Knock down or reno

Discussion in 'Investment Strategy' started by Squirrell, 3rd Feb, 2021.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Squirrell

    Squirrell Well-Known Member

    Joined:
    26th Sep, 2020
    Posts:
    999
    Location:
    Australia
    Its the age old question i know. We are in a comfortable 3 bed renovated 10 years ago clinker (180sqm) which is getting too small for us in a leafy melb eastern suburb 11ks from cbd. Need another bed and bath room at least. After initial discussions builder said we could go upstairs for 250 to 300k guesstimate. This would meet our needs for 10 years after which we would relocate to the regions. The other option i had in mind was knock down and rebuild. We are on a large 1000sqm block, and the house is currently positioned such that we cant subdivide. So if we built new my thinking is we could bring house closer to the front, have a huge backyard with the option to subdivide in future. We would also have a new house to enjoy, which i reckon we would need to pay 600k plus for. Anyone else been in a similar position? My main concern is that the clinker extension may not add value as in 10 years time it would just be land value for the property.
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Wouldn't you renovate the existing part of the property as part of the extension?
    Sounds the knock down rebuild would give you more options though
     
  3. Squirrell

    Squirrell Well-Known Member

    Joined:
    26th Sep, 2020
    Posts:
    999
    Location:
    Australia
    Maybe, but would add another 100k at least to cost i guess ....
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Can't imagine leaving the lower level as is with brand new second story built on top.
    Overall it would still be cheaper than a full knock down rebuild by the sounds of it.