Owners get handy for added interest

Increasing numbers of home buyers are reaching for their toolbelts to turn "do-ups" into dream homes.

Rundown houses are being snapped up by buyers looking for a step up into a sought-after suburb, or to turn a profit when the market rebounds.

Real Estate agent John Wills from Custom Residential, based in Auckland's Grey Lynn, said interest in do-ups had soared "big time" in the past six to eight months. Buyers were mostly private owners looking to buy into a hot suburb, rather than investors, he said.

One property on the market now, a four-bedroom villa close to Grey Lynn Park, attracted 100 groups at its first open home. Wills said the house needed work, "but it's a bay villa and it's in Grey Lynn and it's facing the right way".

Eight properties in need of renovation had been sold in recent months, Wills said.

"This is not necessarily first-home buyer territory, so they'll buy a do-up and sit down with an architect and tick all the boxes they want. They can get the fourth bedroom or the walk-in wardrobe."

Harcourts Glenfield agent David Hibbins said do-ups were quickly snapped up when they came on the market.

"We're seeing a bit of a trend emerging," he said. "Stock is tight and when they do come up they are sought after."

Hibbins said most of the interest came from people buying for themselves, but some investors were also coming back to the market.

Papatoetoe Barfoot & Thompson agent Roger Franks said he was about to list "the mother of all do-ups" in Mangere East, and expected strong interest. "It has scrim walls, the bathroom's a shocker, and the kitchen's a nightmare," he said.

"A really good do-up is where the bones are there, it just needs to be given that lift and someone to capture the essence of the property."

Bayleys central Auckland residential manager Rachel Dovey said buyers were "all over" a Westmere character bungalow for sale as a deceased estate. The four-bedroom house had an outdated interior but offered enormous potential.

"People are looking for opportunities because they're looking at perhaps buying well in this market, doing it up, and selling it in four or five years' time."

But first-home buyers were less likely to throw themselves into a potentially costly renovation project, and were more interested in "done-ups," agents said.

Ray White agent Martin Honey said fully renovated family homes were still drawing the most interest and selling for the best prices.

Makeover magic

Property commentator Olly Newland's top tips for adding value to your do-up:

* Spending money on kitchens and bathrooms pays off more than upgrading lounges or bedrooms.

* Instead of a new kitchen, "refresh" the look with new cupboard doors, handles and benchtops.

* An extra bedroom can add $50,000. Look for sunrooms or old washhouses that can be converted.

* Focus on the little things - if the plumbing and wiring is sound enough, just replace the taps and switches.

* Paint the exterior of the house in the existing colour; it will need fewer coats.

* Look at the neighbours' properties too, and offer to trim their hedge or paint their fence if needed.