Still don't think pool adds value, it may just be attractive to those who desire a pool.
Also, interesting that probably most will not get a pool inspection on purchase, we made this mistake cost us, lesson learnt, will never buy IP with pool.
Top 10 property valuation myths
- Thread starter Peter_Tersteeg
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Still don't think pool adds value, it may just be attractive to those who desire a pool.
Also, interesting that probably most will not get a pool inspection on purchase, we made this mistake cost us, lesson learnt, will never buy IP with pool.
I have had 2 PPOR with pools.On selling both received mixed responses.one sold quickly as the area it was in it was sort of expected with the style and price of home,the second one took a lot longer to sell,3 years apart.This one needed updating,and turned out to be a liability.
As for a pool with a IP,i would steer well clear of them.Just something else to maintain maintenance wise.
Still don't think pool adds value, it may just be attractive to those who desire a pool.
Depends on the area. I know someone in the process of selling right now without a pool in an area where they are the norm here in Brisbane. They called 4 agents for appraisal meetings and for 3 of the 4 agents, one of the first questions they asked about the house was about the quality of the pool. Not whether they had one or not.
The advice of these agents was that they have a vastly diminished pool of buyers. Does a pool add value in that area? I reckon so, and in the experience of these agents it adds at least the cost of construction and if the landscaping is good, it actually adds value.
Wow, that surprises me, I am from Perth where we experience 40deg in summer Pool very attractive, but will not add value just a bonus. So different in your neck of the woods.
Perhaps, blue chip market $1m + would be expected.
Cheers MTR
We had the old pool that required either renovating or fillling in. All REAs in the area recommended renovating. According to them buyers in the area generally expect that the house has a pool and are ready to pay more or demands the discount that they have afford to put one in. But again + 1m property relatively far from the beach surbubs.
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A new setup will require around an hour a month, if that. Even the older, most high maintenance (non salt water, cartridge filter) ones are less work than mowing the lawn. IMO people view them as high maintenance because they don't use them.
For an IP I try to avoid pools. Even dropping in a water sample to the pool shop while at the shops once a month and spending 5 mins adding some chems is too much work for the average tenant. That means you have to pay for pool maintenance and with every call out fee that becomes expensive.
What happened to DE filters?
Air conditioning works better than a pool, and you don't have to lather up in 30plus to kick back and relax
Having had an o/o in Bris with a pool, never do it again, cheaper and easier to take the kids to the council pools and enjoy it and leave. And most of the time its the neighbor kids without pools who want to use it, and hassle your kids to go for a swim. Sucks as their parents stay at home in their a/c lounge room - or maybe that was just the sucky Bris suburb.
Having had an o/o in Bris with a pool, never do it again, cheaper and easier to take the kids to the council pools and enjoy it and leave. And most of the time its the neighbor kids without pools who want to use it, and hassle your kids to go for a swim. Sucks as their parents stay at home in their a/c lounge room - or maybe that was just the sucky Bris suburb.
Hi folks,
Whilst I can't contribute to the dialogue about the myths of valuations and specific scenarios like environment/water views/floor space and so on; I can make a recommendation to always pay for 3rd party valuer's report.
Lender internal vals have left me a bit cold in my portfolio experience, and there are so many positives to using a 3rd party one. I know you have to pay a little bit for them, but for an IP they really are worth it, especially considering they show achievable unfurnished rental rates too.
Whilst I can't contribute to the dialogue about the myths of valuations and specific scenarios like environment/water views/floor space and so on; I can make a recommendation to always pay for 3rd party valuer's report.
Lender internal vals have left me a bit cold in my portfolio experience, and there are so many positives to using a 3rd party one. I know you have to pay a little bit for them, but for an IP they really are worth it, especially considering they show achievable unfurnished rental rates too.
But lenders' valuers are the ones who dictate how much equity you are getting....so what's the point of a 3rd party one you can't rely on?
Heres something i'm curious about. Quite a few have mentioned they've supplied comparable sales documentation to the valuer to help convince him of their figures. But how do they actually do that? I remember when I had my 1st place refinanced I had information to provide and told the person at the bank this and they told me to get lost. I also didnt know if/when the valuer was attending the property in order to meet him there.
And even if they did have documentation, valuers have access to data anyway so would they even consider what you show them? It'd be simple to print out 5 properties that have sold for 400k in a 300k suburb and present such a limited sample size as fact which I assume the valuer would discard unless they couldn't be stuffed doing the job?
And even if they did have documentation, valuers have access to data anyway so would they even consider what you show them? It'd be simple to print out 5 properties that have sold for 400k in a 300k suburb and present such a limited sample size as fact which I assume the valuer would discard unless they couldn't be stuffed doing the job?
Our first buy was easy - we loved the house, it met all our requirements, was below our budget and is our PPOR/'forever' home. Now that we are looking to buying a second property (as a long term investment) I'm plagued with doubts.
Just a couple of questions for the experts here
How do you assign a value for good views (specifically overlooking a reserve) all other things being equal?
What is the ideal land to price ratio in the inner eastern suburbs of Melbourne? I have seen a property here that got sold recently (land plus small 2 bed, 2 bath house in good condition), 690m2 at $1,667 per m2. However, several well renovated 3-4 bed properties on the same road have sold for between $2000 and $2500 per m2 (One 5 bed 4 bath Mcmansion on a 620m2 sold for $ 3173 a m2 in May 2010...ouch!).
How do you assign a value for a building (well renovated, standard 4 bed 2 bath modern house) when buying?
Appreciate your inputs. Thanks.
always bear in mind that the market is stupid and uninformed. a few years back I sold in an area that was a combination of 220sqm and 330sqm blocks. the market could not distinguish between the 2 different sizes and essentially they all sell for the same price.... my only conclusion was that buyers thought if you don't have a usable outdoor area then it doesn't matter???
Ice skating between Anzac Day and Xmas ( a bit like Melb).
LOL!
You would not believe the amount of folk we get in the workshop who own "The Joneses" cars...
and whine about the cost of the servicing and tyres etc.
No one brave enough to tackle my question above?
It can work - certainly better to show a valuer the comparable sales prior to them doing the report as people don't change their minds.
I'll have a go...
My mother used to sell real estate. She often was called by valuers looking for details of comparable sales. She (and our loan broker) suggested to us that we provide the valuer with some comparables when it came time for a revaluation on our own home after a major renovation, when we needed the value to be high enough to buy another IP.
I did that, provided valuations to the valuer, which he took with good grace. He and I both knew that he would be calling the local agents to find his own comparables anyway and he was happy to have me do some of his homework. Another valuer may have not wanted to use my comparables.
More recently, I provided comparables for a valuation we needed. The most obvious one was the house right next door, which was important to prove that values had dropped. The valuer used some of the ones I provided, and completely ignored the one right next door, same land size, similar size house etc. Riddle me that???
