Renovate v knock down rebuild

Discussion in 'Renovation & Home Improvement' started by Jpm, 14th Mar, 2017.

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  1. Jpm

    Jpm Member

    Joined:
    27th Jan, 2017
    Posts:
    10
    Location:
    Melbourne
    Anyone else had this conundrum?

    Old weatherboard rental in VIC with a lean to at the back.
    It's in a shabby way but can be restored however the back half of the house has a poor layout.

    I'm tossing up whether to start replacing the tin roof ($17k) and then replace boards, paint and so on....
    Circa $45k
    OR
    Full restoration- architect, gut the whole thing, work with a shell probably circa $200K
    OR
    Knock the thing down and rebuild a new dwelling circa $360k

    Have a headache trying to work out best way forward.

    To fund the rebuild I would have to sell an IP , which I'd like to avoid, But maybe I should bite the bullet and realise that I gotta get the $$$ from somewhere to fund option 3.
     
    Jpm, 14th Mar, 2017
    #1
  2. Beano

    Beano Well-Known Member

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    3,359
    Location:
    Brisbane
    For a rental. ..just do the normal maintenance
     
    Beano, 14th Mar, 2017
    #2
    WestOz likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    Consider:
    Current market value
    Current rent

    Option 1 Resto - sale
    Rent?

    Option 2 Knockdown & rebuild - sale
    Rent?

    What gives best bang for your buck?
     
    Scott No Mates, 14th Mar, 2017
    #3
  4. WestOz

    WestOz Well-Known Member

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    19th Jun, 2015
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    1,259
    Location:
    WestOz
    Over thinking it, $'s in the land, as Beano said just maintain it, to act requirements, always gunna get someone in there for the right $, regardless of how shiet it is
     
    WestOz, 14th Mar, 2017
    #4
  5. Jjjjj

    Jjjjj Active Member

    Joined:
    19th Aug, 2015
    Posts:
    32
    Location:
    Melbourne
    If it's in toorak, knockdown rebuild.
    If it's in doveton, minor Reno and rent out.
     
    Jjjjj, 14th Mar, 2017
    #5
  6. Joynz

    Joynz Well-Known Member

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    Location:
    Melbourne
    Which suburb?
     
    Joynz, 14th Mar, 2017
    #6
  7. Jpm

    Jpm Member

    Joined:
    27th Jan, 2017
    Posts:
    10
    Location:
    Melbourne
    Yeah..I can see that I need to focus on it as a business model.

    Your right WestOz..I am overthinking it.

    Joynz -Preston
     
    Jpm, 15th Mar, 2017
    #7