Adding value to existing properties?

Hey guys,

A lot of people are recommending with the current market slowing that adding value to existing properties is the way to go...What tips/ recommendations and strategies do you guys have for adding value? Any advice will help

Is it just the stats that valuers are looking at (eg 2 bathrooms, 4 bedrooms, 1 parking) or is it worth me spending money on the finer aesthetic details. My IP's are older properties and full of old carpets, ugly wallpaper, pink walls and bad vinyl flooring. If i spend 10-20k on these aesthetic things I'm wondering if it will add value to the properties in the eyes of the bank valuer? I think it would add value to a PPOR buyer.

My Deer Park property has a 2 bedroom bungalow with kitchen and bathroom that is currently in a bad state. Anyone have experience with the addition of a bungalow to a house in Melbourne? I've seen its pretty common in Queensland but not such Melbourne.

Thanks

 

Adding value is a great way to manufacture some capital growth when it's done correctly. I don't know those area's at all myself. First look at properties selling in the area to see if there is a price difference between renovated and un-renovated properties, this will give you an idea as to whether it's worth doing in the first place. Talk to local Real Estate agents to see what is in favour and in demand. If you renovate make sure you do renovations that appeal to the mass market, don't do anything way out there and stick to neutral colours etc. Renovations basically full into 2 categories, structural and cosmetic. Start with cosmetic, which is ripping out carpets, painting rooms etc.

 

It's entirely dependent on how much you paid for the property in the first place. If too much was paid (inflated land value) then improvements may just keep the value of the property, keep it competitive to rent, rather than increase the value. Improvements are likely to give you an edge but how much is impossible to say. When older properties in need of improvement and major renovations sell for the same as new builds, in average suburbs, I think we have a problem.