Browse Forums Increasing Home Value Re: $1 for $1 home improvements as home resale value... 12Nov 11, 2008 2:47 pm Hi Ed,
What we have found with our renos is that we get about $4 for every dollar that we spend on the outside (first impression from front) and about $2 back for every dollar that we spend inside. This is all very relative to what you decide to do to those areas as well. For example, carpet seems to show us better returns then floor boards in your middle range Melbourne suburbs, 3/4 bedroom homes. However in Qld, having tiles in the living / family area seems to be more attractive to buyers and therefore show us better returns. What it comes down to is what the customers in that area find important to them and will find desirable. For example, in those same middle range suburbs with homes ranging $250K-$350K, having marble benchtops does not give that great a return as opposed to putting in a bath or converting a laundry into a second bathroom. etc etc I hope this has helped in some way. All the above mentioned information is based on my personal experience only, and analyzing the costings of our previous renovaitons and profitability of those deals. - Contributor to Australian Property Investor mag, Wealth Creator, YIP, Property Review Weekly, Herald Sun, Courier Mail, 4BC radio, 2UE radio, Southern FM, etc http://www.RenovateAndProfit.com Re: $1 for $1 home improvements as home resale value... 14Nov 18, 2008 12:48 am chris1972 I spent $80,000 for a 780m2 block in the outer west of Melbourne. Show me a house that I could build for $80,000. hi where did you buy the land? Re: $1 for $1 home improvements as home resale value... 15Dec 03, 2008 8:27 am i purchased my land in Bayswood Estate in Aldinga for a cost of $72,000
387m2. Just the most basic of houses (3bdrm +ensuite with enclosed garage) is starting at 98,000 without foundations or floor coverings. Re: Sydney First Home Buyer, Sydney First Home 16Dec 03, 2008 8:47 am thlo wakeboardandy thlo Yak_Chat Hi Ed, If you're rebuilding a home from scratch, don't spend more on the structure than the value of the land. This is very interesting. At the moment, people are spending $180,000 for a house on $120,000 blocks in Melbourne. I would say 90% of people who are building in estates in outer suburbs of Melbourne would be spending more on the house than the land. That's not good. Recipe for negative equity in bad times. In Sydney you can have vacant land for $250,000 or 3 bedroom brick veneer house for $270,000 that is on a bigger block roughly in the same suburb (Dean Park), where Stonecutters Ridge is being developed. Which one would you choose if your funds were limited and loans were hard to get? Just like Craig - we would be hard pressed to find a house to build that was cheaper than our land! Possibly in some of the inner suburbs of Melbourne, it wouldn't make sense to build a house that was more expensive than your land, but in the area we are building in and in alot of the newer estates, established houses are selling for more than purchasing house and land seperately, even on what would have been cheaper blocks. I guess our assmption (which has thus far proven accurate) was that as a previously unsettled area becomes established, it is inevitable that land prices rise. Re: $1 for $1 home improvements as home resale value... 17Dec 03, 2008 11:32 am I'm with you Sharee, how can we build a house the same price as our land? We are spending twice as much on the house as on the land.
We have a third of an acre and it cost us 155k. So the suggestion is to put about a 18sq house on my block? To spend the same amount? On my street so far there is a PD prestige home just starting (I can't figure out the plan it's driving me nuts ), a PD Heywood 29, a Davis Sanders that looks around 25sq, there will be a home the same as mine (Hi Liz ) 35sq.... So taking all that into account, I think we're on the money with what we're considering for our area. I think these formulas are ridiculous... the same formula cannot possible be applied to land in Camberwell as land in Wallan. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: $1 for $1 home improvements as home resale value... 18Dec 03, 2008 1:39 pm joles I'm with you Sharee, how can we build a house the same price as our land? We are spending twice as much on the house as on the land. We're building in Bundoora (about 18km from Melbourne CBD) and we'll be spending about $100k less on building the house than we paid for the land. And, our land was cheap in comparison. Land in the 3rd and 4th stages of the same estate are selling for at least $30k more than ours for smaller blocks that don't have the same view/placement (we're on a cul de sac next to a nature reserve). Re: $1 for $1 home improvements as home resale value... 19Dec 03, 2008 3:59 pm Exactiy Djelibeybi,
That's what I'd expect for Bundoora. The same formula can't be applied to your situation (a small prime estate in an established area) and my situation, (a semi-rural estate in what is rapidly becoming Melbourne's northern fringe). I don't understand how some of the sweeping statements made in this thread could possibly apply to both of us... Jo I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: $1 for $1 home improvements as home resale value... 20Dec 03, 2008 5:28 pm joles I don't understand how some of the sweeping statements made in this thread could possibly apply to both of us... They do say that 84% of statistics are made up on the spot. They make the room much easier to clean for one, reflect more light (if light colour tiles are used), and you dont end up with dust on the top edge of tiles (cause most… 3 10183 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 28068 The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4721 |