Rebuild vs As-Is

[Jacmar]

Like to consult all the property guru on this forum. Suppose if you have a very old(say >40yrs old ) house(terrace) or a condo and you want to sell it, is it better to sell it as is or do a major renovation(almost brand new everything). Which would fetch a better price after accounting for the cost of renovation(assuming modest reno and nothing fancy).

Anybody with experience to share.Tks

[NTL]

Like to consult all the property guru on this forum. Suppose if you have a very old(say >40yrs old ) house(terrace) or a condo and you want to sell it, is it better to sell it as is or do a major renovation(almost brand new everything). Which would fetch a better price after accounting for the cost of renovation(assuming modest reno and nothing fancy).

Anybody with experience to share.Tks

While I don't have the actual experience, what I know is doing some reno will be able to fetch a better price. Reason is it will look more pleasing to potential buyers' eyes, and so they are more willing to put up a higher offer.

Imagine you walk into a bad condition place, will you be offering a good price for it?

[koh_52]

Like to consult all the property guru on this forum. Suppose if you have a very old(say >40yrs old ) house(terrace) or a condo and you want to sell it, is it better to sell it as is or do a major renovation(almost brand new everything). Which would fetch a better price after accounting for the cost of renovation(assuming modest reno and nothing fancy).

Anybody with experience to share.Tks

While I don't have the actual experience, what I know is doing some reno will be able to fetch a better price. Reason is it will look more pleasing to potential buyers' eyes, and so they are more willing to put up a higher offer.

Imagine you walk into a bad condition place, will you be offering a good price for it?

For me, I buy location and at low ( $PSF) price.

Reno not important to me, put in 20k swee swee liao...1 lay paint, replace new lighting make it brighter, hang some picture or curtains, etc....

this is a good advice tot by my ppty sifu, think about it.

[CityFarmer]

Like to consult all the property guru on this forum. Suppose if you have a very old(say >40yrs old ) house(terrace) or a condo and you want to sell it, is it better to sell it as is or do a major renovation(almost brand new everything). Which would fetch a better price after accounting for the cost of renovation(assuming modest reno and nothing fancy).

Anybody with experience to share.Tks

Base on mostly other's guru experience that i learned, it is always advisable and profitable to make property presentable before buyer's visits. It worth the money most of the time.

Presentable can be a small reno e.g. new coat of paint, clean-up, simple fixing, new curtain etc.

[Jacmar]

Base on mostly other's guru experience that i learned, it is always advisable and profitable to make property presentable before buyer's visits. It worth the money most of the time.

Presentable can be a small reno e.g. new coat of paint, clean-up, simple fixing, new curtain etc.

This place I am talking about is severely run down such that it is better for some one to re-build then to just put in a new coat of paint. example many pipes and electrical system need by-pass and needs to be dug out, tiles falling and cracked, roof leaking,wooden doors rotted, iron grills rusted etc...you get the picture.

[etan]

The way you describe the house, I think it’s beyond living conditions, I guess it must have been left vacant for quite many years, or the owners never bother to maintain it through the years.

To sell off in its present state would save you a lot of headaches, just get the money off the table, and focus on what to do with the new found money!

The other option, if you are familiar with construction matters, maybe it’s worth your while to try your hand at building a new house at the land’s maximum plot ratio.
You really get some kind of satisfaction when the whole thing is completed, you see your baby take shape, but you must be able to afford the time and money, and also know what kind of house you want to rebuild.

There is market rate for selling land alone, or selling a brand new house with freehold title.

I have no experience in undertaking above, just thinking out loud only… keke

[NTL]

Base on mostly other's guru experience that i learned, it is always advisable and profitable to make property presentable before buyer's visits. It worth the money most of the time.

Presentable can be a small reno e.g. new coat of paint, clean-up, simple fixing, new curtain etc.

This place I am talking about is severely run down such that it is better for some one to re-build then to just put in a new coat of paint. example many pipes and electrical system need by-pass and needs to be dug out, tiles falling and cracked, roof leaking,wooden doors rotted, iron grills rusted etc...you get the picture.

Let me share a personal experience around 4yrs back. I happen to found this terrace house selling around $750k then. Cheaper than other properties selling in that area by close to $200k. It was in quite a bad shape from the agent's description. I wanted to take a look but it was sold before I got a chance. Some months later, I noticed that the same unit, based on postal code, is on sale again! Fully renovated, selling at above $1M! It was sold off eventally.

From my conversations with agents, people like to use cpf, max out loan, and don't like using cash. Say, without considering all taxes or fees, I bought the $750k unit, spend $100k reno, I will need to take out $150k cpf + $100k cash. If I bought unit after reno for $1M, I need to take out $200k cpf. The latter sound actually like a more popular choice.

Of coz, the owner will need to have the cash to do the reno himself to gain from it.

What you think?

[KopiKat]

Base on mostly other's guru experience that i learned, it is always advisable and profitable to make property presentable before buyer's visits. It worth the money most of the time.

Presentable can be a small reno e.g. new coat of paint, clean-up, simple fixing, new curtain etc.

This place I am talking about is severely run down such that it is better for some one to re-build then to just put in a new coat of paint. example many pipes and electrical system need by-pass and needs to be dug out, tiles falling and cracked, roof leaking,wooden doors rotted, iron grills rusted etc...you get the picture.

There are people who actually look for such run-down properties so that they can tear it down (or if conservation shop houses, do major makeover) to rebuild.

My following comments are based on a very very preliminary study I did long ago after talking to a contractor who happened to be on a same group tour and then following up (after the tour), talking to an architect... Will likely contain many inaccuracies but ought to be useful to get a general picture if you plan to DIY...

The experienced ones (to save costs) will engage a freelance architect to create a design either based on their inputs or they can leave it to the architect to decide. The final drawings need to be submitted for approval (BCA?). Need to be signed by a qualified Architect & Structural Engineer. Next, you'll need to engage a Contractor who'll of course engage sub-contractors for the different specialised jobs.

I guess you' have to be very hands on (profits will be lower if you out-source everything) from design conceptualisation (the house, flooring, windows, aircon, lightings, plumbing,..) to completion. Very likely, have to treat it like a Project Management, looking into schedule, Cash Flow,...

It should be worthwhile but you need to enjoy the whole process...

PS. IMO, just go ahead and talk to a few architects (contractors may not give very a accurate picture especially pertaining to cost and timeline..) and you ought to be able to get a better picture of the process and costs.

[paullow]

imo,
if u r not in need of money, just hold onto it. i recall one of my old school mate, who is koh boon hwee classmate, i met him for lunch a couple of months ago. i asked him what is he going to do with his plots of land at st patrick rd. he n his brother owns 6plots of land there, maybe all in all 100k sf. his reply was that i am single n not married. i am not in need of money. far east can offer me all they want. i am not selling.
and so he meant what he said. all these years offers came n went. he's still happy living in one of the plots with his quite run down nostalgic feeling bungalow.
i felt transformed back to the 60's suddenly as i sipped coffee in his house at his kind invitation some time back.
so i guess the advice is really what's ur comfort level. do u really need to cash out? if not, keep it. it will appreciate with time if it is freehold. ur future generation can enjoy it!

[CityFarmer]

Base on mostly other's guru experience that i learned, it is always advisable and profitable to make property presentable before buyer's visits. It worth the money most of the time.

Presentable can be a small reno e.g. new coat of paint, clean-up, simple fixing, new curtain etc.

This place I am talking about is severely run down such that it is better for some one to re-build then to just put in a new coat of paint. example many pipes and electrical system need by-pass and needs to be dug out, tiles falling and cracked, roof leaking,wooden doors rotted, iron grills rusted etc...you get the picture.

There are people who actually look for such run-down properties so that they can tear it down (or if conservation shop houses, do major makeover) to rebuild.

My following comments are based on a very very preliminary study I did long ago after talking to a contractor who happened to be on a same group tour and then following up (after the tour), talking to an architect... Will likely contain many inaccuracies but ought to be useful to get a general picture if you plan to DIY...

The experienced ones (to save costs) will engage a freelance architect to create a design either based on their inputs or they can leave it to the architect to decide. The final drawings need to be submitted for approval (BCA?). Need to be signed by a qualified Architect & Structural Engineer. Next, you'll need to engage a Contractor who'll of course engage sub-contractors for the different specialised jobs.

I guess you' have to be very hands on (profits will be lower if you out-source everything) from design conceptualisation (the house, flooring, windows, aircon, lightings, plumbing,..) to completion. Very likely, have to treat it like a Project Management, looking into schedule, Cash Flow,...

It should be worthwhile but you need to enjoy the whole process...

PS. IMO, just go ahead and talk to a few architects (contractors may not give very a accurate picture especially pertaining to cost and timeline..) and you ought to be able to get a better picture of the process and costs.

It was the same story i learned. Let me add-on. Please note that it might be erroneous and should be double checked.

There is a "one-stop" service provided by architectural house, which takes care of all hassles, but with a premium.

The last number i learned was $400k-450k one-stop cost for a 3 (or 4?) levels terrace house (non-corner) from scratch.