Recently, a friend said that she does not mind buying a house with little renovations because if she were to renovate it would probably be just the kitchen anyway. This brought me back to what I am looking for when I look for properties. If it is for my own stay, the renovation MUST meet what I want. For example, if the owner loves a dash of red here and there and the kitchen cabinets are all in pearly white colours, I must say that I would not be buying the property because the renovations are way too far from what I would want to do.
However, let’s assume I intend to buy to rent out. Then, I would prefer renovated units. In fact renting out a renovated unit would mean a much better premium compared than empty unit. For those who are thinking of renting, they would appreciate if there are renovations and also the furnitures and fittings but none of them would go to the extent of renting a place only when the renovations meet their expectations! That is why renting out fully furnished would be advisable too, my personal opinion.
In terms of buying a unit, if the renovations has been extensive, it would actually be cheaper to buy the property instead of carrying out the renovations myself thus losing both time and money. Please be reminded that if the typical property price in the area is RM500,000 and your renovation cost you RM100,000, it is HIGHLY UNLIKELY for you to be able to sell your property for RM600,000.
My friend has more or less shortlisted what she termed as a good buy. One unit with full renovations at a premium of RM20,000. This is a very reasonable premium to pay because for RM20,000 today, you cannot do much and typically even the renovation specialist would give you a sly smile if you were to tell him that your budget is just RM20,000 for renovation. Thus in my personal opinion, renovate as per what is needed and not so extensive that when you wanted to sell, you feel that the buyer is shortchanging you because he is unwilling to pay for YOUR RENOVATION.
written on 28 dec 2013, updated on 25 mar 2016.
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