walkup building

i have bought a walk up flat in wanchai area and am

wondering if this is up for redevelopment? is there any way i can find out? if not for redevelopment i have to renovate the whole flat how much budget should i put into a 400 net area flat. cheap and efficient nothing fancy and how much rental to charge. thanks for your comments.

What Y_and_H said.


If the property is going to be redeveloped, I would not be spending a penny on renovation preferring to rent "as is" and would make sure that any lease has a clause allowing the landlord to terminate on X months notice if the building is being redeveloped.

I expect he is thinking about buying a property, and is asking help to make some investment calculations.


He may not want to say that, for fear someone will discover what his target is and beat him to it.


(Snap! I made an offer this morning. haha.)

Fair point.


If so, there is a big difference between a building that a developer has decided to redevelop (in which buying is unlikely) and one which get redeveloped at some point in the future.


Short answer is: it depends on things like expected holding period (presumably at least three years given current tax/stamp duty issues). Even at the low end of renovations (i.e. bare minimum to get it to the point where a tenant will move in), for a flat that size I would expect to spend about 30-40,000 for a complete paint job (more if all the plaster needs to be redone) and then it goes up from there depending on what needs to get done - kitchen? bathroom? light fittings? windows? front door? curtains? flooring? aircon units? The list goes on.


I'd get some quotes for different options and then check with an agent what the flat would rent for once the work for each option is done. Ideally you want to get the incremental cost of anything above the most basic renovation back in 3-4 years. Given where yields are at the moment, that may not be easy.

thanks for your valuable comments trainee investor .

it is a private deal and did not go through real estate agent that is why i do not know if there is news of redevelopment. the owner did not seem to mind he just want it sold as the tenant was not paying rent even if it was below market.