Renovating PPOR without over capitalising

Hi guys,

Just thought I'd open up a discussion on thoughts and tips on renovating your PPOR without over capitalising.

I have been in my PPOR for 14 years and have no mortgage. The house is a 4 bdrm, 2 bth home with games/family/formal areas. It sits on the high side of the road at the end of a cul-de-sac overlooking the national park in a suburb with excellent infrastructure including public transport, university, tafe, police academy, private school, restaurants, work opportunities, all within walking distance or at most a 2 min drive by car.

The house is tired, needs a lift.....a little more space as well, and we have 2 teenage boys (and all their mates are here regularly too).

Ideally my husband and I would like to go second story but I am concerned that we could be over capitalising.

Thoughts would be appreciated???!!

cheers

sq
 
When I read the heading I thought that it would be hard to overcapitalise in WA or QLD.

And you are in WA. :) Miners make good money and will no longer accept living like pigs. And for the hundredth time I'll say: "We are in a mining BOOM!"
 
Hi Ricardo and Sunfish,

Yes, I have thought of moving but.......still not convinced that it would be the way to go....until I way up what the reno's would cost as opposed to selling and buying again.

Interesting point Sunfish with regards to people making money in the Mining BOOM and not being satisfied with just living in normal homes - you are quite correct, I have noticed that there is a different generation of people emerging from this boom. The amount of money splashed on TOYS in WA is amazing!!!!

thanks for comments

sq
 
To take this a little further: I'm living in an ordinary home I bought nearly 40 yrs ago and to be frank it is a little run-down. I have never wanted to spend too much on it because, as a development block, I was always going to be offered big money for it next year.

Well I'm still here and the big reno needed is now beyond me physically and tradesmen are beyond me financially. They are literally naming their own price now.

So if the sums stack up, do it! If the result is pleasing, someone will buy it after you have enjoyed the amenity. Spend money (wisely) on yourself and family. How could you possibly do so better?
 
id move in a flash.
there will 100% without doubt be a much better bigger nicer house around the corner, at a reasonable price. always is.
but then again i dont have emotional attachment (ive been told that before :)

that aside...maybe funk the daylights out of the backyard, always a good start. massive 'space saver'. all of a sudden youre eating and hanging out 'outside' in a beautiful setting, as opposed a small living room.
open up the kitchen, techno it up, stainless it up, all the fruit.
fix the bathrooms.
render and paint it a new fancy colour thats all the rage. that'd do it eh?

i doubt that adding a second story in that kind of suburb (yokine, mt lawley, maylands???...anywhere half decent to be honest) would be over capitalising. quite the opposite, wouldnt be a concern at all in my mind.
 
I would be getting in a trusted local real estate agent and asking the question of them. They will know what your house is worth now, what it is worth if you paint and pretty it up for sale and what you would get with a second story added. You should be able to get a ball park figure on putting on a second story from a company that specialises in that type of addition.

Then, just do the sums. If you like the area, think of the money you would spend on advertising, agent commission and stamp duty and that is a lot of money to put towards your new second storey.

Sounds like you want to stay but need more room, so put the sale/purchase costs towards the second storey, I reckon.

Wylie
 
I would be getting in a trusted local real estate agent and asking the question of them. They will know what your house is worth now, what it is worth if you paint and pretty it up for sale and what you would get with a second story added. You should be able to get a ball park figure on putting on a second story from a company that specialises in that type of addition.

Then, just do the sums. If you like the area, think of the money you would spend on advertising, agent commission and stamp duty and that is a lot of money to put towards your new second storey.

Sounds like you want to stay but need more room, so put the sale/purchase costs towards the second storey, I reckon.

Wylie

That's the smartest advice yet me think's, as long as the $$$ stack up.

Dave
 
Hey Ricardo.........

Try Joondalup!!:eek: (unfortunately not as close to CBD as Yokine, Mt Lawley etc)....now what are your thoughts?

cheers

sq
 
Hahaha hi suzieq, I knew it was Joondalup ;)

Wylie has it absolutely right, if you add a storey it could cost more than buying something else that already has the right layout/ size, so get some agents to give you their appraisals of your property value now. Then go and look at what it is you would like, and see how much more it would cost to do the move.

If you love the position of your current home (and your community) you might have other reasons that make it worth while to stay put, so factor that in to your decision as well.

We just went through a similar thought process to you and we looked around at what we could buy, but we decided it was definately worth our while to do the reno work to our own place. By building up we get great ocean views so thats a bonus for us.

One of the agents told us that he finds that people often end up putting their house on the market after they complete their reno work anyway, so thats worth thinking about too :(
 
Hey Tizzy,

Was your reno in Joondalup or close by??? Ocean Reef perhaps - Ocean Views - we may get as well but a bit distant!!

I think Joondalup has still got a lot of legs...good write up in this month's API mag and with the freeway extension going on, business park expanding, shopping centre expanding. My hubby and I went down to Kulcha last night for dinner at 6.30pm and got the last table for 2 avail. The place was bursting at the seams!!!

sq:)
 
I think you are right about Joondalup, a great investment and lots of quality builds around too. I haven't seen the API mag yet so I'll check it out.

It's quite something watching that freeway extension being built. I keep trying to encourage my kids to count the cranes arounds town and note the building going on because I haven't seen anything like this since the 70's.
 
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