Many a home has been described as a renovator’s delight, but is it a good idea to renovate an ugly duckling?
Andrew Winter and Neale Whitaker hosts of Love It Or List It Austalia, take a look at a historic terrace in Sydney’s inner west to see if it should be sold or renovated.
Are the bones good?
Located in Camperdown, this two-bedroom terrace was purchased by the current owners in 2014. But the home’s layout hasn’t changed much over the years.
“The problem with old terraces is that they don’t relate to the way we live now and they certainly don’t relate to the way we live in Australia,” says Whitaker.
When the owners bought this house for $930,000, the suburbs median price was $990,000.
That median price for a two-bedroom home is now $1,240,000 – so is a large-scale renovation worth it?
“If the market’s good, they could sell it now and cash in,” says Winter.
Selling v renovating: the likely returns
According to Winter’s calculations, if the owners list this home for sale now and achieve a price just over that suburb median they could make $340,000.
“The market’s booming as far as I’m concerned and it’s a great time to sell. To renovate a terrace like this is just so, so tricky,” says Winter.
But if the owners followed Whitaker’s advice and transformed the home by opening up the living areas and adding two bedrooms, could it significantly increase the value of the home?
“It looks tiny because of all the clutter, you’ve got to clear everything out of there and just look at the bones that you are working with. I can see some great features, we’ve got high ceilings and beautiful floorboards. There is stuff to work with,” Whitaker says.
Whitaker estimates that a large-scale renovation for this home would cost around $500,000, but here’s a look at how much extra that could add to the now four-bedroom property’s future sale price:
A renovation could really pay off, with time. Picture: realestate.com.au
Winter says this ugly duckling would cost too much to transform and the owners should list it. Let the next set of occupants tackle it.
But Whitaker says the owners should renovate the property over time and enjoy a modernised home with heritage features. Later on, the home will be worth even more thanks to the large-scale transformation.
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