Auckland house prices keep climbing! Renovating older homes becomes a new focus for homeowners and investors

As house prices take an extraordinary trajectory, more buyers are turning their attention to renovating older homes. Some prioritise location, buying an older house on a good street and renovating it into a comfortable, convenient home for themselves. Others see investment potential, hoping to make a worthwhile profit by renovating and reselling. As a result, demand for residential construction and renovation services in Auckland is growing rapidly.

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Renovating older homes “can build wealth”: central Auckland homeowner earns, in under 3 months, a net profit of 200,000 New Zealand dollars

In less than three months, the sale price of an Auckland home with 3 bedrooms quietly rose by NZ$300,000.

A three-bedroom home in Avondale was renovated and relisted just two months after its owner bought it, selling successfully in February this year for $1,250,000.
 
We understand that the owner bought the property in November last year for $950,000. They completely remodelled the kitchen, then renovated the bathroom and deck, replaced the carpet and repainted the home inside and out. With a fresh new look, the house was relisted and sold in February this year for $1,250,000. Compared with its price three months earlier, it had quietly gained NZ$300,000.
 
The homeowner told us the renovation cost approximately NZ$100,000. After deducting their expenditure, they said the home's value had increased by nearly three hundred thousand dollars in just three months. 

Through renovation, this older home's value rose by NZ$200,000 in a short time. Renovating older properties has therefore become a way for many people to make their first substantial profit in the housing market.

Investor: renovating older homes carries lower risk and delivers faster returns than buying land and building

An Auckland investor specialising in renovating older homes told us the market is currently booming in New Zealand. Many people have moved away from the traditional investment model of buying land and building, instead seeking inexpensive older homes to renovate for profit.

 The homeowner said: “Renovating an older home costs less, carries less risk and gets your money back faster than buying land and building. If you pay a high price for land in a good area and then spend more on construction, a single house takes at least half a year to build and requires substantial funding. Even in a good area, house prices would need at least two years to rise enough for you to make NZ$200,000. If you choose poorly and buy in an area with weaker growth potential, it could take 4–5 years to make that $200,000.”

 

Extending your own home can bring substantial returns! kiwi family successfully converts its double garage into a unit

A unit with a bedroom and living room currently sells for upwards of around NZ$500,000 in Auckland. Recently, a Kiwi family in Takanini, South Auckland, renovated their double garage, successfully adding a one-bedroom dwelling to their existing property.

We understand that, as the family grew, the homeowner wanted to provide a separate home for his son. He engaged a designer to turn the double garage into a unit with a bedroom and living room. The homeowner said: “Whether it becomes a retirement home or a rental property, the converted dwelling has added considerable value for our family.”
 
The property's designer, Reiche, said she had completed many similar double-garage conversions, but this example was particularly successful. “By renovating the double garage, we created a very appealing home with a living room, open-plan kitchen, single bedroom, bathroom and laundry area, and even a small office. The total cost was around NZ$200,000.”

Based on current Auckland prices for units with a bedroom and living room, this renovation not only increased the value of the owner's property but also saved NZ$300,000 in housing costs.

 

YIJU New Zealand and the New Zealand Chinese Building Industry Association join forces for a seminar series on renovating older homes

Renovating an older home is a substantial, complex undertaking involving detailed approval processes and specialist construction knowledge. If you are planning to renovate and still have questions, you are welcome to attend this free event. 

The series, themed “Renovating older homes: how to increase property value”, comprises two educational seminars and an expo. The first seminar will take place on 8 April, covering:

1. The steps and principles of renovating older homes

2. How can you spend wisely and maximise property value at the lowest cost?

3. How do you set a renovation budget for an older home?

4. Which building works require approval, and which do not?

5. How do you choose the most suitable building materials for older homes in different conditions?

6. How can you obtain finance for an older-home renovation project?

7. What legal issues arise when renovating an older home? The launch of this event has already attracted considerable industry interest. Registration is now open and attracting strong demand. We warmly welcome you to sign up!

 

Event time: 8 April 2021, 15:00–17:00. Venue: 261 Morrin Road, Saint Johns, Auckland

 

Event sponsors wanted!

Whether you work in property maintenance, construction, design, materials supply, project management, or health and safety, or are a professional in a related field such as finance, insurance, accounting or law, we welcome you as an event guest. If you are willing to share your expertise and advice on renovating older homes, and want to provide quality services and products to homeowners planning renovations, we would love you to join us.