Tips for renovating established dwellings in Lismore/Casino/Kyogle: HTW residential
The general sales activity and enquiry in Lismore, Richmond Valley and Kyogle areas have remained quiet, however, there does not seem to be any sense of a catastrophic drop in prices expected, according to the latest Herron Todd White (HTW) residential report.
The valuation firm suggest in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade. This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.
"Following the COVID-19 restrictions in place from early March 2020, the question frequently asked is “How will the property market react during and after COVID-19?”
"Nothing much has changed since our foray into this loaded question last month, apart from the fact that at least some restrictions are slowly being lifted," the valuation firm said.
"Providing locals are able to get back to work or retain employment and regain some sense of normality, a few brave souls have hinted at a launching pad for the local property market to rise!
"Think about it; the unprecedented low interest rates are unlikely to rise quickly due to a willingness by government and lenders alike to encourage the country to get going again...and this could be a scenario for some time yet," the valuation firm added.
If a potential property investor, first home buyer or upgrader has all the boxes ticked for the lender, today could be a very good time to buy, the report noted.
Rental accommodation queries remain relatively strong.
With interest rates now at record low levels, there are a number of opportunities some may not have considered outside of the desire to buy a new build.
Renovation could potentially feature in the minds of investors, developers, first home buyers and even upgraders. Borrow a few dollars to put some new life back into the tired and dated home.
The report suggests the cost is naturally going to be a key ingredient in the decision making as well as the end value of the final product.
"The option to do this in the Lismore region is to find an established, three-bedroom, two-bathroom dwelling within the $300,000 to $400,000 price bracket," the valuation firm said.
For, Casino and Kyogle, a similar real estate product would be in the region of $250,000 to $350,000.
A three bedroom house in Casino was sold for $295,000 in April.
The home at 15 Beith Street (pictured below) comes with L-shaped lounge and dining, modern kitchen, home office and garden shed.
It is located close to the Golf Course.
"There is no particular area of Lismore, Casino or Kyogle that has the upper hand on renovation activity.... diamonds in the rough can be found anywhere if you look hard enough," the valuation firm said.
"Renovating an established dwelling rather than commencing a new build can achieve a lot....if done properly."
A budget of less than $100,000 could provide an updated kitchen, bathroom, ensuite, general interior and exterior painting and floor coverings.
"Provided the renovation work emphasises the positive features that are already there OR introduces new features that the market place desires (do your homework for the areas you wish to invest or live in as each locality is different), then the cost to added value ratio could yield some reasonable capital gain....and nicer digs to reside in!" the valuation firm said.
However, the trick is not to over capitalise.
A good option is to seek out those large homes with only two bedrooms and a large living space, the report noted.
Cut the living room to provide a third bedroom and the rental would naturally improve to reflect that of a three-bedroom home.
Older style, turn of the century homes are quite popular for those with an interest in timber and the old world appeal.
One good example is a property at 62 Cathcart Street, Girards Hill (pictured below), out of the flood area and an easy walk into the CBD.
The property is a beautiful, circa 1880s timber home with expansive verandahs and fully renovated interior that maintains the heritage character set amongst well established landscaping, trees and mature gardens.
It sold for $880,000 in mid 2019, the price being a record for the suburb of Girards Hill in recent years.
However, the cost to renovate and maintain such prized, older-style, weatherboard homes needs to be strictly monitored as one could easily get carried away.
"In summary, from a conservative perspective, the purchase of an established house with opportunities to renovate would be a more viable option and purposeful stepping stone to something newer in the future without the millstone of large debt around the neck.
"There are land and house packages available today which are competitively priced but are still above the expected price for an established dwelling of average to moderate appeal.
"Besides, the established house does provide the opportunity for the owner to put their stamp of identity on the renovation project whereas a house and land package is simply that - what you see is what you get and any subtle changes to the design could bring on a wallet attack."