RENOVATE VS REBUILD
DO YOU RENOVATE OR DO YOU KNOCK DOWN AND REBUILD? OBVIOUS ISSUES SUCH AS BUDGET AND TIME ARISE – HOWEVER, THERE ARE SOME BIGGER CONCERNS AT PLAY, AND THERE ARE SOME REAL QUESTIONS TO ASK WHEN MAKING THIS MAJOR DECISION
When it comes to weighing up the pros and cons of whether to renovate or rebuild – it’s important to do your numbers first.
In the case of Hot Property Buyers Agency senior buyers agent Zoran Solano, that’s exactly what his team did when they bought a Stafford home for a client in 2012.
“The journey to this project started back in 2012, when our team purchased this beautiful 637sq m block of prime elevated land,” Mr Solano said.
“Back then the property had a humble three-bedroom, one-bathroom post-war home on it which our buyer’s agent team secured for around the mid-$400s. The property was then rented out for around $410 per week – that’s around 4.58 per cent gross rental return.”
But with all older homes they require maintenance, and Mr Solano said the rental demand and return slipped, so they decided to invest back into it earlier this year.
“We looked at the different options available, such as knock down-new build, raise and build under, extend and renovate,” he said.
Mr Solano said given the rental demand in Stafford, it was decided on a five-bedroom home, but renovation costs were too high.
“Ultimately we said we’ll knock this building down and start fresh, that way we have a builder’s warranty and the tax depreciation and overall the maintenance would be a lot less,” he said. “After considering the market demographics, as well as the needs and wants of prospective tenants, we designed this house from the ground up to cater for the gentrifying market.’’ He said the builder’s warranty was for six and a half years, with a longer 20-year structural warranty.
The two-storey 289sq m home now has four bedrooms, plus a media room (or fifth bedroom), a double lockup garage and two living zones.
A financial decision was taken by the owners of this pre-war Stafford property (right) to demolish and rebuild (main) for the rental market.