Renovation v Detonation

Discussion in 'Adding Value' started by John Kimble, 17th Feb, 2014.

  1. John Kimble

    John Kimble Member

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    Hi Team,

    Looking for some guidance here! Long term listener...

    We have a 1880's Victorian Double Fronted Weatherboard in Hawthorn East, Vic that is our PPOR. It is in liveble but very outdated condition. We bought this place last year and it is likely to be a long term family home.

    We made some initial internal cosmetic changes - plaster, paint, lighting, flooring and a couple of nessecities like electrical and roof repairs to make the house liveable before moving in mid last year.

    Whilst the front and roof (slate tiles) are distinctly Victorian, the previous owners (who had the house for 55 years) pulled out all lot of the original features internally - madness I know.

    We are now discussing long terms plans and am tring to get our heads around what would be the best course of action; Renovate or Detonate (and build brand new).

    Renovate
    Pros: Keep the Victorian facade / roof line
    In keeping with the area
    Council recognise existing footprint - which is slightly towards the front of the block than current planning would allow.

    Cons: Need to factor in cost to replace all original features missing; ceiling roses, fireplaces.
    Would need retumping, rewiring, roof work.
    Could be more costly than a clean site.

    Detonate
    Pros: No heritage overlay so possible to do so.
    Building likely to be quicker
    Potentially get more for our money

    Cons: Loose the appeal of the existing facade
    It would be subject to tighter council planning regulations

    I'm interested in your thoughts as to best course of action.

    JK.
     
  2. Brady

    Brady Big 4 Banker

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    Which ever delivers the best dollars net.

    What have local agents said each would sell for?
     
  3. John Kimble

    John Kimble Member

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    Thanks Brady,

    Current valuation is around $1.2m, with a brand new home or completly renovated existing home valuation is probably likely to be around $1.6 - $1.8m.

    I think people do love period homes that have been renovated to be a seamless blend of old and new.

    Still keen to hear from someone who may have done something similar before?

    JK
     
  4. wylie

    wylie Member

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    I think you definitely need some agents to come and see what is there, and tell you which way to go. Keeping the facade and front of the house that would then open up into something modern could be great, or agents might say it is not something that local buyers like.
     
  5. Brady

    Brady Big 4 Banker

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    I would find some comparable sales, an agent can help with this. Also ask them which was more in demand... my guess is the original house renovated.

    Then look at the costs to do both.

    Once you know both the costs to complete each and the end values should be a pretty easy decision I would think.
     
  6. Tonibell

    Tonibell Member

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    Hi John,

    We have done a significant restoration for PPOR previously and are going through a similar decision for our current place.

    In both cases we were dealing with double brick Californian Bungalows and we really like the features from that period.

    As long as you are sensible about it then restoring the current place should be significantly cheaper than rebuilding - unless you are looking to significantly increase the footprint

    he decision is not just about the financial outcomes if you are living there long term.
     
  7. jackbak

    jackbak Member

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    As I financial decision (and emotional) i would say you have to keep the Victorian, a house like that in that location will boom. Their aren't too many properties form the 19th century left out there and there's only going to be fewer and fewer, which will in turn increase demand.

    Personally, I would only ever buy a period home as a PPOR or an investment, and I'm happy to pay a premium for it.
     
  8. impala67

    impala67 Member

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    Difficult decision, hard one to call since originality has been lost with previous owners. Sad to see these sort of properties lost to progress.
     
  9. Aaron_C

    Aaron_C Finance Broker

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    I live in a period home in a leafy area like that and I think it would be a real shame to totally destroy it. However - given that you do not have a Heritage Overlay in the area means that perhaps a Victorian house in that area doesn't really fit in with the area as most of the original houses are probably gone.
     
  10. neeko

    neeko Member

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    I say keep it, not many of them around and people pay big bucks for that stuff, remember if its old people like it. Whether it be a 50's weatherboard to art deco and 1890's federation, they all are excellently built homes all hardwood frame and will stand the test of time. The craftsman ship is something you dont see anymore.
     
  11. Melbournian

    Melbournian Member

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    I don't think you would be able to demolish it as it could be protected, eventhough the council says no - there are other bodies that could oppose it.

    best way is to either do an extension or add another level for value.

    but yeah just keep it.
     
  12. PropertyExtreme

    PropertyExtreme Member

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    Extension or addition

    I tend to agree with some of the other posts, it could be a great property to add size on top or out the back whilst keeping the original features of the front of the house. If you are planning to stay in this house then the decision is entirely emotional unless you'd like to use the equity.

    Go with what you truly want from the house!
     
  13. Tim86

    Tim86 Member

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    I would keep it and just put some features back into it. The period features really aren't that costly. Plaster ceiling roses aren't expensive. Even ornate plaster cornices aren't all that pricey. Throw in a nice fireplace for $700 from recollections, restore the old floorboards and you're well on your way. Keep an eye out on gumtree for some nice old stuff as well. I'm currently in the same predicament, an old character cottage that had all the vj's sheeted over with ply wood, carpet over the nice timber floor, etc... really ruined the whole thing. I've been slowly putting character features back into it. Pic attached of before and after for lounge room.
     

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  14. Buzz

    Buzz Member

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