How to increase value for sale

Hi!
I’m going to sell my 4 bedroom property in Melbourne upwey soon. It’s had tenants in it and the agent who valuated it told me it looked tired.
What have fishes done to prepare for sale to increase the value?
Painting?
Carpets?
Stain outdoor deck ?
Kitchen is really old, bench not in good shape,is there a cheap way to facelift this?
I will landscape the gardens.
I recently renovated the bathroom entirely.
Anything else anyone can suggest?
Thanks

 

I love older properties in need of attention. The price is lower than if the place had been renovated, less stamp duty, lower council rates, and I can do the reno to suit me. Other people like to buy and move in, no reno needed. Painting is easy, can be DIY, although the time to do this will be a factor. New carpets can add a lot to the look. A new kitchen will cost perhaps $20-25,000 for demolition, installation, sparky, plumber and tiler. It could take months to get this done.

Sight unseen it's had to say where funds are best allocated, if this is worth the wait, and if the probable sale value will increase by more than the expenditure. I'm tending to do the least and quickest. A god front garden gives a good first impression, so maybe have that done. Advertise that the property is in need of a little attention; this will attract people like me. A private sale may be advised so that bidders do not know what other bids are.

 

All those things will improve the appeal but there is always a tipping point on presenting things well economically vs. overcapitalising.

Therefore I'd get specific feedback from the agent on exactly what they would suggest addressing given they have given the feedback- and worth getting a second opinion as a sounding board.

 

Pressure wash the whole house, including the roof. This is a very underrated way of making the whole place look brighter and newer and makes an amazing difference!

Kitchen bench could probably be sanded and painted, as well as cabinet doors. Another cheap and easy way to refresh without going to town.

Also look to change old light switches and light fittings, as well as any old window coverings. These can make a big difference and aren't too pricey.

Definitely paint and carpet as you have mentioned.

You'll get your money back and more for all of the above, including your own suggestions.

Good luck!

 

That’s great advice I hadn’t thought of pressure washing. Paint and carpet will likely cost $10-15 grand. Worth it you think? It’s a lot of money to outlay.


QUOTE="MyPropertyPro, post: 1348784, member: 4319"]Pressure wash the whole house, including the roof. This is a very underrated way of making the whole place look brighter and newer and makes an amazing difference!

Kitchen bench could probably be sanded and painted, as well as cabinet doors. Another cheap and easy way to refresh without going to town.

Also look to change old light switches and light fittings, as well as any old window coverings. These can make a big difference and aren't too pricey.

Definitely paint and carpet as you have mentioned.

You'll get your money back and more for all of the above, including your own suggestions.

Good luck![/QUOTE]

 

Ask the selling agent if the cost will be recouped in a higher sale price. If the property is worth $500,000, the $15,000 reno cost is 3 per cent, and is added to the capital base, reducing capital gains tax. Sight unseen I'm tending to agree with Andrew.

Make sure that the job order is best. In all my renos I removed the carpet, a hard job but easier if the carpet is cut into small bits. Remove the underlay. This allows access to the skirting boards. Then do the dirty jobs, dust and water. Then painting, lights and carpets are last. The carpet people remove the old carpet from the garage.

 

Thankyou! But if you are doing repairs like painting etc once the tenants move out, you can’t claim that as a tax deduction or to reduce capital gains I thought?

 

Have you confirmed your thoughts with your tax advisor?

 

My understanding is that renovations may be added to the cost base. Claiming Tax Deductions For Property Renovations (duotax.com.au)
The cost of renovations on an investment property can also be added to the property’s cost base, determining the capital gain or loss when selling property.

The cost base includes the original purchase price, acquisition costs, and the cost of any capital improvements made to the property.

 

Comment was to the op saying they think it cant be deducted for tax or added to cost base. Point being op needs to base decisions on facts not unsubstantiated opinions.

 

Yea it'll be a capital expense, but the theory is that you'll get it back through sale price and get a reduction in CGT (secondary consideration). I would definitely think you'll get the money back, and it's relatively soon if you sell it too. If you have the ability to pay for it, I would definitely be doing it.

 

I did what Andrew above mentioned to a 3x1. Bigger jobs like floors and walls, and smaller down to replacing light fittings, curtains and rods etc.

It cost 40k, using tradies and a lot of work by myself and friends, increased the value by $100k ($60k profit), possibly more. Sold last July before the Perth boom.

We used rustoleum transformations and white night products for the benchtops and tiles.

Pressure cleaning the roof made a big difference, and little things like painting the garage door and downpipes too.

Great you’re considering landscaping, it really can make a huge difference.

 

Paint to refresh Bunnings to replace kitchen bench top are the carpets that worn they need replacing or can you get away with having them professionally cleaned street appeal nice front garden paved pathway bake cookies cake just before open

 

Until fairly recently the accepted wisdom was that the kitchen and bathroom set the tone for buy. Have these rooms sparkling and the impression is positive. It now seems that the initial impression is gained when walking to the property. Landscaping can add to the value.

 

Depends on what’s selling for what price in your area.
What are the buyers looking for and what are they paying. What’s the demand like. What’s the competition like.
Paint and lighting is usually money well spent.

 

A kick arse Balcony/verandah makes a huge difference for buyer appeal.

 

Can totally second the pressure washing part, such a difference indeed!

 

It really depends on the property in question, and the pricepoint. Would you pay for it to be painted if the added value to the end sale price was about the same as the cost of the painting? Not really worth bothering.

If you are dealing with a property which is going to appeal to first home buyers, it might be the case that doing the following will suffice :

• Washing the walls, doors, architraves, windowframes, curtains/blinds, and carpets
• Replacing all taps, spouts and shower roses with new (doesn't have to be expensive, just new and shiny)
• Replacing cabinetry handles (can DIY with handles from Bunnings and install with a screwdriver)
• Clean the paving, tidy the gardens, ensure that plants that produce flowers are watered plenty in the weeks leading up to the sale campaign
• De-cluttering, putting up some nice pictures and putting some flowers/decorations in appropriate locations
• Choosing a fragrance to spray about the place before each open for inspection

The purchaser can paint cheaply themselves if they wish, whereas they can't install all the taps themselves. You're not supposed to DIY plumbing and electrical.

 

Note @Amber83 this comment regarding tax treatment is incorrect.- please see link.

Immediate repairs from tenant damage whilst renting are likely deductible, improvements are likely capital.
Suggest seek professional advice however on determining the correct treatment.

Rental expenses | Australian Taxation Office