Hi, I've recently bought a 2 b/r flat in inner SE of Melb for about $430K through a property buyer/company . The plan is for the same company to reno the place (budget about $45 and they will use the lot). All up the property is going to cost about $510K.
Its an early 80s place, wooden floor boards with bedrooms and living area in good condition paint wise. Bathroom and kitchen are original. Can be cleaned up obviously and presented ok/average but eventually will need to be renovated.
The reno plan is a full cosmetic. New kitchen and bathroom, painting wiring, A/C etc etc.
I'm not 100% convinced I'm going to get value for the reno but settlement is early 2013 and there is really no time to be messing about organising someone else independent and I can't do it myself (not practical and no time). They also plan to manage the property when completed. The conflict of interest is becoming obvious to me.
While I am satisfied that the reno will look great and will be easy to tenant, the question is:
Would I be better to not proceed with the reno, get in there and give it a quick scrub up and get another agent on to it to lease it out, renting for probably only $320 - $350 instead of the $400 odd(?) I would be looking at after the reno. Then come back at a later date to reno (year or 2) after more planning and quotes?
I am due to sign on for the reno shortly. At this stage I have a total cost but not even a cost breakdown of any sort. I also want to speak with the property manager before signing on to the reno because its not just a given that I will be handing over to them, I want to know cost in advance so i can compare.
Apologies if this is long winded but hopefully someone understands the situation. I have been deliberatly vague with some details obviously for a number of reasons.
Any opinions would be appreciated.
Its an early 80s place, wooden floor boards with bedrooms and living area in good condition paint wise. Bathroom and kitchen are original. Can be cleaned up obviously and presented ok/average but eventually will need to be renovated.
The reno plan is a full cosmetic. New kitchen and bathroom, painting wiring, A/C etc etc.
I'm not 100% convinced I'm going to get value for the reno but settlement is early 2013 and there is really no time to be messing about organising someone else independent and I can't do it myself (not practical and no time). They also plan to manage the property when completed. The conflict of interest is becoming obvious to me.
While I am satisfied that the reno will look great and will be easy to tenant, the question is:
Would I be better to not proceed with the reno, get in there and give it a quick scrub up and get another agent on to it to lease it out, renting for probably only $320 - $350 instead of the $400 odd(?) I would be looking at after the reno. Then come back at a later date to reno (year or 2) after more planning and quotes?
I am due to sign on for the reno shortly. At this stage I have a total cost but not even a cost breakdown of any sort. I also want to speak with the property manager before signing on to the reno because its not just a given that I will be handing over to them, I want to know cost in advance so i can compare.
Apologies if this is long winded but hopefully someone understands the situation. I have been deliberatly vague with some details obviously for a number of reasons.
Any opinions would be appreciated.