I've been looking quite a lot at renovation costs, including attempting to benchmark what you 'should' be spending on various aspects of the renovation.
This has led me to such numbers as 2% house value on the kitchen & 1.5% on the bathroom. Now here's my connundrum, probably best demonstrated by an example based on 2 markets I know reasonably well.
House 1: Frenchs Forest (Sydney), bidding from $1.1M http://www.domain.com.au/property/for-sale/house/nsw/frenchs-forest/?adid=2011817999&sp=6
House 2: Adamstown Heights (Newcastle), sold for $620K recently http://www.domain.com.au/property/sold/house/nsw/adamstown-heights/?adid=2011191507&sp=4
I've chosen these 2 as they're pretty similar houses, in areas with a similar demographic & likely to have similar expectations re finishes. So theoretically if I was going to renovate the Adamstown Heights house I would have $12K but in Frenchs Forest about $22K. As you can see, doubtless the Adamstown Heights house is going to end up with a crappier kitchen, not necessarily what the market wants.
Thoughts?
This has led me to such numbers as 2% house value on the kitchen & 1.5% on the bathroom. Now here's my connundrum, probably best demonstrated by an example based on 2 markets I know reasonably well.
House 1: Frenchs Forest (Sydney), bidding from $1.1M http://www.domain.com.au/property/for-sale/house/nsw/frenchs-forest/?adid=2011817999&sp=6
House 2: Adamstown Heights (Newcastle), sold for $620K recently http://www.domain.com.au/property/sold/house/nsw/adamstown-heights/?adid=2011191507&sp=4
I've chosen these 2 as they're pretty similar houses, in areas with a similar demographic & likely to have similar expectations re finishes. So theoretically if I was going to renovate the Adamstown Heights house I would have $12K but in Frenchs Forest about $22K. As you can see, doubtless the Adamstown Heights house is going to end up with a crappier kitchen, not necessarily what the market wants.
Thoughts?