Wellington ?? Buyers - Our Open Home Numbers Are Up - It's Time to Get Serious!

Buying Well in Today’s Market?

You’ve probably heard these sayings in property, whether listening to others or on TV:

• ‘We bought the worst house in the best street…’
• ‘The 3 most important things in real estate are first location, second location third…location!’
• ‘It has great potential…’

These nuggets of property wisdom are in the cultural speak as they’re handed down in the stories of people who have done well in their real estate forays.

Buying and holding property for a long time can make you money.? House prices in New Zealand have risen on average by just over 6.5% per year since 1992, with Auckland gaining 7% and the rest of the country 6.2%*.? And at times depending on when the measure is taken, values have doubled over a decade.

But it’s often said that ‘where you make your money in real estate is on the way in’ , i.e. when you buy.? That means looking for properties which have extra value in them which is not yet unlocked or reflected in the price.

QUICK TIPS!

If you are looking to buy soon consider:

Looking for houses you can cosmetically improve yourself

I always remember showing a property in a good street that was very dated – blue carpet…probably 40 years old, flowery wallpaper, old kitchen and bathroom fittings.? It had been in a family for over 70 years. Original was the right word…a time machine was another.? It had what they call in advertising…’potential’.

A lot of buyers came through and many had an allergic reaction to the visuals and just didn’t want to do any work, and some of those despite this didn’t have the budget to buy the done-up version of the same thing.? I explained to several that to purchase the property done-up would cost far more on the purchase price than the cost to do the cosmetic improvements themselves overtime…as much as an extra $100k again.?

People can’t always easily imagine what the immediate effect is of lifting carpet, neutralising walls and/or old kitchen cabinetry and changing curtains or light fittings.? It’s massive!

The young family that bought the place were at the top of their budget for getting a loan and moved into a solid but tired place in a great location.? Over a couple of years doing most things themselves and on the cheap they:

·?????? Lifted the carpets and sanded floors

·?????? Removed an internal wall (non-load bearing) opening the kitchen and living area up

·?????? Added new carpet in bedrooms

·?????? Dropped in new low-cost kitchen benches with cupboards

·?????? Added a kitchen splashback

·?????? Replaced bathroom fittings

·?????? Redecorated themselves

·?????? Replaced drapes

·?????? Repainted the exterior

·?????? Replaced part of the fencing

·?????? Added a small deck

The house looked amazing, was worth a lot more in the market than the changes, and the majority of it they had done themselves and cheaply.

If you’ve not been on YouTube go and check out the ‘how to’ videos on almost anything DIY.? This information was never there years ago when I bought a house.? You’d probably have to drag your dad or grandad into it…though that’s probably still a good idea ?.

Also look for houses where changes can easily create extra rooms or living spaces

We’ve seen some great room conversions over the years, here’s a just sampler:

·?????? Extra living room made into a bedroom, to go from 3 bedrooms to 4 bedrooms without having to move

·?????? Huge rumpus converted to two rooms with a partition wall

·?????? Conservatory added over an existing deck to extend living space

·?????? Double garage converted to single garage plus bedroom or rumpus

·?????? In more recent years, adding sleepouts, hobby rooms or offices being dropped onto the sections

·?????? Carport added and garage relined and false floor added to repurposed to the garage to a home gym or office

·?????? Basement rooms developed into man caves or media rooms

·?????? Decks added for missing outdoor living

On the market, we’ve noticed a pick-up in buyer interest (especially at our open homes) over the last couple of weeks, and this was before this week’s OCR cut by the Reserve Bank.?

If you’re thinking about the Spring market and making a change before Christmas now is the time to start with advice and a plan.? Start with getting a trusted updated value on your property.? No fuss, no sales pitch, just service?(call 027 518 0008 or email?[email protected]).?