Selling a property and presale reno - how far to go?

Discussion in 'Renovation & Home Improvement' started by Lacrim, 5th Mar, 2020.

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  1. Lacrim

    Lacrim Well-Known Member

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    Hi all, selling a 2x1 fibro house in Western Syd.

    Not sure how far I should go...I mean I could plonk $50K and get no more than that back. I don't know, it's pretty hard with a property like this where its further out from Sydney and the value is really in the land (600 sqm). House comes for free.

    What do you guys think? What would you reno as a minimum? I'm thinking just a general clean and paint job ie leave the bathroom and kitchen alone.

    Not sure a FHB will buy it - they like shiny and new with nothing to be done. Probably will sell to an investor or someone who has plans down the track to demo and rebuild.
     

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  2. wylie

    wylie Moderator Staff Member

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    What sort of price would this fetch? I wouldn't spend anything on it, but sell it "as is". You are going to be offered lowball prices regardless of whether you bog up the windowsills, paint or not in my opinion.
     
  3. Lacrim

    Lacrim Well-Known Member

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    Price range between $600-700K max. Am in agreement with you. I bought it 'as is' too.
     
  4. Shazz@

    [email protected] Well-Known Member

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    Check with the real estate agent whether cosmetic changes would fetch more and by how much?
     
  5. Mark F

    Mark F Well-Known Member

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    While I like a bit renovation, I've been buying run down places, lived in them while slowly renovating and selling after 2 to 5 years since the early 70's. I suspect the place is too far down the worn out path for a quick and cheap reno to meaningfully boost the price. Anything you do to fix up one bit will just make the bits you don't get to look worse.
     
  6. Lacrim

    Lacrim Well-Known Member

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    Yeah I'm glad most are thinking the same.
     
  7. Player

    Player Well-Known Member

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    Don't touch it. Where would you start and finish. If it was at least a 3x2...maybe?

    If you did anything, consider the potential upside return (if any) of spending some money towards
    a DA. Is it zoned for two or three townhouses?
     
  8. Lacrim

    Lacrim Well-Known Member

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    I think the most you can get on that land is a duplex, and that might be a stretch as well due to the frontage. All it has going for itself really is proximity amenities and schools and a decent sized block.
     
  9. Lacrim

    Lacrim Well-Known Member

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    His opinion was identical to mine, which is:

    • paint job
    • garden cleanup and parring back of bushes/shrubs to highlight land size
    • clear the gutters
    • minor handyman stuff eg fixing of door handles etc.
    Am guessing all this will set me back about $5K. I'd prefer to spend $0 but I think I'll get my money back and then some compared to doing zip (and believe me, it's tempting).
     
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  10. Shazz@

    [email protected] Well-Known Member

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    Here’s my experience:
    2012- Bought a 3bed fibro in Western Sydney for $360k. Not the best location, as it was next to stormwater drains and a public walkway which was prone to graffiti- but at the time, that was my budget and family were close by. The block had a weird shape too where you couldn’t add a GF either and that was something most investors were looking for at the time. And lastly, had no street appeal. In all honesty, had no idea about market timing, just bought as I needed somewhere to live. First home.

    Spent 20k fixing it up, including new bathroom, laundry, kitchen, internal painting, new flooring. This was a PPOR, so wanted it nice to live in.
    Sold in 2014 for $570k. Did the $20k add more? I don’t know as the market was already booming. What it did do though was appeal to a first home buyer, as the internals were done and all they had to work on was the externals. And as the property was in a relatively poor location, it attracted a sale, which may have been harder if it was not renovated.
    Point I am making is you just need to assess whether your property is sell-able as is, or do you do a little bit of a cosmetic makeover to make it just that more appealing.
     
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  11. Lacrim

    Lacrim Well-Known Member

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    I don't think I could get away with < $30K to make it 'attractive'...plus it is obviously fibro which puts some people off.

    The main attraction of the property is location, location, location which I'm HOPING will lure the buyers in. The dark horse is COVID19....so am keen to put this baby on the market ASAP. Renovating it will set me back maybe 3-4 weeks. That's the conundrum.