advice for selling IP VIC

[primaus]

Hi all,

I have held my IP for about 6 years. Given the purchase of my PPOR 2years ago - I believe it might be good to offload some of my debt as wife may stop working in the next 12 months to start a family etc

The IP is in nrth east melb.. about 12km from city.. around 670sqm.. 3BR 60s house unrenovated but good general condition. Currently, tenants are paying $390 pw on a month on month lease (havent increased rent for about 12months).

I am thinking of offering the property for sale around Feb/Mar with a 4 week campaign and straight to auction.


I am completely new to selling process so any advice would be much appreciated.


Questions
1. What are the best value added renos to do before selling? I am thinking polishing the floor boards, new paint, kitchen upgrade and bathrooms. What is a reasonable reno budget - I have pencilled in 15k
2. Or should I sell it as is?
3. The property is valued 600-650k therefore what is the expected comission payable?
4. Any other govt charges apart from CGT?
5. 30/60/90 day settlement?


I am thinking of giving tenants notice to vacate early nov (60 days), finish the renos Jan and on the market in Feb.


I am hoping the recent interest rate cut and the possible nov cut will help stablise/improve the houses in melb.

 

[wobbycarly]

Questions
1. What are the best value added renos to do before selling? I am thinking polishing the floor boards, new paint, kitchen upgrade and bathrooms. What is a reasonable reno budget - I have pencilled in 15k
2. Or should I sell it as is?

You are talking about 4-5 months of lost rent, PLUS your 15k (and possibly interest on the $15k) and that assumes you don't go over budget. Will the HOPEFULLY higher sales value cover this additional cost?

You might also want to find out what sort of person is buying in the area. At that price range, it's unlikely to be FHBs, so you're probably looking at upgraders or investors. Investors may be more interested in a the unrenovated, and upgraders are likely to be looking for all the hard work to be done.

Speaking to some local agents may help with the decision-making.

3. The property is valued 600-650k therefore what is the expected comission payable?

Last year, we paid 1.7% (+GST) + advertising. I've also been quoted rates like 3% (+GST) including advertising. Speak to a couple of agents, and see what they offer you.

4. Any other govt charges apart from CGT?

Can't think of any govt charges, but you will have legal fees and possible bank costs.

5. 30/60/90 day settlement?

Typical settlement time for auction in Vic is 60 days, but you can really state anything you want. If it's empty, then the longer the settlement, the more rent you're missing out on.

 

[The Y-man]

Questions
1. What are the best value added renos to do before selling? I am thinking polishing the floor boards, new paint, kitchen upgrade and bathrooms. What is a reasonable reno budget - I have pencilled in 15k

Paint regardless.

Floor - probably if scratched etc.

The rest - need to see photos.

The Y-man