Opinions required on adding value to recent purchase (QLD)

[Dbz_Vic]

Hey everyone, i am thinking of doing some minor value/yield add to a lowset i have under contract http://www.realestate.com.au/property-house-qld-springwood-118026963 and would like some opinion on what people would or won't do. I personally am thinking of adding a front fence to give it a bit more privacy as its on a busy road, and maybe a new lick of paint and new flooring (carpet/floorboards). Kitchen and bathroom probably down the track as it still looks in good condition, or would yous target that first for better bang for buck? Also the carport at the front might need sprucing up or replacing down the road too along with a new driveway maybe. Roof restore and rendering the brick face also on agenda down the road, but really need some opinions on what people would do. This property is a long term hold, not flipping.

I also heard that labour costs are higher in QLD so my budget right now really depends on how much things cost and what value they reap. Opinions more than welcomed.

 

[LeoT]

Have a look at similar properties achieving a rental price you are aiming for and see if they have something you lack that might make a difference, Also asking agents in the area often can help give you a good idea of what to do and what not to do.

Well done on your new purchase mate!

 

[wylie]

If you have bought it as a rental (assume so) then I wouldn't touch it.

There are a lot of things I would tweak if I was going to live in it, but it looks fine "as is" for a rental. Have you asked local PM what they might suggest needs changing in order to get better rent?

I'd get the rent flowing and ponder on it for a couple of years (unless your PM says you'll get $xx extra if you do "whatever").

 

[Dbz_Vic]

Thanks LeoT and Wylie for quick responses. Similar properties in neighbouring suburb of Daisy Hill renting $380pw, with newer kitchens/bathrooms $400pw, with pool $400+pw. This property was rented for $360pw and selling agent did say in their opinion replacing the flooring will net $10-$15pw more rent. So probably $5000 ballpark depending if its carpets or floorboards? I think carpets are better for depreciation but floorboards look better but more maintenance. Leaning towards new carpets if they definitely need replacing.

 

[wylie]

If you do replace carpets, give Carpets on the Move a call. We've used them twice now, one for our own PPOR and we did three reasonably sized bedrooms for about $1400 laid on top quality underlay. We love our new carpet. We chose charcoal nylon with a grid pattern. Great for hiding stains I guess for an IP.

But, if you can get by without replacing, I'd do that.

 

[LeoT]

Thanks LeoT and Wylie for quick responses. Similar properties in neighbouring suburb of Daisy Hill renting $380pw, with newer kitchens/bathrooms $400pw, with pool $400+pw. This property was rented for $360pw and selling agent did say in their opinion replacing the flooring will net $10-$15pw more rent. So probably $5000 ballpark depending if its carpets or floorboards? I think carpets are better for depreciation but floorboards look better but more maintenance. Leaning towards new carpets if they definitely need replacing.

If your gonna replace flooring, go carpets over floor boards. Try to keep emotions out of all decisions. Do what's best for the investment.

 

[travelbug]

I'd paint the kitchen cupboards. Use a primer and paint with gloss. Put new handles (cheap in packs from Bunnings). It will make a world of difference for a small outlay.

Ours cost $30 for the primer (we had gloss) and $20 for the handles.

Use a tiny roller (from Bunnings) which gets an awesome finish.

 

[LeoT]

I'd paint the kitchen cupboards. Use a primer and paint with gloss. Put new handles (cheap in packs from Bunnings). It will make a world of difference for a small outlay.

Ours cost $30 for the primer (we had gloss) and $20 for the handles.

Use a tiny roller (from Bunnings) which gets an awesome finish.

Nice job travel Bug!

 

[arriety]

For a rental it looks in good condition. I agree with Wylie and only do the minimum. It looks fine for a rental, believe me and I don't think there is much in that area - you have to go to Logan to find more. So I'd test the market as is and just wait and see for a couple of months. You might end up having to replace something anyway - the aircon will blow up or something! But you might be able to claim that on insurance if (its motor related). I'd paint it if looks tired but it looks fine from the photos.

 

[Dbz_Vic]

Thanks everyone again for the advice. As suggested i might test the waters first to see what rent i can get, and then replace the flooring when there is definitely a need to.

arriety - that is fantastic and a great outcome! Thanks for sharing