# Forum More Stuff Go to Whoa!  Summary of value-add for DYI renos

## namtrak

Reading through some of the great Go to Whoas in here has me thinking maybe we could start collating the value add and see if there is any or we all just end up doing it for the love. 
Maybe, if you are so inclined people could complete a little dot point list.  Happy to go first. *
Original value of property: $140,000
Date of commencement: March 2005
Date of completion: Feb 2008
Cost of renovations: $140,000
Final value of property: $340,000
Major Inclusions: New kitchen, ensuite, deck, 2 bedrooms, 60 sqm living area, landscaping 
Value add/minus: +$60,000*   
Of course these doesn't take into account all the subjective stuff, interest payments, fights and squabbles etc - but it may help quantify the value of renovations?

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## jago

Original value of property:* $530,000 I did not purchase it for this price, rather this was the bank valuation for mortgage. * Date of commencement:* June 2009* Date of completion:* tbc... all things being well end of 2011 .* Cost of renovations*: $150 -190k allowing for price rises* Final value of property:* who knows;  value is in the wallet of the beholder! Current price indications $750k + but if Mike Meyers is out there and would like to offer me "One Million Dollars"  
to include*  *Additional 45m2 of new house increasing house to 300m2 internal, * *New roof, gutters and eaves etc.* *New cladding**New brick rendered walls,* *New windows and doors, * *Open plan living, * *Re-wired, New CU with 22 RCD circuits, all new wifi controlled lights, 80+ new GPO's* *Re-plumbed, including bottled gas and eventully evactuated tube hot water**Hardwired Cat6 and wifi'd to hell, server room * *New Gym* *Outdoor kitchen, pizza oven (I've been inspired)* *Reconditioned pool**Landscaping*
Actually just a whole new house...only 4 x 1200 brick piers will remain from the original house. * 
Value add/minus: 
It will be in the positive but we have no plans to ever sell, so we won't know what value I have added by doing the work compared to just leaving the house alone and seeing what the market would rise by, but thats No fun. *

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## zacnelson

NAmtrak, was the $340k the price you sold your house for or did you get a real estate agent to do a valuation? 
It's an interesting question - I regularly watch `Property Ladder' on the lifestyle channel on Foxtel, and Sarah Beeny from time to time points out that certain investors who make a good return would have made that purely from a rising market without touching the property at all. 
Did you have any rent costs during your renovation?  If so did you take that into account?  I've been working on my house for 2 years and one way I have added value is by organising my work flow (and my floor plan layout etc) in such a way to enable my family to continue living in the house the entire time.  It isn't easy (we are currently sleeping in the living room) but it takes some of the time pressure off.

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## namtrak

We lived in the house while we did the reno, so no extra costs. 
The valuation was a bank valuation we had done to extend the mortgage to buy another place. 
And as for value just based on a rising market, I think we would be looking at somewhere around $180,000 (max) based on similar sales around the area.

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## jago

ZacNelson 
Its probably the wrong place for me to have a true rant but Real agents just guess based on what they think the market will tolerate (my brother ran 8000 agents worldwide) trust me they dont know! I've some really bad stories of Vic, NSW SA agents short selling to get the commision quickly and also looking for the mug buyer and overpricing.  
Its only worth what a bank will give a mortgage on so if your'e developing you should use a valuer at the end of the development and then track the local market (probably no more than 5 streets area) from what the valuation comes in at.  
Ps I do like my brother!

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## zacnelson

That's interesting about bank valuations, I'll definitely have to look into that when I'm finished (in 5 years time no doubt!!)

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## jago

> That's interesting about bank valuations, I'll definitely have to look into that when I'm finished (in 5 years time no doubt!!)

  I dont advertise this but I was a Mortagage broker in Melbourne for a number of years when I came to Australia... and a lot of people would try and refinance based on what real estate agents had told them the value was, I would warn them this didn't always stack up. Then they would go through the valuation process and it would come up short so  who's right !  :No:  
To securitise a property they (lender) want to be able to offload the property quickly (no more than 90 day) so they price it competitvley... you the vendor have an emotional attachment along with the financial so you demand top dollar, somewhere between is the true value.  
It was drummed into me that the true value of a Auction property is not the winning bid but the bid that came 2nd. 
Sorry if I sound like I sound like I'm preaching. 
I'm sure you will finish before me  :2thumbsup:

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## Bedford

*Original value of property: $90,000
Date of commencement: June  2009
Date of completion: Jan 2010
Cost of  renovations: $30,000
Final value of property: $185,000
Major Inclusions: Added two  bedrooms and a loungeroom 
Value add/minus: About  65k and increased the rent from $90 pw to $190  pw. *  This  was a single bedroom house of about 50 sqm and we added another 50  to it with 2 bedrooms and a lounge.  
Included in that cost was the DA  approval for a second house at the rear.

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## jago

Thats great financial sense for an investment 33% of purchase price to more than double the income and increase it's capital worth leaving somebody else to completely pay the mortgage. People get worried about over capitalizing ... Work the figures back they don't lie!

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