Renovating a PPOR

Discussion in 'Adding Value' started by Antowen, 31st May, 2007.

  1. Antowen

    Antowen Member

    Joined:
    23rd May, 2007
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    Victoria
    Hi

    Does anyone have any guidelines or suggestions on how to determine if you are over capitalising a house through renovation. Is there value of house versus cost to renovate equation?

    Thanks
     
  2. wylie

    wylie Member

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    I would get a local real estate agent to look at your PPOR "as is" and tell him/her what you are planning on doing and what it will cost. He should be able to tell you whether you are overcapitalising or not.

    Armed with this knowledge you either go ahead because you want to stay there long enough and it is a lifestyle choice, or decide you will move and buy elsewhere to get what you want.

    When we renovated six or so years ago, if we had sold straight after, we would not have made anything. We still did the renovation because we wanted to stay here for a while, but if we had done it purely as a money making exercise, it would have failed.

    Wylie
     
  3. Antowen

    Antowen Member

    Joined:
    23rd May, 2007
    Messages:
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    Location:
    Victoria
    Wylie

    Thanks for your comments. I have been talking with the local realestate agents and I think the decision will based on the amount of time we are going to stay living at our address.

    Regards
    Anthony