In my effort to remain vibrant and useful, apart from being a Valuer, Salesperson, Property Manager and a good guy to all and sundry, I have now become a Project Manager and I’m loving it.
Six months ago I must have scared the daylights out of some of our clients when I declared that 40-year-old flats and units in original condition ran the risk of being untenantable and unsaleable. Well, the response has been furious and I expect it will continue for some time. We can report that our efforts in upgrading dated properties is producing fabulous results, far beyond our expectations.
Over the last 30 years of running a large property management division, Jackman & Treloar has been able to bring together a team of people covering all aspects of the building industry to maintain and manage our Rent Roll. Some of our trades have been associated with Jackman & Treloar for decades but the current team is the best we have ever put together and it is starting to pay serious dividends.
Here are 3 case studies that you can all look up on realestate.com to see the end result of a good team effort.
1/27 Rose Terrace, Wayville. A townhouse built in 1976 with the original fitout and a Unit Entitlement of a front yard that was undeveloped, insecure and virtually useless. We spent just short of $22,000 in ripping out the old hedge, digging out rubbish and levelling off the yard and constructing a new fence and landscaping. Internally we replaced the kitchen, bathroom vanity, painted throughout including the tiles in the bathroom. I valued the property at $380 – $385,000 on an “as is” basis. Post upgrade we sold the property for $425,000. This meant that we doubled the upgrade cost, enhanced the marketability and spent less time on the market.
The second was a 2 storey townhouse at 3/305 Portrush Road, Norwood. Built in 1978 and in original condition. A new kitchen, updated bathroom, painting throughout and minor repairs. This property was assessed at $370 – $375,000 “as is” and after spending just over $12,000 we sold it for $400,000 after the first weekend.
The third example is a single level 2 bedroom unit at 4/95 Sydney Street, Glenunga. Upgrade included painting, new kitchen, updated bathroom and new carpets. Originally assessed at $385,000, after spending $15,000 we have confirmed interest above $400,000.
There’s a fourth one that should be finished prior to Christmas at 5/32 Thomas Street, Unley. This is a ground floor flat in a 2 storey group built in the mid-1960s with everything original and falling apart. We will spend approximately $15,000 to include new carpets as well as painting, kitchen and bathroom plus blinds and flyscreens and all the normal things that break down after 50 years. Watch for this on 17th December to see the spectacular transformation.
The team that I have put together which includes, plumbers, electricians, painters, general repairs, cabinetmakers and carpet layers are in and out of these places in 2-3 weeks. In every instance thus far we have more than doubled the cost of the upgrade. “The score is on the board”. If we don’t sell for a fair price, then the fall-back position is an updated unit that is going to command a better quality tenant paying a higher rental and the benefits of the upgrade in depreciation and write offs are yours to enjoy as a continuing landlord. I’m seriously excited about this and I would recommend that if you that have a property that may benefit from such an upgrade then a phone call will get a quick response.
Expect another blog before Xmas.