Grey Lynn: Added value

Address: 8 Leighton St, Grey Lynn.

This ageing Ponsonby villa may offer hope to buyers with latte tastes on an instant coffee budget.

Location is the big drawcard offered by this somewhat world-weary early-1900s bay villa, just a street away from the java joints of Ponsonby Rd.

While many neighbouring properties on Leighton St have had their charm (and price tags) revitalised, No 8 oozes untapped potential.

The villa is elevated from the street, with a basement garage and stairs up to the front porch. A traditional central hallway is flanked by four bedrooms (currently rented for $480 a week).

The hall opens onto a living space that transitions into an open-plan rear kitchen, positioned in an addition to the original home. The kitchen overlooks the level backyard and is adjacent to the bathroom, toilet and laundry.

Original features include a pressed steel ceiling in the front bay bedroom, decorative fretwork and wooden floors.

So what should potential buyers be evaluating in a potential do-up such as this? Heraldhomes asked a house inspection expert and registered valuer.

Steve Gain, of The NZ House Inspection Company, suggests those considering buying a do-up get a full inspection of:

* Foundations/piles: Check for signs of slumping. If old timber piles are still in use they may be rotten underground and need replacing.

* Subfloor: Explore for borer and check under all wet areas (bathroom, laundry and kitchen) for rot from plumbing leaks.

* Roof: Assess iron roofing for rust (including under the sheet laps).

* Wiring: Inspect for old wiring due for replacement.

* Plumbing: Confirm if old galvanised plumbing is still in use as it may be rusting.

* Internal linings: Examine interior walls to see whether scrim has been removed and walls lined out with plaster board.

* Ceiling space: Check to see if there is insulation, any signs of borer or old wiring.

* Exterior cladding and windows/doors: Scan for excessive rot and determine whether window/door flashings are rusting or missing.

* Alterations: Verify with the council that any previous additions or alterations were permitted and signed off.

That knowledge provides a clearer idea of how much work is required. But how do you evaluate whether buying a do-up to renovate and re-sell will be profitable? Glenda Whitehead, of QV valuations, says while QV is able to provide current market valuations it can be difficult to predict future worth.

``I suggest potential buyers look at several scenarios: best case, most probable and worst case. They should budget based on the worst case, to ensure they do not lose money.''

If prospective buyers are appraising a do-up purely as a business proposition, Glenda says they should factor into their sums payment to themselves for managing the project and for any work they do on it themselves.

She recommends budding property developers state a profit margin that adequately compensates them for the risks in seeing the project through to completion. ``Over and above your labour cost, how much do you want to make out of this deal?

``Buyers' differing financing costs and tax structures can make a big difference to the profitability of such a renovation venture.

``If you are thinking about how much to spend on a property that is for your personal use, you can factor in things such as how much enjoyment you'll get living there. But if you are buying a do-up purely to make money you really need to be quite unemotional.''

VITAL STATISTICS

BEDROOMS: 4

BATHROOMS: 1

GARAGES: 1

SIZE: Land 481sq m, house 130sq m.

PRICE INDICATION: Similar properties in the area have sold for between $550,000 and $600,000. Auction July 19 at 2pm.

INSPECT: Sat 2-2.30pm, Wed 12-12.30pm.

ON THE WEB: www.bayleys.co.nz #43022, www.open2view.com #131913

CONTACT: Andrea Bell-Ritchie, Bayleys, ph 309 6020 bus, 021 906 793 mob, or Duncan Ritchie, 309 6020 bus, 021 400 811 mob.

FEATURES: Traditional early-1900s bay villa, in sought-after central location. Elevated from the street with front porch, basement garage and level back garden. Original features include a pressed steel ceiling in the front bay bedroom.