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Well to answer your main question - its probably up to personal taste since you're the one living there for a few years. If your plan is to eventually demolish, I suppose you should try and spend as little as possible while still keep the place livable.

Hate to be a downer, but its actually R20/R30 - are you sure you can subdivide in accordance with your plan? From memory, it was something like preserving the streetscape to get the higher density bonus.