house renovation

brianb10

I am in negative equity to the tune of approx €150,000 from a one bed apartment.
I got the go ahead from the bank to get a bigger house where i can transter the NE once the 1 bed is sold.
My plan is to buy a house that is in need of renovation with the hope that after the renovation the house is worth more and the loss from NE is reduced slightly.
I know this is like asking how long is a piece of string but suppose you spend 70,000 renovating a house, how much on average does would the house increase in value?

Poor Uncle Tom

You will need a lot more information than that. The state of the existing house, the size of the house, the size of the site, the location, etc., will all have a bearing on the value.

brianb10

Poor Uncle Tom wrote: »

You will need a lot more information than that. The state of the existing house, the size of the house, the size of the site, the location, etc., will all have a bearing on the value.

thb i haven't even picked a house yet but I have gotten the go ahead by the bank to carry my NE forward and buy a bigger house to the value of €300,000 and will therefore be paying bac a mortgage of 430,000 (after deposit)
So I'm thinking if I buy a house for say 230,000 which requires 70,000 renovations who much typically can you expect to add in value to the house?
I know its such a vague question but just looking for ballpark figures or examples of how people have added value like this!

Ddad

I don't mean to burst your bubble Brianb10 but I'd say you have a job there.

During the property boom anybody that did this sort of work generally made a lot of their profit from the general rise in property.

IMHO the best way you are going to get value for money in equity terms is to do the simple stuff that'll make the house more comfortable and presentable.

You can insulate the attic in a house and pump the cavity (provided it is suitable) for a few thousand and really inprove the BER. Painting and renewing floors, bathrooms and kitchens can be done in an average house under the 20k mark but gives the house a new feel. Adding a good quality planning exempt (costs) extension might improve your margin but that very much depends on a whole host of factors; location, competition in the market, wow factor : the list goes on. You could probably renew a garden for a budget in the thousands provided you were willing to do all of the work yourself and you kept things simple.

Then there is the stuff you should and will want to do if you are to live there but might not necessarily generate a return. For instance a new boiler. A stove in the fireplace. An upgraded utility room or upgraded plumbing and electrics.

We installed a new boiler a year or so before we sold. It didn't make a bit of difference to the price but it was a plus for the potential purchasers. Our garden was much larger and was lanscaped (small difference to the price).

So to sum up my rambling reply. If it's visible or you can do it yourself you will probably see some return; if it isn't i.e. a rewire/replumb it'll be big money and hard to get your money back.

huskerdu

I agree with Ddad.
Also, make sure that the house and the location are the type that will retain their value in the future, by appealing
to the biggest market - families with growing kids or kids on the way

That means a 3/4 bed house with a garden in an area that has schools and other facilities that families like.

Think of your potential buyer when doing renovation

Very few people will pay more for a house with expensive tiles in the bathroom, but a house with an en-suite and an downstairs loo is more appealing than one without.