Adding value in Brisbane

From: J Parker


I'm curious to know what Brisbane investors have found increases the value of their renovated properties. I had grand plans for adding a deck to my 3 bed IP but, alas, have had to put them aside due to budget constraints at this time.
I am doing a new kitchen (with nice appliances), knocking out an internal wall to maximise space, polishing floors and putting new window coverings up. Would like some input from those who have done it before and can tell me what really adds to that all important valuation. The rent is important too, but I want the valuation to be increased as much as possible, for more equity. Any suggestions welcome!
Cheers, Jacque :)
 
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Reply: 1
From: Rick Gibson


Jacqui,

We have just done a renno in Clayfield and would be happy to chat to you about what we did and how we added value.

We spent around 25k for a 75k increase in value so it wasn't to bad. The rent also went from 180 to 250 per week with the tenants going from 4 bachelors who were pigs to a middle age family who mows the lawn, weeds the gardens and even fixs thing around the house for me.

Painting probably adds the biggest bang for your buck in my opinion. I also like landscaping, a nice fence and a nice carport and polished floors always go well. Be careful with Kitchens though, money can easily run away with you when often laminex paint and new handles will do the trick.

If you want some info on what we did drop me an email or catch up with me at brissie freestylers.

Good Luck

Rick
 
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Reply: 2
From: Brett Burt


My view is stay out of Brisbane. Spending all that money on your Brisbane
property may be overcapitalising and you may not get it back for a very long
while. Brisbane has had very little capital growth in the last 6 years. I
know, the REIQ figures show 50% growth here and 20% here, but the reality of
it is when you look at actual sales. My agent told me yesterday, after
selling my 3 bedroom townhouse at Morningside taking 4 months to do it ( I
purchased $155 in 1995 and sold yesterday for $187,500....pitiful growth !)
that 'good' suburbs like Bulimba are peaking now! Can you believe it? The
bloody joint is peaking and it hasn't even really grown, if we deduct
inflation !
I am certainly 'cured' in regards to Brisbane property. If your looking for
capital growth, Central Coast NSW, western suburbs of Sydney and some areas
in Melbourne. Forget the rest. If your not in these markets, my view is sell
and get into them.

----- Original Message -----
From: "propertyforum Listmanager" <listmanager@bne003w.webcentral.com.au>
To: <Recipients of 'propertyforum' suppressed>
Sent: Tuesday, January 22, 2002 7:19 PM
Subject: Adding value in Brisbane


> From: "J Parker" <jacqueparker@ozemail.com.au>
>
> I'm curious to know what Brisbane investors have found increases the value
of their renovated properties. I had grand plans for adding a deck to my 3
bed IP but, alas, have had to put them aside due to budget constraints at
this time.
> I am doing a new kitchen (with nice appliances), knocking out an internal
wall to maximise space, polishing floors and putting new window coverings
up. Would like some input from those who have done it before and can tell
me what really adds to that all important valuation. The rent is important
too, but I want the valuation to be increased as much as possible, for more
equity. Any suggestions welcome!
> Cheers, Jacque :)
>
>
>
> To reply: mailto:propertyforum.20385@bne003w.webcentral.com.au
> To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
> To login: http://bne003w.webcentral.com.au:80/~wb013
>
 
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Reply: 2.1
From: David Searle


Aww come on Brett!!- so you had some ordinary growth on a townhouse at Morningside
Why??
Bought the wrong thing at the wrong time for the wrong reasons??? Only you can answer these questions. However, I don't follow the logic that would lead you to conclude that there are only 3 areas in the country (nice to see you put the central coast in first ;^) )to make growth in IP's.
Taking 2 of our Brisbane IP's as an example:
Duplex New Farm:
Bought 1993 $157,500
Spent $15,200 on Kitchen/Bathroom
Valuation 12/'01 $462,000
House Auchenflower:
Bought 1992 $131,000
Spent ~$2,000 on Paint, Hospital bills
Valuation 12/'01 $355,000
Not spectacular by any means and many of the Gurus on the forum would receive much higher growth than this- however unless the inflation figure you mention is that of the Argentinean Peso, I think you'll find that well selected properties in areas with the fundamentals for growth will continue to appreciate net of CPI. Equally, I'm sure the likes of Simon and Julie/ Michael C who are busily counting their gains in the Canberra market, as listed in a recent posting, are more than happy they didn't subscribe to Mr Burt's interesting theories,
DavidS
PS great forum!!
 
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Reply: 2.1.1
From: Brett Burt


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Have you actually sold them or just valued them? I can give you =hundreds of examples where property has done very little in Brisbane =since 1995. My information is based on owning and and selling investment =properties in Brisbane. All properties were at valuation. No two tiered =crap. Yet I cannot think of any who have made much in terms of capital =growth. (compared to Sydney or Melbourne).

I am happy that you have had great success. Quoting individual cases =often sounds impressive, but I have heard this all before and talk is =cheap. My experience in this instance is not theory, it happened. I put =the property up for sale it took fair while to sell and the profit was =poor. I paid for the property at valuation which I saw, never had =vacancies, had good property management and a great real estate agent =and still made very little. In hindsight I think Brisbane property is =based on too much 'theory' and not enough action.

But I suppose the same applies to the Gold Coast. People keep telling me =how much they have made there but when I look at prices in 1995 and =today I cannot see much difference.

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Have you actually sold them or just valued =them? I can
give you hundreds of examples where property has done very little in =Brisbane
since 1995. My information is based on owning andand selling =investment
properties in Brisbane.All properties were at valuation. No two =tiered
crap. Yet I cannot think of any who have made much in termsof =capital
growth.(compared to Sydney or Melbourne).

I am happy that you have had great =success.Quoting
individual cases often sounds impressive, but I have heard this all =before and
talk is cheap. My experience in this instance is not theory, it =happened. I put
the property up for sale it took fair while to sell and the profit was =poor. I
paid for the property at valuation which I saw,never had =vacancies, had
good property management and a great real estate agent and still made =very
little. In hindsight I think Brisbane property is based on too =much
'theory' and not enough action.

But I suppose the sameapplies to the Gold =Coast. People
keep telling me how much they have made there but when =I look
at prices in 1995 and today I cannot see much
difference.

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Reply: 2.1.1.1
From: Anonymous


Brett,

If you didn't make money in Brisbane, you obviously didn't know what you were doing.

My guess is that you were buying/selling townhouses or flats in areas where there was an oversupply. And I'll put money on them being properties that you bought while you were with The Investors Club or Property Investors Group.

On the up side for you....I guess the $3K - $12K that you made from selling each one of the IC or PIG properties made up for what you missed out on with your own properties... :)

Why don't you give us some details of what you didn't make money on?

Regards

Not Telling
 
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Reply: 2.1.1.1.1
From: J Parker


David....hospital bills?!
Cheers, Jacque :)
 
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