Best tips for adding value

hey I thought I'd throw it out there and hear from PCers on value add tips, strategy etc.

 

Fresh paint, laminate flooring instead of carpet, new fixtures and fittings, textured roller blinds or timber look venetians.

I avoid luxury items i.e real wood floors or laminate over $25 sqm, stone bench tops, glass or acrylic splash backs, tiles over $30 sqm.

 

Nice!
So do you look for places that need a revamp, Kitchen, bathroom reno etc, create extra room from dining/lounge?

 

Not too sure on laminate

 

I avoid the $12 sqm stuff and go for at least 5mm thick, these were both $22 sqm laminate (white ash and spotted gum):

 

Extra bedroom, extra bathroom, extra parking

 

I'm only just getting back into IPs after a long hiatus (4 kids).

I prefer if the kitchen bath etc. are already done!

Close to home I'm happy to renovate but looking in QLD now and trying to avoid renos because I can't be on site to keep things moving.

The kitchen in the first photo is an ikea job that cost me $4,500 including a few extra tools (kitchen was about $4000 plus I got $500 in ikea vouchers included with purchase)

Last place I did (second photo) the kitchen was lacquered pine, I had the painter sand and spray the doors white and put $100 LM merbau from bunnings on top of the old benchtops. We laid the spotted gum throughout, used tile paint in one bathroom and new chrome fittings on vanities and showers. We painted the entire house and used washed grey timber effect click together vinyl planks in the basement as it was prone to flooding and dampness (flooding issue fixed now)

 

It's very easy to give blanket advice that a new kitchen, or bathroom, paint job etc will add value (well, duh!). I believe you really need to look at each property individually. People do automatically jump to the conclusion that you need to (say) rip out the kitchen and put in a whole new one - or strip the bathroom and re-fit it out from scratch.

The problem is that lovely word over-capitalisation! It would be lovely to totally renovate every property, but then you probably wouldn't ever make any money. There is a fine balance between adding value and over-capitalising and I could go on for hours - but I have to go and show one of my clients how to really add value to her property ;-).

In all seriousness; you really don't always need to strip back and start again. I've had loads of clients do awesome trick-up reno's. I'm a bit of a design lover (design snob, even!) so I make sure my clients never compromise too much on the overall look of the end result. It always looks great - it just might not be all new.

I think one of the best ways to add value is but chopping up or opening up a room within the existing foot-print of a house. So, that might be to turn the laundry into an ensuite (house layout dependent of course) and then put the laundry in the garage. This might work for some suburbs and not for others. Or pull out a wall between the lounge and kitchen to open it up. Some very simple structural changes can make a massive impact. There are lots of options here as long as you have the right house to begin with.

A good way to ascertain what you could/should/shouldn't do to a property is to do some comparisons with other houses in the suburb. See what other houses are selling/renting for and why. What features do they have that yours does not. Also, who is your target market? Cater your reno to the functionality requirements of these people (ie secure back yard for young families, a bath or not, extra security for single parent families etc).

Good luck - hope it goes well. Make sure you post some pics when you're done!

 

I'm very much interested in "value add" for valuation, as I am planning to renovate my kitchen at my PPOR, which I have no plan to sell or rent out at the moment.

Do you think updating kitchen appliances from old outdated ones to a more modern look stainless steel ones will add value in the eyes of a valuer? What about ceasar stone bench top vs. laminated stone look bench top?

 

Vinyl flooring for kitchen ...timber look alike. Or try vinyl planks from bunnings. For real cheapo places this would be perfect

 

• Fresh Paint - Hogsbristle 1/2, white glossy oil based architraves and skirting boards
• Cheap 12mm min laminate floating floor.
• New white aluminium blinds

 

I'm new to renovation, so this question might be a bit basic to you, but I've got to ask... What would these differences be? Why would a valuer see it differently to a buyer, and renters differently again?

 

Valuers will have no emotion involved in valuating a property, following their heads, while buyers, especially PPOR, will mainly follow their hearts.

 

This is a great thread so far. May i add that a healthy green lawn really helps with first impressions. Or if you landscape the front yard well you can really add to the wow factor. I'm sure im not the only one thats a sucker for nice outdoor entertaining areas.

 

I've been told valuers look more at stats and comparable properties than the finer details. Emphasis on what the bank could sell it for fairly quickly in the current market.

So 3/1/1, 4/2/2 etc as a start, measurements, block size. A base value seems to be if everything is in fitting with the house and in serviceable condition.

While renovated components will probably have an effect, from what I've been told it won't have the same impact as it might to potential buyers, especially PPOR buyers.

 

This is true. In some of the lower socio-economic areas of Adelaide, a full renovation is paint and new flooring. I am renovating closer to the CBD in Perth and replacing kitchens during a reno is common. The last place I renovated, I used a good condition secondhand kitchen from gumtree, which worked well and was cost effective.

In better areas, if you don't do a full new kitchen with stone benchtops, you won't get a good return. For example:

15 Briggs Street, Bassendean, WA 6054 - Property Details

You really need to pitch the end product to what the market expects in the area.