Browse Forums General Discussion 1 Jan 04, 2009 6:14 pm Hey,
Just getting slighty confused regarding median prices, to what extent do you use them? We are considering purchasing a property that is $200,000 above the median price of the suburb but are also significantly lower the some of the higher end properties in that suburb by about $300,000. How do you assess if this leaves enough room to make money through a reno/extension? All advice is appreciated ps. its located in Perth WA Re: Median Prices + Renovation 2Jan 04, 2009 6:41 pm median house prices are basically all the sales added together and they work out the middle price that being the median house price these are not the true price .They average out the price ,you need to look at the price the houses are selling for.I Re: Median Prices + Renovation 3Jan 04, 2009 7:33 pm Couple of things to think about:
- median price is "rearward" looking (ie looking at history). So, "cheap" today doesn't mean it is cheap (but if you're going to live in it for the long-term, it doesn't make much difference, unless you're going to get a very large (%) mortgage to purchase it). - with such varying prices in the suburb, it suggests that the suburb has some old/derelict/poor quality homes and some good quality homes. So, ask yourself, where would you place the house you're interested in, in that scale. Alternatively, the wide range of prices can be result of volatile property prices in the area. Chris Re: Median Prices + Renovation 4Jan 04, 2009 7:59 pm I was going to say that if it's 200k above the median price for the suburb then it should already be renovated!
I think it depends as there are so many variables. Prices in the suburb we bought in vary drastically due to: - sought after character homes such as Queenslanders in the area attract a much higher price, especially if already renovated - very different land sizes (anywhere from 400m2 to 2000m2 - number of bedrooms - most places were only 2 bedroom or 2 bedroom with a sleepout - anything with 3 bedrooms or higher attracted a higher price because they were harder to come by in the area - proximity to water (we live near a river, obviously things closer to the river = more expensive) - proximity to shops / transport / schools and freeway entry - modern renovations as opposed to ultra ******* renovations And then all the things other posters have already suggested So I guess for me it would depend why it is being priced so differently and whether I thought I would be overcapitalising by renovating. It also depends on what you're renovating - surely - as a good bathroom will rarely lose you money Re: Median Prices + Renovation 5Jan 04, 2009 8:18 pm all points considered.....
the house at present is a 3 bed - 1 bath which has been fully renovated including the kitchen, bathoom and a rewiring etc but we are looking to extend it to add a master bedroom and a bathroom hence 4 bed - 1 bath and bump it up the property market as well.... what are your experiences on extending a recently renovated house? Re: Median Prices + Renovation 6Jan 04, 2009 9:54 pm I wouldn't take much notice of the median house prices as these statistics can lie. Few reasons why it may not be applicable are:
- few sales for the quarter - year whatever - a 10 acre block may be sold for a shopping centre complex and this block may be included with houses worth $200k to work out the median - every house has unique selling points, can be in good/bad parts of the area. So bascially when you group each of the sales together for a particular area, there are soooo many variables don't take too much notice to a median house price. Make your decision more on relative houses in the same area and factors such as potential, location, proximity to schools etc - or what else is important to you. Cheers, e ICK So glad the building is over, never again. Loooove our house, but still not quite sure it was worth all of the stress they put us through! Tradie may sit at home but will need to get house plastered as well or will you sit it out? 6 9974 Hello Josh, This is Irving from PRIMA, we are a manufacturer of the staircase, railings, kitchen cabinets, windows, doors from China. If you have requirement to purchase… 0 5465 Coming back to your old stomping grounds, huh? Renovations on a budget can be quite the journey. It's like giving your house a new lease on life. The twist of not knowing… 1 3482 |