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

The Courier-Mail - Home - - FRONT PAGE - EMILY BLACK

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.

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