Hi all! (long time no see )
My IP in QLD on the Indooroopilly / Chapel Hill border is in need of major repairs/rebuild, just got some quotes in and trying to decide whether to:
1. knock it down and sell the land (cheapest option)
2. repair/rebuild the affected part of the house (old 60's style, very steep block)
3. knock it down and build a new IP
The block of land is 29.5 perches, just a bit under the subdividable limit for the area. It's zoned Res A so no duplexes or cool value adds available there.
Tenants are in there now but we've dropped the rent to compensate for the sad state of the deck and back stairs which are about to be boarded off for safety reasons.
Apparently the dry spell then the torrential rain of late really took it's toll on accelerating the ageing of the exposed deck (which is about 10 years old)
My first thought was option #1 as the easiest/cheapest/quickest option but the next morning I woke up wondering how fast Indooropilly is growing at the moment…
Option #2 will be 10 to 20% of the current bank valuation of the house/property depending on the choices made, and we can redraw to finance this.
And option #3 is probably not the most viable option for us, until early next year.
So I thought I'd ask here to get some ideas/inspiration/food for thought…
And does anyone know the current approx. growth forecast for the Indooroopilly / Chapel Hill area?
MMRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Which part of Chapel Hill is the property ?
I have lived in CH for the last 8 years so now most of the streets fairly well.
What do you think the current valuation for the land would be.
Richard Taylor | Australia's leading private lender
It's on Blackstone Street. Technically it's Indooroopilly, but it's more like a Chapel Hill kind of area (and we're fairly close to the suburb boundary). I don't know what the land value is but I saw a similar sized block advertised a couple of years ago (although it was further up the hill, but not on the side with the views like ours) for $500k, which is double the council land valuation. I suppose I should go and order one of those street reports showing sales for the past few years
At a guess, I am thinking the land might sell for $380k
Part of me thinks it would be easier to sell as a cleared block than with the old house on it, but a friend I discussed this with today disagreed saying at least it brings income while there is a house.Jeff JohnsonMember@jeff-johnsonJoin Date: 2008Post Count: 50
I can email a report if you don't have one yet.
Many of the reports available to the public are not very comprehensive and a lot of them sell the info about who is looking at their property's value to agents so they can contact and try to list.
I am in Townsville but can access Bris data and will not pass on details or hassle you to list
Thanks Jeff, that would be super!
I will PM you my email address now.
MMnejasMember@nejasJoin Date: 2008Post Count: 20
Crunch some numbers! Will 10 to 20% of bank value spent on reno's add more than that to the property when finished? It will certainly help lift your rent? From what I understand you can depreciate the work and get a new valuation spending that sort of $$ which may give more instant equity? Try and stay at 10% if you can and work with creative people, don't just repair change the layout if you can to change the whole appeal!VStarParticipant@vstarJoin Date: 2004Post Count: 48
Or Option#4 – Keep the house on there for the rental income and get plans drawn up and approved by Council and sell the land/house with plans to a builder?
Like Nejas suggested ,crunch some numbers. That is what are the holding costs especially if you hold for 1 more year if you go with option#3? How much would you have to sell the place for Option#3 to recoup buy costs and/or holding costs plus agents selling costs? Would the area's market be buying that price? Could you find a better deal if you took option#1 and got the cash up front?
Just some questions that i hope helps you find your answer !