PDA

View Full Version : How much is optimum when renovating??



stephens.pc
24-10-2006, 10:31 PM
My brother and I are looking to get our house on the market sometime over the summer, but will need to do further renovations before doing so. So far we been doing the basics - new paint, landscaping etc. Currently we are considering whether or not to borrow more money and do more major renovations, particularly in the bathroom and kitchen, or just continue with basics before selling. Any thoughts on which way we should go? Obviously we are looking for maximum profit from the sale.

Longtack
25-10-2006, 05:55 PM
Some investors use a rule of thumb of "Spend $1 to earn $3" and I'm also guided by other considerations:

* Consider the state of the property in relation to others in the street, as you don't want to end up with the best house in the street as you may not realise the maximum % for your investment on sale. If you own one of the worst in a "good" street, then if it has good bones then I'd consider throwing good dough at it. LOCATION is at the top of most buyers criteria.
* Unfortunately kitchens and bathrooms seem to suck up much of a budget, particularly unfortunately so as many buyers are most attracted to those two areas. If you can lay your hands on a new kitchen joinery kit for around $5k and have a good plumber, sparkie, chippie to help you then go for it.

Good luck and have fun.

stephens.pc
26-10-2006, 03:31 PM
Thanks for the advice Longtack, I think we might have to bite the bullet and do a proper job on the kitchen and bathroom.