When is a good time in the market cycle to renovate?

[Keen]

I've had two agent tell me that there would be little value in cosmetically renovating my IP that I'm looking to sell in the next 3- 9 months as the Perth Market is so hot.
Do others agree? Or are they just trying to get me to sign up asap so I don't reconsider selling?
I have a tennacy ending the 18th and am considering some cosmetic change - ie white knight (paint) a bathroom, perhaps replace carpet and put a up a patio.
Am I wasting my time?

Regards

Keen

 

[Simon]

I've had two agent tell me that there would be little value in cosmetically renovating my IP that I'm looking to sell in the next 3- 9 months as the Perth Market is so hot.
Do others agree? Or are they just trying to get me to sign up asap so I don't reconsider selling?
I have a tennacy ending the 18th and am considering some cosmetic change - ie white knight (paint) a bathroom, perhaps replace carpet and put a up a patio.
Am I wasting my time?

Regards

Keen

I cannot answer your question directly. But I agree it would be an unusual REA that wouldn't prefer you to list immediately through him.

Is there someone else that can give you some advice? Do you belong to any formal or informal Perth investing groups?

 

[paulie]

Hi Keen,

Whilst not knowing your selling situation (why sell?), or your property's condition, I would always think that you will receive a higher sale price, especially in a hot market, by carrying out the cosmetic changes and hence maximising the presentation of your property to all potential buyers, be they investors, owner occupiers or what ever.

I would be hard pressed, as would any other agent, to quote you a firm figure for your planned work. IE if you spend $5,000 on the kitchen, you will get back an extra $2,000 on top of the $5,000. Instead I would be wondering about how long till you put your property on the market, and adding 3-5% per month in terms of your property's current value as to what you could sell it for.

So, without further info I'd suggest you do the reno's you mentioned and then reassess.

cheers


Paulie

 

[ArJay]

Yeah I'm with Paulie...he makes some good points.

I'm not in WA but regardless of the market sentiment if you know where to hit it and how to keep the costs down personally i'd go for it. If there's room for adding value to a property before sale (or a reval for that sake) then it's a go for me. So long as you go for maximum effect within a fairly tight budget and can do it reasonable quickly then I reckon you'd be mad not to give the property that extra appeal.

Without knowing the property it's hard to add input as to what to do etc but bathrooms and kitchens are obviously the biggest value adders (as you prob already knew). There's a company/guy here who'll re-enamel and entire kitchen for about $1500. Countertops, doors, you name it. Takes a couple of days and you'd be amazed at the difference. Same goes for bathrooms...

Does it need paint? A new lick of paint in and out with a good colour scheme and a bit of landscaping etc can add heaps of val on the cheap. I'd at least do these for a start myself....

Good luck with it!
R

 

[Keen]

Thanks guys. You comments agree with my suspiscions.

Paulie, I'm considering selling to pay out my PPOR debt to increase servicablity.

Regards

Keen

 

[TheBacon]

G'day mate.

Have a look at the Sydney 2003 posts. There seemed to be a lot of people paying more for UNRENOVATED character houses than done up houses.

Seemed to be mostly inner city / harbour / coast and great old beauties. Probably doesnt apply to your situation, but stuff like this seems to be common in boom/peak periods.

That said, in Perth, renovated places still seem to sell for more, perhps because people know just how hard it is to get trades at the moment for reasonable prices...

good luck, post pics of your reno

TB

 

[D.T.]

Hi Keen,

Which suburb is it in if you don't mind me asking?

 

[MTR]

Keen asked about 10 months ago "when is the right time in cycle to renovate".

Shame, Perth market has now stalled.

Is it the right time now to be looking at well located properties, inner city, coastal (1/2 streets back from beach), house in need of cosmetic surgery and flogging/holding??

Ta