Hi All,
I would like to hear some different points of view about the Reno question.
I have just bought a Ground floor 2 Bed 1 bath apartment in Neutral Bay, $559K.
Advised that it could rent for about $540 to $550 pw as is.
Two others in the same building that have been fully renovated, (Paint, Carpet, Kitchen and Bathroom) on upper levels (1 & 2) advertised for rent for $580 and $585 pw. Across the street 1st floor renovated 2 Bed 1 bath apartment advertised for rent for $575 pw.
Option 1: Do nothing - accept a rent of $540 pw. I may be able to find a tenant faster because of the cheaper rent.
Option 2: Just light reno - Paint ($2K) and flooring ($3K) (carpet or floating floorboards). Probably guarantee a rent of $550 pw.
Option 3: Full Reno - Paint ($2K), flooring ($3K), Bathroom ($6K), Kitchen ($9K). May rent for $570 - $580 pw.
Option 2 would see me spend $5K to get an extra $10 pw.
Option 3 would see me spend $20K to get an extra $40 pw.
I understand doing something like this to increase the value of the home, for when you want to refinance and buy another IP, but why would I do it now?
Would I be better off, leaving the money in an offset account to keep the repayments lower?
All constructive thoughts appreciated.
Thanks.
I would like to hear some different points of view about the Reno question.
I have just bought a Ground floor 2 Bed 1 bath apartment in Neutral Bay, $559K.
Advised that it could rent for about $540 to $550 pw as is.
Two others in the same building that have been fully renovated, (Paint, Carpet, Kitchen and Bathroom) on upper levels (1 & 2) advertised for rent for $580 and $585 pw. Across the street 1st floor renovated 2 Bed 1 bath apartment advertised for rent for $575 pw.
Option 1: Do nothing - accept a rent of $540 pw. I may be able to find a tenant faster because of the cheaper rent.
Option 2: Just light reno - Paint ($2K) and flooring ($3K) (carpet or floating floorboards). Probably guarantee a rent of $550 pw.
Option 3: Full Reno - Paint ($2K), flooring ($3K), Bathroom ($6K), Kitchen ($9K). May rent for $570 - $580 pw.
Option 2 would see me spend $5K to get an extra $10 pw.
Option 3 would see me spend $20K to get an extra $40 pw.
I understand doing something like this to increase the value of the home, for when you want to refinance and buy another IP, but why would I do it now?
Would I be better off, leaving the money in an offset account to keep the repayments lower?
All constructive thoughts appreciated.
Thanks.