer first-because spending $20k on a new kitchen or bathroom- as spending 20k may not = $20k in value in terms of equity/valuation.
You be surprised….what you think is worth 20k is not the same as what a valuer may think.
your best to
1. know the rules of what a valuer looks for
2. play by the rules
3. Use the funds wiselySometimes a simple process of cleaning up the place and giving it life ( new paint) and more space, maybe change some vanity only + have some fresh coffee smell brewing o the day the valuers comes, brings a higher value then any physical renovations.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
gumtree wrote:Cheers Catalyst and Jamie,
Currently with the commonwealth but wondering if you could show a valuer specific planned renovations ie kitchen/bathroom and get a value that the house would be worth when completed.Inspiring to hear you can do it all for $20K, see how I go in the next six months
Cheers,
AndrewYou can + the bank will charge you the valuation. Not all banks does it- But if your with CBA that’s fine as they do allow on completion valuations- but note if you need the $$ to complete the renovations they will control the funds + it needs to be a fixed price.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I just had this problem with CBA. I bought a property that was fire damage (not structural). I bought it for $15K more than the land value.
So I said just lend to me on the land value if that's easier.We need to replace the hall gyprock and ceilings. Lots of scrubbing of smoke.
The stuffed around. Sent the valuer out. Asked for builders quote. When we said we were doing it ourselves they said they don't lend to owner builders. It's only a $25K reno. So I got a quote and sent it to them. Still stuffed around a week before settlement so I told them to stick it.
I will get it valued after the reno and finance then.It would be a challenge to know the exact amount on how much you've added to the value of your property before you reno the property …usually you do this after the reno is done. But, having said that, if you know the valuer of your financier, use them and tell them how much you will be spending and which room you will be upgrading etc., maybe then you get the idea on how much you've added to the value of your property.
DHCP wrote:It would be a challenge to know the exact amount on how much you've added to the value of your property before you reno the property …usually you do this after the reno is done.If you don't know what the value will be after you do a renovation you should not be renovating.
You NEED to know otherwise you don't know how much to spend and whwther it is worthwhile doing.
It's not rocket science. Just do some research on what similar houses (but renovated) are selling for.Catalyst wrote:DHCP wrote:It would be a challenge to know the exact amount on how much you've added to the value of your property before you reno the property …usually you do this after the reno is done.If you don't know what the value will be after you do a renovation you should not be renovating.
You NEED to know otherwise you don't know how much to spend and whwther it is worthwhile doing.
It's not rocket science. Just do some research on what similar houses (but renovated) are selling for.looks like you not reading the post accurately….read it again…I'll give you some time.
The key word is "EXACT"…you can do a rough estimate of how much value you be adding, but the precise figures, I doubt it.
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