Small 3 bed apartment renovation - Overcapitalising?

Discussion in 'Renovation & Home Improvement' started by lynchy, 6th Jan, 2019.

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  1. lynchy

    lynchy Well-Known Member

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    Hi all,

    I'm considering purchasing a small 3 bed apartment however it is in need of a bit of work. Considering something like the below however I'm not sure it would be over capitalising or not. Purchase price would be $725k, $50k budget with hopefully a valuation around the $875 to $900k on completion.

    Would love some ideas, obviously size and storage are the key issues

    [​IMG]
     

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  2. lynchy

    lynchy Well-Known Member

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    Renovation would consist of

    1. Addition of en-suite and renovation of main bathroom
    2. New kitchen with breakfast bar looking out over north facing private garden
    3. Sanding and polishing timber floor
    4. Removal of window to living room and installation of bi-folds
    5. Painting throughout
    6. Creation of built in laundry
    7. Extension of covered balcony to adjoin living room bi-folds

    Does the small size of the apartment allow for a 2nd bathroom is a big question I have
     
  3. Joynz

    Joynz Well-Known Member

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    Those ‘double’ beds are in rooms only 2.4m wide with no wardrobes! Realistically, they should be single beds.

    Adding an en-suite will make the master quite small.

    Also, where are they going to keep sheets and towels with the linen cupboard deleted?
     
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  4. Shogun

    Shogun Well-Known Member

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    Is the original WC/toilet wide enough for a shower? Just lengthen that room. People tend to think they "need" large showers in reality small ones work quite well. As long as showers are square.
    Can you make it work not moving the WC and Bathroom wall?
    Do you really need a separate bath and shower? Either shower over bath or lose bath.
    Where C and fridge are make space like current linen cupboard. Laundry?
    Move door to position as shown in new.
    Put toilet where word bath is in 1
    Bedroom 1 door way to hall? and linen cupboard on end of en suite?
    If that make sense. I don't have skills to draw it.
     
  5. Propertunity

    Propertunity Well-Known Member

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    Windows may belong to the Body Corporate - you'd need permission.
    No BIRs in 2nd and 3rd brms is an issue for storage as well.
     
  6. lynchy

    lynchy Well-Known Member

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    Yeah the storage is a big issue. They have single beds currently and you could quite easily fit BIRs with a single but it does limit me and any potential future buyer if you do put the BIRs in

    I don’t believe the windows would be strata considering the front courtyard is on title...though I may be wrong?
     
  7. Propertunity

    Propertunity Well-Known Member

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    Without BIRs potential future buyers will complain of 'no storage'. In the USA (and I know we're in AU) you cannot even call a room a bedroom if it does not have a cupboard for clothes.
     
  8. lynchy

    lynchy Well-Known Member

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    So Single and BIRs over Double and no BIRs?
     
  9. Propertunity

    Propertunity Well-Known Member

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    Yes definitely.
     
  10. Joynz

    Joynz Well-Known Member

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    Those small bedrooms aren’t double rooms anyway!
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Is it the right investment decision in a falling market?

    Stamp duty $27k+, selling commission $15k+ & 2x legals will chew up close to $50,000.

    Transfer of land or business calculator

    It is rare for strata not to be responsible for external walls and windows. At the very least, you will need the BC to sign your development application.
     
  12. lynchy

    lynchy Well-Known Member

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    Will be a PPOR for a fair number of years. It's good value at $750k or less. Sold in December 2015 for $740k and I have no doubt would have received up to $900k at the height of the market given I have been researching this suburb daily for 18 months.
     
  13. Travelbug

    Travelbug Well-Known Member

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    It is quite difficult these days to get strata approval for reno's. You will need an engineers report and will probably need to pay for a bi-law to remove ad move walls. That will be a considerable cost. I would only put a built in in 1 bedroom. Gives 1 more flexibility to use as a study. They are tiny rooms.
     
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  14. Trainee

    Trainee Well-Known Member

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    How are you determining value here? A buyer will always compare this to other 3 bedrooms and 2 bedrooms. Its a good 2 bed size that has been cut into a 3 with small rooms and no storage. Just on rooms its hard to see why this should be more expensive than a better laid out 2 bedroom.

    ‘Strange’ properties can be good value but they have the same issue when you sell.
     
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  15. Marg4000

    Marg4000 Well-Known Member

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    Those rooms aren’t doubles. They are singles.

    Or put built-ins in just one of the small bedrooms. Many people want thecextra bedroom to use as a study or office.

    What’s the point of putting in a double bed when there is no room for storage? Where are the occupants supposed to keep their clothes and other possessions? It would only work as an occasional guest room.

    And most people want queen size beds today, which would be a tight fit.
    Marg
     
  16. housechopper2

    housechopper2 Well-Known Member

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    Do you need the extra bathroom? If you are living in the place yourself and without kids, I wouldn’t bother adding the second bathroom. Save $15k and just renovate to the existing floor plan and add some small BIRs to the other bedrooms.
     
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  17. Archaon

    Archaon Well-Known Member

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    any floor plans of similiar 2bdrm units in the area?

    I can't really see much to do with the limited space, and not a fan of there being no seperate shower.

    The bedrooms are 3.4m long which would allow a built in robe bringing them down to 2.9x2.4ish.
     
  18. lynchy

    lynchy Well-Known Member

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    Ended up going with a different apartment with a floor plan that suited us far better...still small though.
     

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  19. housechopper2

    housechopper2 Well-Known Member

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    Courtyard on title? Looks great
     
  20. lynchy

    lynchy Well-Known Member

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    Unfortunately not. It’s private and has been for 10 years but it’s not even exclusive use.

    There’s an agreement between the Strata and previous owners for $30k towards capital fund for exclusive use. I’ll try for $30k towards Capital works for on title.
     

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