Home renovations in Valley will get your money back and more
CLARENCE Valley property buyer/renovators should be able get a good return on their investment says a leading real estate analyst.
In its October issue of The Month in Review, Herron Todd White stated a combination of property age, quality and price was good news for investors.
"As a consequence of the upward trend in the Clarence Valley property market, consumer confidence remains high,” the report said.
"This is particularly evident in established localities where renovation and extension projects are prominent.”
It said due to the age of dwellings in Maclean and Grafton (where the majority of homes were built between 1920 and 1960), renovation projects provided good value.
"The relatively low median values in these areas compared to Yamba and other nearby beachside or major localities ensures that purchasers (whether investors or intending owner-occupiers) are able to purchase existing dwellings in fair condition and expand or improve dwellings,” said the report.
"Essentially, with ageing and original dwellings freely available on the market, purchasers are snapping up these opportunities.
"This is evidenced by the extremely limited stock available under $350,000 or $400,000, i.e. properties in fair condition are so highly sought after that they are rarely put to market and when they are, there is such a broad interest or buyer base that often bidding wars or the like ensue.”
Real estate agent Dave Dart, the principal at Elders Grafton, agreed but said there was also plenty of value in lower-priced properties.
"You can get something for $250,000, do up the kitchen and bathroom, slap a coat of paint on it and get $300,000-plus for it,” he said.
"Basically you want to get back twice that you spent on it.”
He said even at these prices, the buildings were physically sound. "Forty, 50, 60 years ago and longer, (the use of) hardwood frames gave these homes a really solid basic structure,” he said.
The report noted that while the Clarence Valley property market received a boost from the Pacific Highway upgrade and the new Grafton jail and remains supported by the school and retail facilities that have long driven construction, it was likely these trends would continue into the near future.