I have a couple of properties in Colyton that are ex-housing, in a street where there are still housing properties around them. I've had them for nearly 15 years now. I did a small cosmetic reno on one around 6 years ago, and replaced the carpet last year, while I haven't spent anything on the other one, other than repairs and replacing whitegoods/air con when needed. The loans on each of them are less than 350k and they would've been built around the early 1980s. They are starting to look very tired, and the quality of tenant I'm getting is reflecting that, so I need to do something about them. I also don't want to be the landlord that lets their properties be run into the ground. Both would need a good reno to lift them up to a standard to minimise ongoing maintenance, be a better quality property and hopefully attract a better tenant. So I've been thinking about whether I am better off knocking each of them down and building a house + granny under the one roof. Doing a KDR would likely double the rent, but I'm not sure if I would be overcapitalising. Has anyone made the choice of reno vs KDR and what was your reasoning for coming up with the final decision? I answer this sort of question for my clients often, but being my own properties I feel a bit stuck in the mud about it.
Nice choice, some might dispute buying in housing area's, but as a long term buy & hold you must be happy when gentrification happens Your answer lies in the nearby properties When the corner blocks are being subdivided and others being turned into duplex developments then "maybe" a KDR will work (if yours can't be divided). There is definitely a difference in profit to be made between getting out (selling to a developer at a high price ) early in the gentrification phase V's developing yourself/KDR/selling later..... Ride the wave
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