Comments on 20 Kintore Street CAMBERWELL
This is a real rating with private client details removed. Little is in the building section as most was to be changed. The feasibility and visits and builder quotes were all done within a week prior to possible purchase, but our clients decided not to buy. Links to all below.
I have sent you videos of both your home and the target home at 20 Kintore, with my big picture thoughts, having been thru both. I have also sent you some sales in the area that are like a totem pole for both – above and below.
Buy and Reno
?
Sell
Let’s cut through the fluff and look at what really matters when you’re weighing up a move – especially if you’re considering taking on a renovation.
The Now Picture
First up, what’s your current situation? Let’s be brutally honest here – not what you think your home is worth, but what it would actually sell for this Saturday. In Melbourne’s Top End, emotions and reality often live in different postcodes.
Market Reality Check
This isn’t about what your neighbor got last year or what that flashy agent promised. It’s about:
- What’s actually selling (and what isn’t)
- Where the genuine buyers are
- What they’re really paying
- How the money market (those pesky interest rates) is affecting your patch
The Money Story
Here’s where it gets interesting. You need to consider:
- Sale costs (agents aren’t getting cheaper)
- Stamp duty (ouch)
- Renovation costs (double your first guess, then add some)
- Holding costs while you’re in rental
- That buffer you’ll need when everything takes longer than planned
The Risk Reality
Let me be straight with you – I’ve seen this movie before:
- Markets can turn (both ways) during your renovation
- Builders can disappear
- Costs can blow out
- Council can say no
- Heritage overlays can bite
Timeline Truth
In today’s market, you’re looking at:
- 3-6 months to sell (done properly)
- 3-6 months to find and buy
- 6-12 months for permits
- 12-18 months for serious renovation That’s 2-3 years of your life. Be sure it’s worth it.
The Bottom Line
Before you jump in, ask yourself:
- Is the end result worth the journey?
- Can you handle the uncertainty?
- Have you got the stomach for the fight?
- Is your relationship renovation-proof?
Want to Know More?
For a deeper dive into what’s happening in Melbourne’s Top End market, catch us at marketnews.com.au or give us a call.
Remember, sometimes the best move is no move at all. Other times, it’s the best decision you’ll ever make.
The trick is knowing which is which.
Mal James is Director of James Buy Sell, focusing on Melbourne’s Top End residential market.
Feasibility Study: Selling a Home in Bayside/Stonnington, Victoria, Australia, and Moving to a Period Home Requiring Renovation
1. Selling Costs (Existing Home – $5M)
Agent Commission (1.5% – 2%): $75,000 – $100,000
Marketing Costs (2% of sale price): $100,000
Conveyancing/Legal Fees: $2,000 – $3,500
Staging (Optional): $5,000 – $10,000
Total Selling Costs: $182,000 – $213,500
Net Receipts from Sale (After Selling Costs): $4.79M
2. Purchase Costs (Period Home – $4M + 10% Variance)
Purchase Price (with 10% variance upwards): $4.4M
Stamp Duty on $4.4M: ~$242,000
Buyer’s Agent Fees (1.1% of $4.4M): $48,400
Conveyancing/Legal Fees: $2,000 – $3,500
Building & Pest Inspection: $800 – $1,500
Total Purchase Costs: $4.69M
3. Moving Costs
Removalist Fees: $30,000
Storage Costs (for 18 months): $30,000
Total Moving Costs: $60,000
4. Holding Costs (During 24-Month Renovation)
Mortgage & Interest Costs (on $7M Loan – Net Sale Proceeds Deducted)
Net Mortgage After Sale Proceeds Deduction ($7M – $4.79M): $2.21M
Assuming 6% interest
Annual interest cost: $132,600
2-Year Interest Cost: $265,200
Total Mortgage Repayments (Including Principal & Interest Over 10 & 20 Years at 6%):
10-Year Total: ~$2.95M
20-Year Total: ~$4.63M
Additional Holding Costs
Council Rates (Estimated at $5,000 – $7,000 per year): $10,000 – $14,000
Land Tax (Estimated at $15,000 – $25,000 per year): $30,000 – $50,000
Insurance (Vacant Home + Construction Insurance, $5,000 – $10,000 per year): $10,000 – $20,000
Total Holding Costs: $315,200 – $349,200
5. Renovation Costs
Renovation & Construction
Full Gut Renovation & Extension (~$6,000 per sqm for 350 sqm): $2.1M
Underground Garaging (Optional): $1M
Additional Renovation (350 sqm at $6,000 per sqm): $2.1M
Additional Renovation Costs
Architect & Engineer Fees (8-12% of build cost): $336,000 – $504,000
Permits & Council Approvals: $5,000 – $20,000
Contingency (20% buffer): $842,000
Total Renovation Costs: $6.38M – $6.57M
6. Temporary Accommodation (For 1 Year)
Rental for 12 months (~$1,500 – $2,500 per week): $78,000 – $130,000
Utilities (Electricity, Gas, Internet, Water): $5,000 – $8,000
Total Temporary Accommodation Costs: $83,000 – $138,000
Buy and Reno
?
Sell
What is the big picture?
Its 3 simple questions and of course answers
What is it you both and your family really really wants?
Is this it and is this any good?
How if we want it, do we get it?
Here are some of my calcs - so we can talk real, not imaginary!
So these figures show if you renovate poorly 20 Kintore and take 20 years to pay off your mortgage you will may actually have simply broken even after tax for all that effort. Eg Value of home $19m and paid off $19m
Alternative you could stay where you are and you have good growth on your property over 20 years and it is now worth the same as the poorly renovated 20 Kintore at 19m – except you have used 11m to 14m after tax to spend on an overseas trip x a few every year for the family or you have spent half on trips and put $5m into Super extra or you have bought your children townhouses and they are now worth a lot.
These figures don’t tell you what to do or even how to think – they just are truths on what the outcomes of what you may choose to do.
But Mal I hear you say. What if, what if, what if and I agree.
Mal I want a project, I want to buy Kintore, and I want to renovate well and smart and sell 65 smartly then I can have my cake and eat it to – yes you can or you could on another home or your could staying put.
