Hi there,
I am looking a purchasing a pair of 3 bedroom semi's.
one currently has a long term tenant with ill health and the other is empty. If we were to purchase, we would leave the tenant in number 73. if we were to renovate number 75, we would have one 'good side' and one 'bad side', as they are currently both in terrible condition. They are on one title so i have a few questions:
– if we were to renovate number 75 and then get a revaluation done – would they value them individually or as one house?
– Will the condition of number 73 bring down their opinion of the property (both sides) therefore affecting the valaution? So basically if one side was worth $200k due to renovation (agents appraisal) but the other side was worth $100k, would this be reflected in a $300k reval or would they look at it and say, one side is shocking so the bank would struggle to resell?When i say shocking, it is purely cosmetic, nothing structural.
Our aim is to purchase, renovate one side, wait for tenant to pass on or move out, then renovate other side using equity from 'good side'. But I am worried the bank will see it differently, due to our last very disappointing reval…
Any comments appreciated.
I am not a valuer or finance professional, but:
-If they are on the same title, the valuer would have to value the units as one. If the units can only be sold in one line, then they would have to be valued in one line
-If one side of the duplex is in terrible condition, then the vlue would be brought down by that unit as they are being valued in one line. Even if it is cosmetic, it would be hard to sell if it doesnt look appealing. The banks are always concerned about hopw much they can sell the units for if everything goes pear shaped and you stop paying the interest bill, as they need to limit their risk.You could try ringing up a valuer in the local area to ask them to give you their opinion on the valuation if you need a certain answer.
Cheers,
LukeGood idea about talking to a valuer. Sounds unlikely as a plan though.
When we have bought flats on the one title the valuer has looked at a per flat comparison, so 2×2 flats they can even look at single 2 bed flats in the suburb as a comparison.
So Andrew are you saying that it would be favourable if they did the same for us, compared ours with stand alone houses?
So they would compare stand alone 3 bedders to ours etc?I have looked at unrenovated comparables, 3 bed , 1 bath, stand alone houses within 500metres of ours and they are going for $200k each but they have a garage or carport.
Ours have a carport behind a gate at the back of the block so thinking that will detract a little.
I think a $170k each valaution would be fair. considering ours would be completely renovated…
and i have since found out, its not classed as a duplex, its just 2 houses on one title, each with their own street number and block.
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