How to decide on renovating or buying again

What process do you use when you're trying to decide whether to renovate or sell and buy something already renovated?

What is the hardest part of trying to work out what to do? Is it working out the cost of the renovation or what work should be done?

 

Hi KLH.
Not entirely sure what your first question is. "Or sell and buy?" Do you have a property needing reno?

Anyway....
I'm assuming you have a property that could use a reno that you are thinking of selling. I'd work out what renos are going to make you money, and also know your target market for the area. Some work you can usually get 3x your money back. Kitchens, bathrooms, painting, landscaping, outdoor living areas, anything that adds to curbside appeal without breaking the budget are all good candidates for this, buyers like an updated kitchen, nice bathrooms, etc.

If you are in a low socioeconomic area, understand how much your target market will pay for each improved aspect. Some of it may not stack up dollar wise so know how much uplift each item will give you. Also go basic but functional, don't overcapitalise.

If you are in a nicer more upmarket neighbourhood, these items should help get you better prices, and the buyers may expect caeserstone quality benchtops etc. Go for that over laminates.

Secondly, if you can add extra bedrooms without major cost, consider getting that done. Note, there are also holding time costs... doing this work you may be not getting rent for a few weeks, please keep that in mind. It can be an internal reconfiguration. Check if/which of your walls are lightweight, (non load bearing). Its easy and cheap enough to take walls down and put up other walls with some gyprock. You can change areas around. If it gets you an extra 100k on your sale price, its worth generally speaking.

Also, consider getting your place styled when selling. A 3k investment in styling is likely to bring in much more than your 3k return.

If you already have nice furniture, you can use that, no need to spend money for that. But look at your artwork etc, get nice artwork put in, ditto add some little touches to get that emotional appeal and a better sale price.

Also, best idea. If the property is not a dog, consider not selling! Renovate (kitchen, painting, maybe add the extra bedroom or 2 etc) then get it revalued. Hopefully you have created enough equity to be able to pull out and just buy again.
Rinse and repeat....

 

You can manufacture some nice equity by buying property that needs renovation (if you know what you are doing). As Gockie said- you can make 3 X what you spend. If you buy a re orated property you are paying for someone else's Reno. But beware, with all the Reno shows some people overpay for fixer uppers, when they could have bought something renovated for not much more. You need to know your market.