My mother has a property with a heritage listing, the property comprises of a granny flat, a house and a business run out of a garage at the back. Her rental income from this is $1400 a week and I recently had the property valued at 1.4 million. The property needs a lot of renovation work, the roof needs replacing, a balcony has rotted, new kitchens, bathrooms etc. the thing is three bedroom units in the area are selling for 1 million, so I think 1.4 million seems very low in comparison. The real estate agent told me not to renovate as anybody buying the property would want things done entirely their way and renovating would cost too much. Apparently people are paying more for unrenovated properties because they think they are getting a bargain.
Anyone familiar with the property market in Sydney and have an opinion on this? The property is located in Botany.