What adds the most value?
- Thread starter Rodney
- Start date
For me a good kitchen and bathroom are the most important, and from then onwards it depends very much on location, style etc. But everyone likes a nice kitchen and bathroom.
Next on my list would be somewhere to sit and have a meal or a cuppa outdoors, whether that is a deck or a covered paved area.
Next on my list would be somewhere to sit and have a meal or a cuppa outdoors, whether that is a deck or a covered paved area.
Depends what is wrong with the house that *isn't* adding value. For the house we bought last year, it got all of the above except bathroom, roof, driveway, paving - cost $20k and added $100k value. The bathroom, while butt ugly, is functional, but I can't redo it because the roof above it leaks like a sieve.
When we are less financially challenged I am going to grovel to the council so they put in a driveway for me (I have no idea if this is free or if it costs), will redo the bulk of the bathroom, reroof, and gravel not pave. Which will probably cost $10k at least and won't add more than about $5k value, really.
Carport? Not sure. Might be nice to have, but maybe half the houses around here have one. A shed on the other hand is treated by the local agent as a massive, MASSIVE value add so as much as I don't care about sheds, a shed is actually a better value add than a bathroom here just because of that one agent.
I've done all of the above with my last house and for every dollar I spent on renovations it added about 80-90c value to the house.
in our experience
Bathrooms and Kitchens are the two big ticket items that tend to give you bang for buck, regardless of where you are.
Paint and lighting are two small ticket items that give you good bang for buck, anywhere in Australia.
Then as Rumpled has mentioned-
Outdoor areas open deck with roof in warmer climates, and same in cooler climates but with added cafe blinds.
The big one-
Storage- if you have a garage, it is as simple as putting shelving behind doors at the end, or running them down one side Big plus, little cost
Bathrooms and Kitchens are the two big ticket items that tend to give you bang for buck, regardless of where you are.
Paint and lighting are two small ticket items that give you good bang for buck, anywhere in Australia.
Then as Rumpled has mentioned-
Outdoor areas open deck with roof in warmer climates, and same in cooler climates but with added cafe blinds.
The big one-
Storage- if you have a garage, it is as simple as putting shelving behind doors at the end, or running them down one side Big plus, little cost
I totally agree with bathrooms and kitchens being good for value adding.
Also, a place where people can see themselves entertaining outside. A deck or paved area, pergola or sail. Decluttering applies in the garden too. So trimming of trees and shrubs.
......and make ajax your friend!!. Very clean and neat everywhere internally(doesn't cost any money but goes over well).
Also, a place where people can see themselves entertaining outside. A deck or paved area, pergola or sail. Decluttering applies in the garden too. So trimming of trees and shrubs.
......and make ajax your friend!!. Very clean and neat everywhere internally(doesn't cost any money but goes over well).
One effective way to maximise the return from a reno is to buy a below par property in a street/area and work on the items that bring it up to par with its neighbours. It could be as simple as a good clean, tidying up the garden and/or a new paint job. Be guided by the surrounding properties.
Certainly agree with comments that freshened/new kitchens, bathrooms and laundries make positive impressions. It is also a truism that gardens sell properties.
financeuncut.com
Certainly agree with comments that freshened/new kitchens, bathrooms and laundries make positive impressions. It is also a truism that gardens sell properties.
financeuncut.com
First & foremost, paint. Not sure what size the house is or if you are doing it yourself, but if you can only do one thing, then paint would be it. Next would be kitchens & bathrooms. Again, this can easily be done within your budget if you are doing it yourself & know where to shop, but if getting tradies in, then expect a large price tag.
Ah, that explains why my next door neighbour here welded little cast iron birdies to the top of his fence and then painted it blue. A nice blue, at least. He also planted an olive tree thiiiiiiis big *holds fingers up an inch apart* in his yard to complete the landscaping. Meanwhile I've got a yard with gravel mulch and some healthily growing lomandras and proteas that puts his mega olive tree to shame.
Neighbour in my old house has a pink fence I posted a photo of on another thread. Its bright pink (on an 1870s cottage) with a rather random wave cut across the top. Their frontyard is full of rubbish, and the fence now sports a LOT of graffiti on it - that the owners did themselves
They have trees that look good when they are growing well, but for some reason keep cutting them back really hard so they are mere twigs. I guess that is so you can best appreciate their rubbish collection.
Neighbour A is actually trying to do his place up to sell, and Neighbour B is currently Very Excited that his house is worth $50,000!
Neighbour in my old house has a pink fence I posted a photo of on another thread. Its bright pink (on an 1870s cottage) with a rather random wave cut across the top. Their frontyard is full of rubbish, and the fence now sports a LOT of graffiti on it - that the owners did themselves
They have trees that look good when they are growing well, but for some reason keep cutting them back really hard so they are mere twigs. I guess that is so you can best appreciate their rubbish collection.Neighbour A is actually trying to do his place up to sell, and Neighbour B is currently Very Excited that his house is worth $50,000!
The cheapest and simplest 'reno' can be just cleaning out the clutter and junk. Stripping the place back to its original features and making it light, bright and clean. Sometimes you can achieve this without a new bathroom just a repaint and even creating the perception of extra room by reswinging doors for instance.
But it depends on your purpose - reno for refinance is different to reno for rental return.
Have fun
Jane
But it depends on your purpose - reno for refinance is different to reno for rental return.
Have fun
Jane
I would go with Buzz and Skater.........
'Declutter' and paint.
Declutter is a very cheap way of maximising potential with minimal cash offset, and Painting is a reasonably inexpensive way of adding value, provided you are half decent with a brush.
Rumpledelf.........Just a quick question here.......Why would you spend money renovating other areas on the house, when your roof is 'leaking like a sieve'. I would have thought this would be considered to be more critical??
Cheers,
'Declutter' and paint.
Declutter is a very cheap way of maximising potential with minimal cash offset, and Painting is a reasonably inexpensive way of adding value, provided you are half decent with a brush.
Rumpledelf.........Just a quick question here.......Why would you spend money renovating other areas on the house, when your roof is 'leaking like a sieve'. I would have thought this would be considered to be more critical??
Cheers,
I agree with all the above.
Maybe clean and paint first and then reassess to see how much difference that makes. It does depend on what you are after. If you are wanting to revalue it either now or in a few months then maybe do it all now, it is hard to get stuff done with tenants in place.
If you aren't wanting it revalued for a year or so maybe just give it a quick spruce up now, stick tenants in for a year then have them move out, reno and revalue then new tenants at a higher rent to reflect the awesome reno job you have done!
have fun.
Maybe clean and paint first and then reassess to see how much difference that makes. It does depend on what you are after. If you are wanting to revalue it either now or in a few months then maybe do it all now, it is hard to get stuff done with tenants in place.
If you aren't wanting it revalued for a year or so maybe just give it a quick spruce up now, stick tenants in for a year then have them move out, reno and revalue then new tenants at a higher rent to reflect the awesome reno job you have done!
have fun.
i'll agree with the majority - declutter and clean inside and out, then paint and flooring, then moden fittings - new curtains in neutral colours, new shower curtain, maybe new oyster light fittings.
really depends on what the end goal is - if it to increase the rent, is it for resale, is it for your book?
really depends on what the end goal is - if it to increase the rent, is it for resale, is it for your book?
When to renovate a unit/house?
I would be very much interested if anyone has crunched figures and compared the final outcome on this scenario. Purchasing a property house/unit and renovating it as soon as purchased and command a higher rent vs renting it out as is when purchased and renovating it down the track before putting on the market. Which will outperform the other when they are both put on the market in say 10 years time.
The renovated one will give you better rental return over the course of time and the other will give you a better final price when selling as the renovation is completed just before selling.
Your thoughts will be very much appreciated!!!
I would be very much interested if anyone has crunched figures and compared the final outcome on this scenario. Purchasing a property house/unit and renovating it as soon as purchased and command a higher rent vs renting it out as is when purchased and renovating it down the track before putting on the market. Which will outperform the other when they are both put on the market in say 10 years time.
The renovated one will give you better rental return over the course of time and the other will give you a better final price when selling as the renovation is completed just before selling.
Your thoughts will be very much appreciated!!!
It depends how proactive you where with it to, the ability to reborrow and used extra leverage against another IP or PPOR. Say you purchase $200, renovate $20, reval at $240 so can pull 80% of that extra 20 that's another $16 you could have sitting on your PPOR which isn't tax deductible or to get you another investment.
Also clever renovation should be able to be revisited at less cost if you want to sell later.
Maybe you opened it up by removing a wall don't have that expense again.
You got rid of dead trees/maintenance garden.
You put in clean neutral tiles that maybe just need regrouting or touch up pen.
Kitchen is a moderm standard colour so you just change the handles or at worst a few doors if its looking worn.
Also clever renovation should be able to be revisited at less cost if you want to sell later.
Maybe you opened it up by removing a wall don't have that expense again.
You got rid of dead trees/maintenance garden.
You put in clean neutral tiles that maybe just need regrouting or touch up pen.
Kitchen is a moderm standard colour so you just change the handles or at worst a few doors if its looking worn.
I think doing both could offer the best returns. So for example renovate the home right away but don't spend much on things that will wear out from tennants, just renovate the structure, painting and major things. You can tidy it up with a few cheap things for decorating at a bargain store and then command higher rent. Now in say 5 years when you want to sell it you might just need to give the paint a wash or a touch up and spend a little more on sprucing it up for sale and you have now got 5 years of high rent plus a higher sale price.
