Join Australia's most dynamic and respected property investment community

Ideas for value add to an apartment

Discussion in 'Renovation & Home Improvement' started by larrylarry, 16th Jul, 2015.

  1. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Hi there

    I've always set out to buy houses but I am also open to good full brick apartments. But I don't have ideas how one can value add to an apartment. Any idea?
     
  2. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,373
    Location:
    Somewhere in the land of Oz
    Do apartments still come with kitchens?o_O
     
    Esh likes this.
  3. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    I know what you mean @bob shovel the apartment I'm looking at faces a row of local shops. There have been discussions to redevelop the shops into a shopping village and I think there's scope for growth. It's also about 50 metres to a train station. Would love to buy a house and create equity through Reno but I'm open to apartments .
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,715
    Location:
    Sydney
    Hi Larry,

    In my experience the 2 areas to enhance would obviously be the bathroom and kitchen. The important questions for me when looking at renovations are:

    1. Is there scope to add value to units in the suburb I am targeting?
    2. What is the price differential of an unrenovated unit compared with a renovated unit?
    3. If the profit margin (equity increase) is worth it, will my equity/cash invested give me the best return on the renovation or into another ip.?
     
  5. Pistonbroke

    Pistonbroke Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    395
    Location:
    Guangzhou
    Simple renos like covering vermiculite ceilings with plasterboard (don't paint them), replace floor coverings, update lighting, install roller blinds, kitchen/bathroom refurb, storage in garage.
     
    Esh likes this.
  6. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    @larrylarry

    Floor covering
    Window coverings
    Kitchen doors
    Fresh paint on wall
    Update vanity in bathroom
    Update lights


    Will add value to apartments and won't cost you too much.
     
    Esh likes this.
  7. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Thanks. I think there's a good scope for CG and that's why I am even considering apartment. It's an old apartment, no lift and pool. Just good old solid apartment with a view to the shops. I think the bathroom needs a simple update.
     
  8. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    @larrylarry

    3 story walk ups are good for investment.. It will be cheaper to hold them too, as low starta cost.
     
    larrylarry likes this.
  9. Pistonbroke

    Pistonbroke Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    395
    Location:
    Guangzhou
    Also add reglaze bathtub, add shower screen if you have a shower above the bath, heat lamps.
     
  10. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,715
    Location:
    Sydney
    There are many good products that can save you a lot of money eg, resurfacing paints for tiles and cupboards. Bath tub products to make it look like new. It might be worth looking into.
     
  11. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    It's a 3 storey but only on second floor. Thanks for all the inexpensive ideas. Now, I need to find out if the price v rent and costs are worth the effort.
     
    Esh likes this.
  12. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Yet to do a reno but plan on doing my apartments over the next 12 months. I learned heaps doing Jane Slack Smith's Ultimate Guide To Renovation course (highly recommended).

    Options:

    Cheap – Paint, re-carpet, polish floorboards.

    Moderate – Update kitchen/bathroom e.g. resurface, new taps, handles etc.

    Full – New kitchen, new bathroom etc
     
  13. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    The apartment I am looking at is just listed. Vendor/Agent can't advise expected price range. Previously rented for $500. Strata $700 (ouch). Should get the contract in 1 hour. First inspection this Saturday. In such a hot market, I guess I will wait for others to make their offers first.
     
  14. JonoD

    JonoD Active Member

    Joined:
    5th Jul, 2015
    Posts:
    30
    Location:
    Brisbane
    1 bed? $700 strata seems pretty cheap for a 3 story walk up. Check the strata accounts, make sure sinking fund has some cash in it.
     
  15. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    3 bedder. Yes that's what I'm going to check next.
     
  16. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Just came back from the inspection of the unit. The bathroom and kitchen (with laundry) need update/more storage. the position of the unit is quite good. $20K job possibly.
     
  17. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Thanks. I'm looking into it. In terms of older style units (30 years old), there aren't many on market but many new apartments in the surrounds.
     
  18. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    During inspection of this particular unit, I find the bathroom is really small. The shower area adjacent to bath tub is very small. I'm wondering whether bath tub is a thing of the past. Without the bathtub, the shower area could be larger and more storage. What do you think?
     
  19. Reno Crazy

    Reno Crazy Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    55
    Location:
    Vic
    I keep bath tubs in my 2 bedders as it is an option for single parents as kids love baths (well most do) I have taken them out of one bedders but check the plumbing first as it can be a nightmare if the trap is higher than the floor you will then have to do a step up into the shower. I would keep the bath if you have both.
    Check the AGM minutes and make sure that there isn't any expenses coming up or non paying owners. Was $700 pa or per quarter? Cheap if p.a
     
  20. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,578
    Location:
    Australia
    Add to the list

    - new front door
    - built in robes
    - internal laundry if one is not present
    - additional storage space if possible