New house with small land size or Old house with big land size

Hey Guys,
I am looking at two properties at the moment.

A new house in Girraween asking 1 mil for a 315m2 land area and old property (1980's) in castle hill asking for early 900K. we are thinking about renovating the old house and in next few years do a major renovation of knock-down and rebuild.

Can you please suggest, which is the better options and what needs to be considered?

Regards
Karthik

 

I would go with Castle hill option, but only it is liveable and renovation (around $50-60k) will make it up to your expectation.
I would not do a knock down rebuild after spending 900k (assuming land size is between 500-600 sqm) on a castle hill house.
So, a NO for both options.

 

My renovation cost is mentioned below. The land size is nearly 700.

Kitchen - Its an old kitchen with benchtops and with no appliance (so my budget) 25000
additional Bathroom (adding) 20000
Timber \ Carpet 8000
Bedroom Addition 30000
Toilet (existing) 3000
Painting (external \ Internal ) 10000
Roofing 10000
Coucil Approval + Extras 2000

Does it really worth spending it or knock down and rebuild, because new homes cost nearly 1.4 mil nearby.

 

Sorry if I have quoted it less or more. I am not sure have to do a inspection with builder first (if needed)

 

If the bones are good, renovation makes sense. Knockdown rebuild is not as easy and fashionable as it sounds.
Adding bedroom, bathroom and renovating entire kitchen does look like a lot of work.
Consider a proper extension as well.
Or keep looking. The prices may come down in a few months.

 

Thats a lot of renovation if you plan on knocking it down in a few years.

do you expect income to rise significantly in the next couple of years to afford the rebuild? Or are you just aiming for less you can actually afford?

If you can up the budget a little you might be able to negotiate a bargain.

 

This one looks good for the price: https://www.realestate.com.au/property-house-nsw-baulkham+hills-133396918

 

Did you mean to buy the older house and either renovate it or knockdown and rebuild? Did you mean to type that you have three options altogether.

Forget about buying a new house on a tiny block of land if you want to have an investor's mindset and if you want to make the best use of your cash. Only buy a new home on a tiny block of land if you have a consumer mindset and you want it all, now.

 

Like this? https://www.realestate.com.au/property-house-vic-collingwood-133362762

 

Castle hill simply because of location. and I feel you overestimated the reno costs

 

I would not knock down and rebuild in atleast 5 years.

 

I am not sure about the cost but just keeping my estimate on an higher end.

 

And then knock it down in 5 years? Thats 100k down the drain. Where is this money coming from?

not sure this is a good plan. Why do you expect to be able to borrow for the build in 5 years?

 

I believe the OP is asking 'Either-Or-Or question.

Option 1- buying the renovated property in girraween

Option 2 - buying older one in Castle Hill and renovating it

Option 3 - buying older one in Castle Hill and knock-down rebuilding it.

 

Thank you. yes, these are my options I am considering. Just addign few comments on option 2 & 3.

Option 2: Full Renovation cost (estimated - 70-90 K) and move there.

Option 3: Slight renovation like painiting and kitchen appliances and rent it out. Later after few years knock down and rebuild.

 

That's pretty unusual for Castle Hill in the low $900K's. Which part of Castle Hill is it in?

 

An old 1980's Castle Hill house with just under 700sqm land and for early 900k? As rare as hens teeth..but few have sold in the area.

https://www.realestate.com.au/sold/property-house-nsw-castle+hill-130174250

This one sold back in early 2019.