Top 5 tips to add value to Sydney Property
Adding value to a property can be one of the best ways to grow your investment whether it is something you live in or rent out. Don’t be fooled by the shiny and new!
There are many ways to add to a property’s value. You just need to have vision!
Add another bedroom
Adding another bedroom into a property is not always easy and it can be harder to actually find the property. The most cost effective way to do this is merely by adding another wall that will somehow create another room. This can be easier said than done but when done it can add $100,000’s of dollars to the property value.
We had a client called Paul that was looking for a two bedroom apartment for up to $850,000 in the Eastern Suburbs at the end of 2014 – impossible today but no small task back then either. Affordability was in areas like Kensington and Randwick, which were not bad but I wanted better for my client. You see we had bought for his mum and she lived in Darlinghurst so she wanted it to be somewhere close to her, not too close though.
We were actually looking for another client Paula at the time and came across a 1 bedroom that was 82 sqm the client that I showed had no vision for the creation or budget for that matter, so with her permission, I showed this young man. I knew the building well and what I realised is that you could actually add value to the property by adding another bedroom. So we had a structural engineer in and made sure we could do the things we needed to do to create the value.
It was quite a full-on under – taking, taking on strata and council is not always easy but we got there. And our client became the proud owner of a modern 2 bedroom apartment in the premium suburb of Paddington for approx. $850,000. One above sold for $1,100,000 just months later, that was not as a nice renovation but exactly the same floor plan.
In today’s market the property is worth $1,300,000, maybe more. From an original purchase price of $767,000 this is what I call capitalizing on potential.
Gut it and renovate
Gut and renovate simply means to take out all existing carpets, wall coverings, kitchens, bathrooms and wardrobes to create a more user-friendly modern space, some of my time poor clients can’t see past a yellow wall-paper and busy carpet – but I love these buys! We had a lovely couple Gemma and Mike they had been looking in Manly for quite some time before they came to us. We ended up buying for them within 10-minute walk to the Ferry which was perfect. This house though needed to be gutted.
It was owned by an elderly gentleman and had nothing done to it within his ownership. So I had a designer go through the property and we added storage and an ensuite to the bedrooms and made the kitchen modern.
They absolutely love living there and we have made a better sense of the floorplan.
Left to their own devices they would not have seen this and would still be looking today as a 10 min walk to the Manly ferry is highly sought after.
Change the floor plan
When floorplans flow well and capitalise on the living space’s aspect and view in a house or apartment they not only have a fabulous feel about them but they will command premium prices. However when bedrooms sit where the hero view is or a bathroom interrupts flow to the garden this can impede the property’s value.
Floor plans can be disastrous for all sorts of reasons :-
- The bedrooms may be in the wrong position where a great view is
- There is no flow to outside
- The entrance is in an unusual spot
- There is not enough bathrooms
When adjusting a floor plan it is essential to think of two things 1. What is practical and 2. What is going to serve the space of the house or apartment the best. Think light, views & ease of living
I had a lovely couple Brett & Alison that had been looking awhile in the Inner West. They had actually passed a house up that looked really unfortunate as the paint colour was wrong but the floorplan was also not right either. It was currently a three bedroom, one bathroom house and they had two little girls so looking into the future they needed, four bedrooms and two bathrooms.
We created another bathroom at the front of the house between the master bedroom and another bedroom. It also had a bathroom at the back of the property that was created bigger. The house was gutted and some beautiful additions were made. They now had a 4 bedroom, two bathroom house in a with a flow in a suburb they love and the price of their home has gone through the roof.
Paint it a different colour
When I take a client through a property and they exclaim that they hate the house it is an interesting reaction. Sometimes this reaction can be around the color of the paint. In this instance my line back to them is paint is the easiest thing to change about a property. Or buy the property for the things you can change not the things you can’t. Once I was selling a property in Balmain the owners of the Nicky & Peter were a fabulous bright fun loving couple that loved Mexico and their house reflected this. The house was painted a blue, yellow and pink inline with their Mexican tastes. This house even got on the front page of Domain and and was definitely colourful. The couple that ended up buying the house loved the house but not the colour. They immediately painted the house a white throughout and the front was also painted a very attractive colour. Instantly this added value to the property and when they went to sell it sold incredibly well.
Adding storage to a property can be done in many ways. Storage can be added from under the stairs, in rooms with built-ins in crevices that are not filled, attic spaces, under the house or beside the house. Adding storage to a property can also increase it’s value.
When looking at property and looking for potential to add value. The first thing you must look at is the floorplan by doing this rather than the photos you get a helicopter view of what is going on and what can be changed. If you need help finding a property to add value to please call us today. Brooke Flint 0425 221 226.