Morning guys and gals!! As some of you may know I recently got my hands on my first IP. It's an older style 2 bedroom unit in pascoe vale. It has all old style fittings, old carpet, retro paintjob. Technically needs new everything I'd say. However my question was do you think someone would rent it out as it is??! Or should I just renovate it into a nice clean modern apartment right away and then put it up for lease? What would the potential price difference be in terms of rent per week in pascoe vale. All comments and advice appreciated...
To renovate or not to renovate..
- Thread starter Elfi
- Start date
You need to ask yourself these Q's:
1. What kind of tenant will I attract with the property left in its present condition? Is that the kind of tenant I want?
2. If I spend say $10-15K to bring it up to something nice, will I get $30pw extra in rent?....and will the place be worth $30K more after doing so?
Check comparable sales and comparable rentals.
You need to speak to a couple of local PMs to get their views - they will be able to guide you
1. What kind of tenant will I attract with the property left in its present condition? Is that the kind of tenant I want?
2. If I spend say $10-15K to bring it up to something nice, will I get $30pw extra in rent?....and will the place be worth $30K more after doing so?
Check comparable sales and comparable rentals.
You need to speak to a couple of local PMs to get their views - they will be able to guide you
Do you have pictures?
As Propertunity said you need to work out whats the reno going to bring for you. Anything will rent at the certain price. If I do a reno I usually want a 40%pa on my money invested, and equity gain of double the capital.
Therefore spend $10k I want $4000pa more rent or $80pw and I want the property to be instantly worth $20k more for it to be worth my time/efforts.
As Propertunity said you need to work out whats the reno going to bring for you. Anything will rent at the certain price. If I do a reno I usually want a 40%pa on my money invested, and equity gain of double the capital.
Therefore spend $10k I want $4000pa more rent or $80pw and I want the property to be instantly worth $20k more for it to be worth my time/efforts.
![2008588610_3_FS[1].jpg](/data/attachments/5/5632-1f79e4704dd9040ae86036198873b9cb.jpg)
If you're cheap, paint the fronts white, change the knobs to something chrome, get a new benchtop, sink and taps and get a new steel upright oven.
What she said, but I would hardly bother with the painting, benchtop, sink and taps.
New knobs would make a huge difference.just go to Bunnings and buy some modern silver door handles/knobs.
in my rental, the kitchen had mission brown cupboards, i painted them white & put new handles on & it looks great ( okay, not so great as a brand new kitchen ) but pretty good for about $50 (i used paint left over from my own house, the handles were $20 something from Bunnings and I put new taps in too - can't remember the exact price but the taps were one of the cheaper ones from Bunnings - sometimes i think that work should just send my pay direct to Bunnings.....)
in my rental, the kitchen had mission brown cupboards, i painted them white & put new handles on & it looks great ( okay, not so great as a brand new kitchen ) but pretty good for about $50 (i used paint left over from my own house, the handles were $20 something from Bunnings and I put new taps in too - can't remember the exact price but the taps were one of the cheaper ones from Bunnings - sometimes i think that work should just send my pay direct to Bunnings.....)
