Adding value/equity without major renovation

I'm looking for ideas on increasing equity without major extending/renovating, (mainly due to small block of land and property is still new).... I purchased IP 2 in North Lakes, north of Brisbane last year. It was a 1 year old 4x2x2 house on a small block, (312 sqm) for 361K. I chose the location based on potential growth drivers - New Costco, Ikea and rail line being built, Stockland nearing the end of land releases after 10 years, low vacancy rates, good depreciation being a new house, and I believed the property itself to be slightly undervalued. I know land value is what drives capital growth but the aforementioned drivers, (to me anyway), still outweighed the small size block.

I am looking to purchase IP 3 and want to use equity for a deposit. IP 1 is in Emerald and only being purchased 12/18 months ago won't have have seen any growth in that current market. We used equity from our PPOR Suncorp loan to fund deposits for both IP's and whilst we still have a little equity available, with two young children and a wife working only one day a week, I'd rather have a buffer up my sleeve. My income is around 135K and the two IP's were 90 LVR's with CBA.

The location is near the new Costco and the same sort of place in the same street sold for 370K the same month we bought, (hence why I thought ours was slightly undervalued). I have now seen at number 6 in the same street a 3x2x2 and same size block for sale at 429K, (http://www.realestate.com.au/property-house-qld-north+lakes-115645663), which appears to look much the same as mine but with 3 bdrms and am wondering why it's listed so high... There's perhaps a few nicer touches like a little bit of decking but I can't see why it's so much more. There's also a new 4x2x2 on 325 sqm in a different estate at 429K, (I realise they may not actually sell for these amounts).

RP Data seems to have our place estimated between 275-350K, although CBA's "My Wealth" page has it at 342K but yet, RP Data's valuation of number 6 in the same street is much higher than mine and I can't see mine having increased from 361K in just 6 months with nothing done to it. I know RP Data can be hit and miss and depends on other sales but what can I do to increase it's value, given it's limited renovation potential?
 
I'm looking for ideas on increasing equity without major extending/renovating, ....... but what can I do to increase it's value, given it's limited renovation potential?

Don't put much faith in automatic vals from software packages - can be out by $100+K in some circumstances.

The only way to increase val is:
1. Increase the number of bed, bath, car. (biggest value add)
2. Add a deck
3. Add some landscaping
4. Renovate the kitchen & bathroom to a higher standard
5. Add storage (loft? if applicable)
6. Look at paint, floor treatments, window treatments
7. Add street appeal - picket fence or render & paint external brickwork (if older red brick, say)
(some of these are minor value-adds, if anything)
 
Your other options include getting a val from another lender but not just a full val instead a kerbside or in ANZ's case a system val. I have found that ANZ's system val's are a basket case. Some come back extremely poor and some come back surprisingly good.
 
I work as a lanscaper now.
How much would the price increase If I made a drought resistant garden,new paint etc,solar power.
I don't have a house yet and won't for a while and was just wondering if it would be worth renovating on weekends.
 
HI Blueice

My house at NL is close to Westfields and the colleges and I have been told by local REagents that it has increased about $40K in the last 12-18 months.
I cant speak for the blocks at the other end of NL, but have you spoken to the agent you purchased through, he or she can give a better idea than any computer software.
 
I work as a lanscaper now.
How much would the price increase If I made a drought resistant garden,new paint etc,solar power.
I don't have a house yet and won't for a while and was just wondering if it would be worth renovating on weekends.

Yes, but maybe start a fresh thread of your own.:)
 
It's a lot harder to renovate something that is so new, but maybe throw up a few pictures of the property and people can comment/give advice on where they think you can improve?
 
Just because it is listed at $429K does not mean that it will actually sell for that price. Once the property is sold you will get a better idea.
Marg
 
I think it can really depend upon the street as well.

If your house is in a street where most of the houses are pretty rough looking from a street view, I would definitely redo/add a feature front fence, landscaping, fresh paint/render and repaint the gutters and fascia.

I have done all of the above for under $5,000 and in under 7 days. It really set my house apart from others in my street and listed and sold the house for $25k more than originally estimated pre-reno.

adding a bathroom or bedroom is the ultimate though.

__________________________
J.
Gold Coast Church Pastor and property investor - building personal wealth to give back to my community and assist others.
 
Thanks Angel... After seeing the RP Data estimates, I mentioned to the agent I bought it through, and he said it'd be worth more now than when I bought, but I didn't pursue any further, (all agents would say that of course if they think you'll be a client).

MichaelPark... I have attached some images, so as you can see it's pretty basic, but there are quite a few places that look the same in the street. I can see that number 6 , (from the link I posted), has some nicer touches than mine. Since I do have some spare cash, perhaps I could do some decking like number 6 and make the front of the house a bit more presentable with a fence...
 

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Wait until the house up the road sells and then you will have some recent sales evidence to support an uplift in value of your property.

If the only sales in your street recently are around the same value as you purchased then any valuer may struggle to put a higher value on it.
 
Great news! I noticed that number 6, (as per the link I provided), has sold, so I spoke to the agent who said it went for 415K. She said it was "pretty" and well presented and she also sold another one around the corner in a different street on the same size block for the same price. That's awesome news as it will lift my value due to comparable sales, meaning i will have made at least 50K in 6 months!

I think it's time to "pretty" mine up a but, get it reval'd and then extract the equity as deposits for IP 3.... This is exactly what I was wanting... Now I just have to wait for the big coal projects in the Gaililee Basin to kick off and lift the Emerald market again.
 
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