{"id":1379,"date":"2015-04-26T18:35:31","date_gmt":"2015-04-26T08:35:31","guid":{"rendered":"http:\/\/www.catebakos.com.au\/?p=1379"},"modified":"2015-04-26T20:04:03","modified_gmt":"2015-04-26T10:04:03","slug":"clever-cosmetic-renovations","status":"publish","type":"post","link":"https:\/\/www.catebakos.com.au\/staging\/clever-cosmetic-renovations\/","title":{"rendered":"….Clever Cosmetic Renovations…."},"content":{"rendered":"

Late last year a fabulous client of ours was the successful purchaser of this 1970’s townhouse in Yarraville. Situated near Seddon station, equi-distant between Yarraville village and Seddon’s cafe strip, and offering a great floorplan – this townhouse had a\u00a0lot<\/em> to offer. What it lacked however was modern appeal.<\/p>\n\"1_27<\/a> \"1_27<\/a>\n

We knew our client would\u00a0find a tenant if she\u00a0kept the property as-is. But what could a cosmetic renovation do for her in terms of quality-of-tenant, rental return and capital appreciation? It all came down to purchase price…<\/p>\n

When the hammer fell on $525,000, we were pretty excited.<\/p><\/blockquote>\n

We had\u00a0preserved some of our client’s budget for her proposed\u00a0renovation costs.<\/p>\n

The question about cosmetic renovation is always an interesting one.<\/strong> There are THREE reasons why an investor would be well placed to consider conducting renovations on an investment property:<\/p>\n

1. To bolster up the rental yield<\/p>\n

2. To improve the quality and longevity of the tenant<\/p>\n

3. To increase the capital value of the property by more than the cost of the renovation.<\/p>\n

Many investors get caught out with renovations. They either over-capitalise (put more money into the renovation than the value of the improvement), neglect to calculate the\u00a0total<\/em> cost of the renovation (including holding costs), or they don’t cater to the target tenant with a suitable renovation.<\/p>\n

This investor nailed\u00a0all<\/em> three positive reasons to renovate – and she did it with style.<\/p><\/blockquote>\n

Not only did she increase her anticipated gross rental yield from 3.7% to an actual yield of 4.1%, her property manager signed up a great professional couple, and she arguably added more value to the property’s capital value than the total cost of her renovation and holding costs.<\/p>\n

\"1_27\"1_27
\n<\/a>Tapping into the local target tenant market was a wise decision. Ample storage, a fully functioning and appealing kitchen, new flooring, a redesigned stairway railing and a fabulous bathroom were the significant items which made a stunning difference. Great carpet selection, clever lighting and simple landscaping ensured that this once-daggy 70’s townhouse suddenly had modern appeal for professional tenants who valued this great locale.
\n<\/a><\/p>\n\"1_27<\/a>\n\"1_27<\/a>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

Running a great spreadsheet and managing costs is one thing. But relating well to tradespeople, being fast to offer compromise, and\u00a0always<\/em> remaining pragmatic is what I enjoyed most about working with this wonderful investor.<\/p>\n

Her property will exhibit growth and deliver attractive rental returns at today’s rental return of $475pw, but most of all it will give her peace of mind that she’s maximised it’s value with cost-effective improvements.<\/p>\n

For under $600,000, this project is one we’re proud to say we played a part in.<\/p><\/blockquote>\n

 <\/p>\n

Photos sourced from REA and Googlemaps<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Late last year a fabulous client of ours was the successful purchaser of this 1970’s townhouse in Yarraville. Situated near Seddon station, equi-distant between Yarraville village and Seddon’s cafe strip, and offering a great floorplan – this townhouse had a\u00a0lot to offer. What it lacked however was modern appeal. We knew our client would\u00a0find a… Read more »<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1379","post","type-post","status-publish","format-standard","hentry","category-sundayblog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/posts\/1379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/comments?post=1379"}],"version-history":[{"count":12,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/posts\/1379\/revisions"}],"predecessor-version":[{"id":1399,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/posts\/1379\/revisions\/1399"}],"wp:attachment":[{"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/media?parent=1379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/categories?post=1379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.catebakos.com.au\/staging\/wp-json\/wp\/v2\/tags?post=1379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}