New Balustrades - Strata block Sydney

I am in a block of 15 units on Northern Beaches in Sydney. The block is currently in the process of removing old brick balustrades and being replaced with new glass and aluminium balustrades. Cost is $135K including contingency for 15 units.

My question is, can I expect the value of the unit to increase by the 9K I am about to spend or will the value stay about the same? Or, would the unit increase by a percentage of that 9K?

Current value of unit is $465K as is.
 
Unless there is a major impact on the visual presentation of the block my guess would be that the value will stay much the same.

Value is really all about comparables and convincing someone that you have a point of difference that justifies the price.

What is actually included in the $9k price tag?

Cheers
 
Thanks for getting back so quickly - that is what I thought! The block will look alot better and more modern. Current brick / breeze block balustrades are stained and under 1m high (don't comply with building reg).

Included in quote is:

 Install scaffold as required.
 Remove and dispose of all existing brick railings. (Note: balcony doors will need to be locked from the outside to prevent owners/tenants using balconies whilst work is carried out).
 Remove existing tiles and tile bed to all balconies.
 Install new brick hobs to slab edges. New hobs to have 38 mm PVC spitter pipes installed.
 Inspect and carry out repairs to any spalling concrete (PC - $8,400.00 plus GST – for an estimated 200 litres @ $42.00 per litre).
 Render new hobs to match existing.
 Supply and install new tile bed to falls.
 Apply a polyurethane waterproof membrane to all balconies.
 Supply and lay new tiles @ $54.00/m2.
 Paint all new render and slab edges.
 Supply and install a new white powder coated aluminium balustrade with post and top rail only. New post to be core drilled through new brick hobs and into concrete slab.
 Remove and reinstate three (3) air conditioners.
 Remove all rubbish from site.
 
Will the glass balustrade improve your views? - will it improve street appeal?

Both will have a positive effect on unit price.


The list of works indicate to me that the works are required - repairs. So I would not be factoring the $9,000 it will cost you in the improved value to the unit.

You need to consider the cost it would be to replace existing with same then compare with glass and aluminium - cost difference may be as little as $1000 per unit.

Also being close to salt water will result in lots of time in cleaning - why did the owners corporation decide on glass over other materials?
 
I have a unit in a block of 60 and the old steel railings needed painting every 5 years and looked very dated. We went for the new aluminium and glass ones and it made the front of the units look so much better and they immediatly started selling for much more than the cost of putting them in.

The way we got it through the AGM was to show that in the long run it was actually cheaper to get the new railings as we were spending so much in maintenance.

You won't know of the effect on prices until you get a few units changing hands, but it was only a positive experience for us.
 
The new balustrades will not improve the view but will certainly improve street appeal.

We did factor in cleaning etc and went for a frosted glass (does not show dirt up as easily and also for privacy).

Attril - I was actually speaking with a local real estate agent and he is specifically going to watch prices in our block to see if we can get at least a percentage back, if not the full cost, in increased value.

Just to add, We just had one sell - middle floor, fully reno for $452, 500, less $9k for cost of balconies. I overheard the woman who bought the unit in our recent EGM and she said to someone "$460K but 9k less cause of the balconies".
 
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If you are friendly with a RE agent who has access to RP data and is familiar with the area, how about trying to get them to find another block that has had a similar spruce up and see what the sales data says about the values before and after?
 
You will probably find that your old brick balustrades are no longer compliant to safety or building standards, hence the upgrade to more modern balustrading is essential.

It may not affect values, but should be one less "thing to be done" that buyers may be concerned about.
Marg
 
Coincidently, we just had a client buy a unit in what looks like a 60s building - great looking building. The balcony railings definitely don't conform - a kid could get up and over them in seconds. So what's his legal position if something terribly happens to a tenant's child?
Scott
 
What happens if you own one of the units as PPOR and you can't afford to pay $9000?

Are the strata fees just bumped up?
Or would this money have been already saved in a sinking fund?
 
An individual owner's inability to pay the $9,000 won't stop it going ahead, but that owner will be pursued by the body corp for the money (just as they would for unpaid levys).
 
Won't save much but I would have thought that the aircon moves should be at the cost of the individuals affected.

Reason being that they are personal property as each unit does not have one.

Cheers

PS we are doing a similar job to 18 balconies along with a whole reno on each unit. I am only budgeting $20k all up for the balconies
 
Coincidently, we just had a client buy a unit in what looks like a 60s building - great looking building. The balcony railings definitely don't conform - a kid could get up and over them in seconds. So what's his legal position if something terribly happens to a tenant's child?
Scott

Hope he's got good insurance.:eek:

Duty of care?? If he knows it's a hazard and does nothing about it. That's asking for trouble in my opinion. I know in the workplace if you know a hazard is present and you do nothing about it you can be liable (that's individuals too).

HandyAndy. The thing that hits the price up is not the physical work or even the materials. To hire scaffolding costs a bomb.
 
Also looking at replacing balustrades

Hi All

This is my very first post, so may not be quite right.

We have an apartment block of 12, with 4 of them having large rooftop balcony decks. We are looking at getting something similar to what you have recently done with your block:
- ripping up the tiles;
- fixing the fall of the balcony if necessary;
- replacing the brick balustrade with a glass and steel balustrade;
- installation of a hob and new spitters; and
- laying a waterproof membrane and relaying new tiles.

Who did you use? Who would you recommend to do the work? We have been quoted $26,000 for just one balcony (2.5mx8m) which I reckon is highway robbery.

Cheers
 
Strata block - Sydney

Our Strata block of 30 units is finding itself in a similar situation with rendered brick balustrades and compliance requirements (height and only one single brick thickness - both which we are told are non-compliant, though we were going to replace handrails to new height anyway) and flaky,delaminating paint (undersanble since the balustrades have not been painted in 20 years)due to salt retention, so we are told etc. We had just been expecting to give the rendered brick balconies a good coating paint system, but all these kinds of issues have now come up including the question of compliance esp re the single skin brick. I feel this question of 'compliance' is pushing a lot of owners corporation to the brink and wonder if some parts of the compliance are strictly necessary when older building are concerned? Our total budget will be eaten up if we go this way. I was wondering how you are going in your block with your project, and how you feel about it all now? And any views of others in this regard?


I am in a block of 15 units on Northern Beaches in Sydney. The block is currently in the process of removing old brick balustrades and being replaced with new glass and aluminium balustrades. Cost is $135K including contingency for 15 units.

My question is, can I expect the value of the unit to increase by the 9K I am about to spend or will the value stay about the same? Or, would the unit increase by a percentage of that 9K?

Current value of unit is $465K as is.
 
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