Author Topic: Renovate or not in Sydney  (Read 2284 times)

chouchouu

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Renovate or not in Sydney
« on: January 22, 2016, 04:41:04 AM »
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.

accolay

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Re: Renovate or not in Sydney
« Reply #1 on: January 22, 2016, 05:45:22 AM »
Sorry, I know nothing of the Sydney property market, but it did interest me when I used to live there.

You're definitely selling? Can you get another opinion?

My Conspiracy Theory: My family owns a single family home that needs renovation. We had a real estate agent take a look and we got the feeling that the values were quite low and that the agent knew people in the industry who would make a handy profit if we sold at the suggested value.

chouchouu

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Re: Renovate or not in Sydney
« Reply #2 on: January 22, 2016, 04:58:04 PM »
I'm definitely getting second opinions. We would probably sell at auction which is very common in Sydney.

chouchouu

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Re: Renovate or not in Sydney
« Reply #3 on: January 22, 2016, 05:01:06 PM »
I'm pretty sure we're going to sell it. My mother wants to either sell it or leave it to us kids to manage, which I would normally be up for but knowing my mother that's definitely not going to be the case and would be a huge headache trying to run things by her all the time.

accolay

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Re: Renovate or not in Sydney
« Reply #4 on: January 22, 2016, 06:01:42 PM »
How many siblings would share the property? It can work, but can also be a real PITA. Unsure about laws in Oz, but in the US with joint owners, anyone can force the sale if they want to cash out.


chouchouu

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Re: Renovate or not in Sydney
« Reply #5 on: January 23, 2016, 05:56:24 AM »
How many siblings would share the property? It can work, but can also be a real PITA. Unsure about laws in Oz, but in the US with joint owners, anyone can force the sale if they want to cash out.

Myself, one brother and a sister. I have another brother but I understand my mother doesn't want to include him. If one sibling doesn't want to be part of it we could always buy them out if we want to go that route.

marty998

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Re: Renovate or not in Sydney
« Reply #6 on: January 23, 2016, 06:24:32 AM »
$1400 a week?

Fuck me lord.

Who pays that?

I would tend to agree with the RE on this one... sure most of them are lying scumbags, but lets be honest... people have been paying stupid prices for anything with development or renovation potential lately.

chouchouu

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Re: Renovate or not in Sydney
« Reply #7 on: January 23, 2016, 03:43:08 PM »
$1400 a week?

Fuck me lord.

Who pays that?

I would tend to agree with the RE on this one... sure most of them are lying scumbags, but lets be honest... people have been paying stupid prices for anything with development or renovation potential lately.

370 for the garage business out the back, 380 for the granny flat, 650 for the house, house could actually be rented out for more since its four bedrooms but its in bad need of renovation. I guess it does make sense that anyone with enough money to buy the property would want to renovate to their taste.

deborah

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Re: Renovate or not in Sydney
« Reply #8 on: January 23, 2016, 05:47:51 PM »
I'd agree with the RE. Not from Sydney, but the inner Melbourne market is like that.

my2c+61

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Re: Renovate or not in Sydney
« Reply #9 on: February 25, 2016, 05:32:10 PM »
With the property having a heritage listing it is going to make renovating very complex and expensive.
Get a second opinion from a qualified architect who is familiar with heritage requirements.

OR

Throw it at the auction market targeting renovators and developers.
The reno flip set will go nuts seeing easy $$$$$$$ and bid each other through the roof.

Botany these days is so close to inner Sydney that the market should treat you well.