Appraised Market Value
August 15, 2009 | Filed under Life, Money
We had someone from one of the local real estate companies come out to our house this afternoon to give us a rough appraisal of the current market value of our house. We’re obviously keen to move within a year, and this particular agent’s track record has been excellent – he’s achieved 100% sales with all his properties, with all of them selling above the asking price. It also doesn’t hurt that he’s extremely young (a handful of years older than myself, if that), extremely good looking, and that I got his contact details – for business purposes only of course, because I’m totally and utterly devoted to Dylan. Absolutely.
Anyway, some background information on our house:
- We bought in February 2001 for $142,000AUD. The mortgage was paid off about five years, with the total coming to about $165,000AUD including the interest paid to the bank, taxes, etc.
- For the first six and a half years, the house was rented out to tenants and treated as an investment property. We moved in ourselves in October 2007, after having put in about $40,000AUD worth of renovations.
- While the house was being rented out, we were receiving about $1000AUD of rent each month.
- It’s a three bedroom, one bathroom, two toilets, one living area, one kitchen and dining room house. The main benefit is the size of our lot (629 metres squared) and our backyard patio – it’s nothing more than a concrete slab with a tin roof, but if we put a few thousand in to spruce it up with decking, it’d easily add another $20,000AUD to the value of our home.
So throwing some figures together, we paid $200,000AUD in total for the house (actual price, interest, taxes, renovations), with about $75,000AUD of which was covered by rental income (so we really only paid about $125,000AUD for our house).
The real estate agent quoted us $360,000AUD – $380,000AUD market value for our house if it was to go to auction in the current market (largely based on the improvements we’ve made since we’ve moved in). So, technically, if we were to sell now and buy in our old suburb as planned, we’ll have made a profit of about $250,000AUD within nine years, or 200% of our total investment.
…I love working with money and figures.
8 Responses to Appraised Market Value
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It’s great that you understand all of that. I’ve met a lot of people with problems understanding basic math concepts, let alone all of this.
Are your parents interested in renovating the porch?
So the move would include them finding a home of their own and you finding yours? Or is that still on the back-burner?
(I’m doing my best to ask questions and talk about non-cute-guy issues as I’m sure most of the comments will be about him, not the math and investment topic). :)
Reply: I think they’d only want to do the porch if they’re certain it’d bump the price up past $400K – we’d want to do it properly with decking, walls, sunshades, etc., and that’s a good $5K right there.
As for the move, $380K would only get them a 2bdrm place in our old area, so I’d have to get my own place, unless they take out another mortgage to buy a bigger place. It makes more sense for them to buy a 2bdrm though, and for me to take out my own mortgage.
Skye on August 16, 2009 #
Niiice! I was going to ask about the 9 years bit, but I assume that’s just the length of time you’ve had the house?
I’m also curious about the renovations… any before/after pics? A post about them? I’m particularly interested because we’re looking at selling our house and the realtor insists that in this market we’re looking at a loss of ~ $40K, which is kind of ridiculous. We bought with the intention of renovating because the place has a ton of potential but things sort of fell through, and there were concerns about cost… but your renovations brought a large return at a relatively low cost.
I love these kinds of posts. :D
Reply: No renovations pics I’m afraid…I can get around (eventually) to taking photos of what we have now, to give an idea of what it looks like fully renovated. Keep in mind it was originally an old 50s style home with hexagonal tiles and Formica, etc. It’s a modern home now.
TWD on August 16, 2009 #
That’s pretty freakin’ awesome considering the economy right now. Many houses here in NZ are valued at LESS than what their owners bought them for!
Also, you already know what you could do if you have a mid-life crisis! Accounting! Haha.
Reply: I’ve thought of accounting before! I’d be tempted if it weren’t for having to do the CPA and stuff. Financial planning on the other hand…
Darnielle on August 16, 2009 #
That’s amazing! Wow, when I read that the renovations cost 40 grand, I was shocked but they’ve added much more value to your home!
I would love to see photos of before-and-after renovation too, if you have any :)
Carmen on August 16, 2009 #
I could sex those numbers. What an investment! I hope all these moving plans do go through within the year… you sure are a girl who needs some family freedom to get up to your naughty things =P
I’m actually quite surprised at the market value for your home though, it seems a little low (not that 200% return isn’t great as it is). I had always thought housing in the Melbs and Syds were a lot higher than in Brissy. Our home was around $100k when we bought it 12 years ago in suburbia, granted its in a great position as its close to two shopping centres, bus stops, many public services etc. Our market value is now upwards of $500k, edging onto $600k (with about $50k of reno). Maybe it’s the area – but even my friend’s crappy small house who lives in suburbia a little further away in the older less convenient area is marketing a solid $400k.
Quite confused (what happened to Brisbane being the city of retirement and oldies? HOW ARE THEY SUPPOSED TO AFFORD HOUSING?).
Reply: We’re in the extreme outer suburbs – I can drive five mins down the road and go past a cow paddock. :P
Jess on August 16, 2009 #
undeniably, u are really great in figures :)
and im amazed how u actually plan for da future. at this young age, younger than me i suppose. and im still a student with debt :(
annant on August 16, 2009 #
Nicey nice!
Arwen on August 17, 2009 #
Wow. They could pay a lot off of a decently sized house with that sort of profit!
Stephanie on August 17, 2009 #