Rennovate or sell?

devastar

Hello,

I inherited a house from my dad when he passed away and I'm looking for some advice. We had a lot of trouble with the tenants and eventually had to evict them. They left the house with a huge amount of damage and the house needs new bathrooms, kitchen, doors, carpets, windows, boiler, oil tank, full decoration inside and landscaping outside. I've worked with a builder to estimate the cost of repairs and renovations and it's working out at €75,000. I'm am architect and I had planned on doing some work myself to bring the renovation costs down to €45,000 but it would be a two month full time job which I can only do when an insurance claim is settled which could take months or even next year. It was broken into last weekend and they stole the water pump, the water tank and some copper piping as well and breaking doors and a window. My question is, should I just sell it as it is now before something worse happens to it or wait to do the renovation works and then sell it. It was valued in Sept 2013 at €180,000 as is or €280,000 done up. It's in South county Dublin too. Any advice would be much appreciated.

johnnyskeleton

Why not get a more up to date valuation and work out the numbers from there.

Otherwise its a straightforward risk/reward analysis - you would be risking c. 45-75k with the hope of getting a 100k reward by way of increased value. But it could also be the case that the repairs are much more expensive and the value of the house increases by less than the cost of the repairs.

You might also have to conisder the hassle of it as well.

zl1whqvjs75cdy

Be careful of valuations at the moment. No one really really knows what way the market is going to move with the new mortgage restrictions, that includes valuers.

BabySlam

Put it up for sale - see what offers come in.........if you are not happy with the offers, you at least have an alternative.

Idbatterim

for two months could do both jobs? To save that amount of money for a few weeks hard work would be worth it IMO... Have you gotten at least 3 quotes for the work? Also prices have risen significantly since September 2013...

antoinolachtnai

If I were you, I would sell it. You are getting yourself involved in the business of property development and if it isn't your area or interest, and you don't have immediate access to funds, it is probably not worth the hassle. As you rightly notice, time is not on your side. The longer you leave the house unoccupied, the more chance that something bad will happen.

devastar

Thanks for all the advice! I just spoke to the agent who valued it in 2013 and he says that it is worth about €40,000 more now but due to restrictions on the site that it probably wouldn't be worth putting the money as the most it would be €300,000. So I think I'm going to put it on the market as is and see what happens. Thanks again!

handlemaster

For a house like that allsops might be the best.

devastar

Update: Thanks everyone for the advice. I put the house on the market in June, it sold in 10 days at double the asking price!!! We're over the moon! We're still wading though the conveyancing but fingers crossed it's almost there.

Millem

Congrats

April 73

Great result.