The house is situated in a pretty upmarket area and is close to some good schools. The block is quite big and the land alone is worth quite a bit. And despite the state of the house, it has lots of potential - upstairs, there is scope to add in another bedroom and bathroom, as well as a study. Downstairs could be built in to house a self-contained flat (minus the kitchen) of sorts with a bedroom, bathroom and living area.
This would take the home from a three-bedroom, one-bathroom dwelling to a five-bedroom plus study, three bathroom dwelling with two separate living areas.
DH's uncle intends to list the property at $400,000. We would put in a maximum offer of $350,000, given that this is what RPData values the land at. In its current form, the house is essentially worthless.
Nicely renovated, four-bedroom, two-bathroom houses in this area usually go for around $550,000-$650,000. We would live in the house and raise our family in it, so selling it is not a priority, but we would obviously be careful to not over-capitalise.
Would you take on this project? Do the potential pros outweigh the obvious con that is renovating a house in a state of disrepair? Could we basically rebuild the house for $150-$200k? Keep in mind that we have never renovated before and would be relying on trades to do the bulk of the work.
Edited by jamdonut, 01 February 2013 - 09:12 PM.