Quote:
Originally Posted by SeeBass
I thought I would run this question by you guys:
I have a friend that has a $400K, 1956,1100sq ft bungalow home in one of the better streets in Thorncliffe.
They are looking at either knocking it down or renovating it and creating a much better bungalow home at about 1500sq ft with about an investment of $150k to $250K to do it.
They dont plan on moving for many years but the concern is... is this not smart to do this in this area or will the investement pay off when it is time to sell in 10-20 years? He is worried he will have a house that should be worth $600K but the area can't bear it right away in case for unseen reasons it has to be sold and he could lose a lot of money.
Your thoughts please
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Whoever valued it at $400,000 was painting a bit of a rosy picture I'm afraid. Why wouldn't a buyer buy
http://www.realtor.ca/PropertyDetail...dKey=933755975
or
http://www.realtor.ca/PropertyDetail...ey=-1773488977 instead? These equivalent houses are listed at 338k and 354k. Keep in mind those are list prices, not sales prices. So if equivalent houses are available for less, that's what his is worth as well.
I think doing that reno is actually a really bad idea. You're basically ripping down a house which has value. Why not sell what he has now and buy something that meets their needs? For example, this 1500 sq ft bungalow in Thorncliff is 445k. Sell the existing house, buy this one and do a cosmetic reno. That would be a way cheaper way to upgrade.
http://www.realtor.ca/PropertyDetail...Key=1657833150