Hi All, I live in Herne Hill, Geelong and am deciding whether to sell up, renovate, or knockdown/rebuild (leaning towards KDRB). What I am asking for is advice on property value. House 1: (My comparison) -This house sold recently for $1.1M. -It is 4 bed, 2 bath, 2 living. -It is 547m2, on a corner block, on a roundabout (albeit a super quiet street). -It was extended and underwent a major renovation in the past 5 years. https://www.realestate.com.au/sold/property-house-vic-herne+hill-137856702 House 2: (My planned new home) -4 bed, 2 bath, 2 living with Porter Davis Homes. -557m2 block. -28 square home (Slightly bigger than this house as the backyard in the siting is smaller), with 1.5-2 times larger alfresco. -Extremely similar finishes and floor plan to the house above. My questions are: 1. If this sold for $1.1M would mine be worth that (at todays market value) when finished? 2. Do new houses tend to have a higher value than old? Extra: -For those that arent familiar with Herne Hill: -Houses are generally built around 1960. -Previously not the most desirable suburb but due to the Cement Works closure the suburb has transformed over 20 years and is now quite nice. -Borders some really nice suburbs. Advice would be much appreciated, thanks!
IMHO 1. You'd want to hope so! 2. Depends. Usually until it's lived in. In this case however, the "old" comparison is what I call a "characterless" 50's WB with upgrades (no vintage period value), so the new build would value better. The Y-man
Renovation is going to be cheaper than a new build. answer 1 - probably, it it is comparable to the example (Herne Hill is still undervalued) answer 2 - old or new? compare apples with apples - room sizes, orientation, quality, features... New volume builder homes lack "soul" and are designed for mass market appeal and really lack design quality. Ok, but not exceptional, and usually superficial in design and quality. Ask why are you doing this? - investment/money making venture or a place to live...
Place to live. Option 1: Sell my house. It's old and dated, based on recent sales I think I could probably get 720k. Then I would try and buy a house like the one in the link for around 1.1MIL. Factor in 20K selling fees and 60K stamp duty, then I am covering 480K difference. Option 2: Extension/Renovation. Probably going to cost 400k to get this to the level of the house in the link above as it would be a monumental extension and renovation task. Option 3: KDRB. Quoted at around 420k after site costs and all extras, I know the costs add up so will add 50K for things like landscaping, plus 20K for demolition so that takes me to 490K. Im not a fan of Option 1 as I find selling/buying extremely stressful. Option 3 might cost 90k more than option 2, but hence my question, will I end up with a more valuable house?
