I'm curious to know who does major renovations on IPs in order to increase the rent and increase the eventual sale price?
I'm keen to get into another IP, but with no "real" income to show, getting loans will be tricky (but not impossible, I think).
I've just looked at a couple of houses in the mid $500s local to me. I can go cheaper but the rent will likely be less too. I'm only just in the "thinking aloud" stage so my research on cheaper areas is just starting.
What I'm thinking though is that rather than go to, say, Slacks Creek where I could buy a house for under $400 and it might rent for between $300 and $400 (just after a quick look), perhaps I'm better to put $150K into a house we have in Coorparoo to double the size, remove the ugly closed in verandahs and put three bedrooms and another bathroom downstairs and a living area. I reckon we could do this for $150K or $200K. I would not do this unless we would get back at least what we spend plus some profit in the deal. But let's say the house is worth $650K now and we spend $150K and the house then is worth $900K for the purpose of my question.
I'm guessing if we are getting $450 per week (probably worth $470 or slightly more in January when we renew) for a three bedroom, one bathroom house, then we are likely to get $700 to $750 per week once renovated, for a five bedroom, two bathroom, two living area house.
All these figures are very loose, but I guess I'm wondering if, instead of buying another lower value house in order to have more property to rise in value when the market rises, this would give us no more property in actual numbers, but each property would be more valuable.
I know I also have to factor in the fact that we will pay more tax on the gain if/when we sell, but as a general idea, is this something people do.
We've done lots of small and medium sized renos but never actually built under an IP or added rooms (have added decks).
I'm keen to hear what others think of this idea or whether we are just better to buy something further out that needs nothing done except maybe a paint job and light reno?
I'm keen to get into another IP, but with no "real" income to show, getting loans will be tricky (but not impossible, I think).
I've just looked at a couple of houses in the mid $500s local to me. I can go cheaper but the rent will likely be less too. I'm only just in the "thinking aloud" stage so my research on cheaper areas is just starting.
What I'm thinking though is that rather than go to, say, Slacks Creek where I could buy a house for under $400 and it might rent for between $300 and $400 (just after a quick look), perhaps I'm better to put $150K into a house we have in Coorparoo to double the size, remove the ugly closed in verandahs and put three bedrooms and another bathroom downstairs and a living area. I reckon we could do this for $150K or $200K. I would not do this unless we would get back at least what we spend plus some profit in the deal. But let's say the house is worth $650K now and we spend $150K and the house then is worth $900K for the purpose of my question.
I'm guessing if we are getting $450 per week (probably worth $470 or slightly more in January when we renew) for a three bedroom, one bathroom house, then we are likely to get $700 to $750 per week once renovated, for a five bedroom, two bathroom, two living area house.
All these figures are very loose, but I guess I'm wondering if, instead of buying another lower value house in order to have more property to rise in value when the market rises, this would give us no more property in actual numbers, but each property would be more valuable.
I know I also have to factor in the fact that we will pay more tax on the gain if/when we sell, but as a general idea, is this something people do.
We've done lots of small and medium sized renos but never actually built under an IP or added rooms (have added decks).
I'm keen to hear what others think of this idea or whether we are just better to buy something further out that needs nothing done except maybe a paint job and light reno?
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