GF to add value to sell ..or not ??

We have a IP - a 3br house on 556m2 land and it has a 90m2 'shed' in the back yard...which has a mezzanine, woodfire belly stove, sound proof room and lounge room. The former owner built it as extra living space for his family of five kids. We want to increase our sale price by 100k if possible to clear as much PPOR debt as can.

To achieve that (in my dreams I think, unless its an awesome paint job )
- repaint internal of house in White Exchange half
- possibly do pine timber flooring in a lime wash to look beachy and modern
- paint all external timber deck work in Grey Ridge
- new vanity and loo

But the biggest item is : is it worth the cost (16k alone for BA approvals) and effort to get an approved liveable dwelling. It would need waterproofing, lining walls, kitchenette, bathroom (has a loo and a tap already but not nicely done). Plus, it's 90cm to fence line. We already have a second hand kitchen. BUt we'd be paying tradies to do the instal.

On another angle, we thought maybe instead of having it as an official separate dwelling, we just put in a bathroom and it could be a teenage retreat, a part of the home. Not sure what council approvals are needed for that...will need to look into it.

Or take no action and let another investor visualise and actualise when they buy.

 

where is the property located? Is it zoned for development? what would be the rental return for the granny flat? Around here, bank generally value a 130K granny flat as a 60-70K improvement on the property as a whole. So you're generally not adding even dollar for dollar value, let alone making 100K extra on a sale.

 

It would be great if it's a really bad idea because we,d save ourselves a lot of headache doing it . maybe it would sell just as well as is. Just a general freshen up might do it. Thank you. Where is yr ip? This one is wollongong.

 

GF's aren't exactly a value add exercise.

Why are you looking to sell?

 

Cash flow too tight

 

Also need to think about your exit strategy, how many people are looking for a property with a granny flat? It may actually limit your exposure to types of buyers

 

I don't think I'd bother with a GF then. Most agents around here (western Sydney) take a pic of an empty space in the backyard to advertise space for a GF to potential buyers.

 

Actually that's a secondary reason, and it is tight but maybe that's a home owner thing???

we haven't decided to sell as yet.

What we are really looking for is a "strategy" for this new stage. Our goal had been to purchase a quality PPOR after rentvesting and building enough equity to buy a good home. Now we are at a new stage, no longer in a cheap rental (thank God) but...we have 80% PPOR mortgage non tax deductible.

Hence why I'm writing here now. To get ideas on what strategy: sell IPS to reduce non t d debt. Or. Keep the two IPs and pay down PPOR. IPs are CF neutral.

 

Yes and it's kinda cool right now as is...a fully sound proof music room, a workshop, home theatre, mezzanine play area. We should move into it as I then we could rent out the expensive new PPOR but my other half is totally ready to have a family home and doesn't want to move again.

 

If you can convert the space into a GF, why not keep it and reap the CF of a second rental on the same block?