Do you think I added any value?

[Tim86]

According to a bank valuer for refinance do you think I've added any value? The first two pictures have all 3 stages of reno, from when we purchased it, then until 2 days ago, and then today.

I thought I would give it a quick 2 day makeover before bringing the valuer in next week. I did a few things around the place, just the things that made it look like an unfinished project.

But do you think my huge $450 makeover... will actually make a difference? If so how much?

Also since the last bank value where it got valued at $450k I've enclosed the front deck and added a 3rd ensuite to the house and a 2nd kitchen (basically doubling the size of one of the bedrooms because now it leads out onto the enclosed deck and now it has it's own ensuite and kitchen). Would that increase the value at all?

Also we've added solar electricity and solar hot water...not too sure if that adds anything...

 

[Rixter]

Structural reno's like adding bathrooms & bedrooms definitely increases value. You need to look at recent comparative sales to gauge its value.

Also cosmetic reno's, like paint inside & out along with new floor coverings and garden tidy ups increase value.

 

[westminster]

yes I think you've added value.

From my perspective the next cosmetic things I'd do would be to get rid of the green on the elevation and replace it with a grey/charcoal and paint/seal the driveway.

 

[DaveM]

Errr... why add a second kitchen?

 

[Tim86]

Errr... why add a second kitchen?

Now it's kind of like a little flat. Still a bedroom in the house, but fully self contained. I rent the house out as share accommodation so get a premium for rooms with their own bath and kitchen.

Thanks for the other comments. I'm hoping to get a value of $500 000 as prices have increased about 10% in my suburb in the past 6 months (at least land has gone from $290k -$338k for a 400m2 block). Also the previous val was comparing the house to properties that sold 12 months ago. So the values have definitely gone up since then and that val was for $450k for the property. I'm hoping the price increases and the renos will make a difference. I'm considering doing the driveway do you think it would be worth it before the re-val? Also we are doing all the green trims in gloss black like the fence slats.

 

[wylie]

I'm considering doing the driveway do you think it would be worth it before the re-val? Also we are doing all the green trims in gloss black like the fence slats.

What are you considering "doing" with the driveway. The house we've just sold had an aggregate driveway that was dirty. We could have spent all day pressure cleaning it, but we hired a chap who did it in about two hours, sprayed first with bleach solution and used a large polisher style cleaner. Came up a treat and cost $220. It is a long driveway like yours.

Your driveway looks like it might benefit from a good clean but nothing more would need to be done (judging from the photos).

If you were selling, the back yard would look better with some grass, but for renting, I would leave it.

 

[Tim86]

What are you considering "doing" with the driveway. The house we've just sold had an aggregate driveway that was dirty. We could have spent all day pressure cleaning it, but we hired a chap who did it in about two hours, sprayed first with bleach solution and used a large polisher style cleaner. Came up a treat and cost $220. It is a long driveway like yours.

Your driveway looks like it might benefit from a good clean but nothing more would need to be done (judging from the photos).

If you were selling, the back yard would look better with some grass, but for renting, I would leave it.

I was thinking about painting the driveway or do you think it just needs a clean? My brother has an industrial strength geni that would clean it quick. And the backyard goes another 800m2 behind that drive way in the picture. It's got lots of grass and fruit trees etc...

 

[Hysteria]

Just a good clean.

Paint will wear and look worse.

 

[Tim86]

Ok will do thanks

 

[wylie]

Just a good clean.

Paint will wear and look worse.

Agree with this. And even if your brother has an industrial strength pressure cleaner, it is no match for the 300mm x 300mm (approx) sized head on the one that was used.

I've karchered this driveway before and it took a day because the surface area of a normal karcher is small. I'd go the large head cleaner and get it done in two hours. $220 (might have been $240) was worth not having to spend all day doing it.

 

[DaveM]

Now it's kind of like a little flat. Still a bedroom in the house, but fully self contained. I rent the house out as share accommodation so get a premium for rooms with their own bath and kitchen.

Cool great idea! Does that give you any grief from council or insurers?

 

[Tim86]

Cool great idea! Does that give you any grief from council or insurers?

It's all done on the one tenancy agreement so no grief... yet

 

[Richard Feynman]

Nice work out the front. Massive improvement there.

+1 on the driveway comments though.

 

[Tim86]

I pressure washed the driveway as per the suggestions. I also painted all the green bits. I did lots of other work touching things up as well around the house. Hopefully it all helps with the final value that I get on wednesday. I also just got the new council valuation for the land which is $370 000 up from $350 000 last year. So I really can't see how the valuer can't give me a higher value than the previous value of $420 000, especially after all the work and the rising market... Anyway fingers crossed.


And here are the final pics.

 

[Mitch1]

street appeal has certainly improved (though cannot guess at the added value)
nice work and the driveway came up a treat. no point in spending where it isn't needed and power cleaning did the job.
added benefits inside should def help. good luck with valuation.

 

[Tim86]

So the valuation just came back in. We purchased the property for $370 000 in 2012, including stamp duty and improvements/renos we spent $30 000.

Total $400 000 cost.

It just got valued at $540 000!!!

I really didn't expect that. Our previous loan was based on an 80% lend with a value of $420 000. We can now borrow $96 000 extra with an 80% lend!!!

I'm pretty shocked! This is an amazing result.

Time to sink the money into my PPOR and then revalue that and get more equity and then spend some money on the development site I have.

So happy right now

 

[westminster]

Congrats!!

I'm no accountant but I'm not sure I understand your theory with putting that money into PPOR and then withdrawing for development. Can you please run the ideas by your accountant to make sure you do it the most effective way.

 

[Tim86]

Congrats!!

I'm no accountant but I'm not sure I understand your theory with putting that money into PPOR and then withdrawing for development. Can you please run the ideas by your accountant to make sure you do it the most effective way.

We are raising and building in under our house. Then renting out 4 rooms downstairs at $160 per room. So extra income = extra borrowing capacity. The work we are doing on the house is going to be done by mostly me. The house should be worth about $850 000 when I'm done. I'll sink about $200 000 into the project. The house has cost $430 000 so far. I can then revalue my ppor and use the extra funds to do another project I've got lined up. That other development should see me profit about $290 000. After the dust settles in 2 years I should have about $710 000 equity. But I'll never sell my PPOR, which is why cgt doesn't bother me in terms of partially renting the property.


But yeah should all work out well.