Hi
I have invested in a couple properties over last decade or so, but generally have had no need to make renovations to a property until now so am inexperienced in this area.
In around 2001 I bought a 2BR, single front, brick, semi detached house (with a dodgy extension) in Elwood (for those that don't know, a beach suburb around 5 km from Melb CBD). This is also the area I live in.
Since then the property has deteriorated. This is primarily due to part of Elwood historically being a swamp area, and therefore quite 'silty' and this silt having substantial ground movement that causes walls to crack (particularly given the volatility of rainfall patterns we've experienced).
Anyway the tenants have recently moved out and with the house in the condition it is in, I do not believe I can get a decent rate of rent.
Rather than a simple temporary patch up, I am considering a significant renovation. My motivations are to increase the rate of rent I achieve but I would also like the renovations to add significant value to the property (ie do not want to overcapitalise for the return likely on eventual sale - if ever).
I think the foundations definitely need to be fixed to avoid future maintenance expenses (recracking, gaps in skitring and floor, etc). This I expect will be quite a substantial expense but necessary.
I would however also like to consider the following:
- add a third bedroom (currently both bedrooms are at front of house). The third bedroom would be adjacent (behind) one of the existing bedrooms (the other bedroom has the bathroom adjacent (behind)
- renovate the kitchen as well as fix the exterior wall (due to slippage part of the kitched has dipped, the window does not even close due to this)
- knock down the interior wall that for some reason separates the small extension at the back from the dining/living area (its suppose to be a dining area I think) and create a open plan living area by doing so (incl redoing rear wall with french doors etc)...this would also make up for the living area space lost from addition of third bedroom. The big issue here is that the extension has a sloping roof (from the aforementioned interior roof). I think this will ahve to be removed and the roof made parallel with the floor (ie like the rest of the house)
- the kitchen is also closed off from the living area except for an opening. I would consider removing part of the interior wall that separated the kitchen so that it is open to the living/dining area
My question is what your thoughts are here in terms of value added in terms of rent, and future sale value. Rent would definitely be increased substantially I feel but am not sure whether the costs will outweigh the value added at eventual sale.
I have an excel spreadsheet with rough floorplan pics and brief notes that I would attach, but unfortunately it exceeds the file limit for attaching excel files (due to the pics).
Also, can anyone recommend any good builders I could get a quote for the above work (or part of).
I have invested in a couple properties over last decade or so, but generally have had no need to make renovations to a property until now so am inexperienced in this area.
In around 2001 I bought a 2BR, single front, brick, semi detached house (with a dodgy extension) in Elwood (for those that don't know, a beach suburb around 5 km from Melb CBD). This is also the area I live in.
Since then the property has deteriorated. This is primarily due to part of Elwood historically being a swamp area, and therefore quite 'silty' and this silt having substantial ground movement that causes walls to crack (particularly given the volatility of rainfall patterns we've experienced).
Anyway the tenants have recently moved out and with the house in the condition it is in, I do not believe I can get a decent rate of rent.
Rather than a simple temporary patch up, I am considering a significant renovation. My motivations are to increase the rate of rent I achieve but I would also like the renovations to add significant value to the property (ie do not want to overcapitalise for the return likely on eventual sale - if ever).
I think the foundations definitely need to be fixed to avoid future maintenance expenses (recracking, gaps in skitring and floor, etc). This I expect will be quite a substantial expense but necessary.
I would however also like to consider the following:
- add a third bedroom (currently both bedrooms are at front of house). The third bedroom would be adjacent (behind) one of the existing bedrooms (the other bedroom has the bathroom adjacent (behind)
- renovate the kitchen as well as fix the exterior wall (due to slippage part of the kitched has dipped, the window does not even close due to this)
- knock down the interior wall that for some reason separates the small extension at the back from the dining/living area (its suppose to be a dining area I think) and create a open plan living area by doing so (incl redoing rear wall with french doors etc)...this would also make up for the living area space lost from addition of third bedroom. The big issue here is that the extension has a sloping roof (from the aforementioned interior roof). I think this will ahve to be removed and the roof made parallel with the floor (ie like the rest of the house)
- the kitchen is also closed off from the living area except for an opening. I would consider removing part of the interior wall that separated the kitchen so that it is open to the living/dining area
My question is what your thoughts are here in terms of value added in terms of rent, and future sale value. Rent would definitely be increased substantially I feel but am not sure whether the costs will outweigh the value added at eventual sale.
I have an excel spreadsheet with rough floorplan pics and brief notes that I would attach, but unfortunately it exceeds the file limit for attaching excel files (due to the pics).
Also, can anyone recommend any good builders I could get a quote for the above work (or part of).