A Fresh Breath of New Life to North Lambton Home
Allan* came to Pippa Rose, our Lead Investment Services Manager, with his property. The three-bedroom, one-bathroom house on a 516m² block in North Lambton had been in the same family for generations, with Allan and his brother inheriting it from their father.
The well-established suburb is positioned close to the University of Newcastle, primary and secondary schools and John Hunter Hospital, making it an ideal location for families and students to occupy. Over time, the house became tired and dated, leaving both owners uncertain about how to proceed—whether to opt for a full renovation or a complete knockdown rebuild.
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The Challenge
The brothers had been unsure about the property’s future and didn’t know which direction would be the best for increasing its value. Allan had been an Investment Services client with Leah Jay for around five years prior to inheriting the North Lambton property. He initially sought advice while searching for a different property and has maintained an ongoing relationship, discussing improvements on various properties to help maximise Allan’s return on investment (ROI).
When it came time to decide on the North Lambton property, Pippa’s expertise was pivotal in helping Allan and his brother determine the best course of action.
The Solution
The property needed significant updates, and after receiving a comprehensive Property Health Check (PHC) from Pippa, Allan felt confident in proceeding with a renovation. Pippa outlined several scenarios, and the final decision was to move forward with a full renovation; this option allowed Allan and his brother to unlock significant equity without overcapitalising.
The renovation plan included modernising the home while ensuring it met the demands of potential buyers or renters. The following upgrades were completed:
- Conversion of the sunroom/study into an ensuite, adding significant value by increasing the home’s bathroom count
- Renovation of the main bathroom, and laundry
- A full internal repaint capitalising
- Installation of new carpets and blinds
- New ceiling fans and lighting fixtures throughout
- Replacement of the existing double garage
- Complete renovation of the kitchen
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The Result
The renovation is currently underway, and as the owners are undertaking it themselves, they anticipate that the indicative project cost determined in the PHC of $115,000 will be the maximum expenditure.
The impact on both rental income and the property’s market value will be significant.
The rental price is expected to increase from $500 per week to $680 per week. The post-renovation valuation of the property is estimated to be between $900,000 and $950,000, a substantial increase from the pre-renovation value of $650,000 to $700,000.
With a return on investment expected at over 8%, the owners were able to move forward confidently, knowing that they had added value without the risk of overcapitalising. The plan is to sell the property, capitalising on the enhanced value of a much-needed maintenance refresh and renovation.
Allan commented, “This service is a must-have for any investor looking to either buy or unlock value for any property. I cannot recommend Leah Jay and Pippa’s Investment services team enough!”
All appraisals will be reassessed after renovations in the current market.
Need property advice?
If you’re interested in exploring your property’s potential or would like to learn more about a Property Health Check, contact our Investment Services team today.
