Frankston (Sth) IP 3Br 600sqm Extend or Subdivide?

Discussion in 'Adding Value' started by teatreeoil, 19th Mar, 2015.

  1. teatreeoil

    teatreeoil Member

    Joined:
    24th Sep, 2010
    Messages:
    4
    Location:
    vic
    Bought a Frankston (VIC) IP few years ago, 3Br old weather-board house on a concrete slab. House is very basic but in average living condition, currently rented out.

    The house is in a good pocket close to Frankston/FrankstonSouth boundary, few hundred metres from Frankton high school.

    The plan is to sell it in 2-3 years.

    I have a Reno/Extension Budget 20k-30k, or I can plan subdivision for around 10k.

    Just wondering which option attracts better ROI at sell?

    Thanks very much
     
  2. alicudi

    alicudi Member

    Joined:
    5th Feb, 2014
    Messages:
    245
    Location:
    Patterson Lakes, Victoria
    Hi

    Can you throw us a street name of this properties location?

    If you are going to reno/extend the house I would do it after the tenant left so that you sell it off looking brand new. If you extend the home will it add any extra issues should you or the new owner wish to subdivide the site in the future?

    Does the current house have to be modified to subdivide?, if not and you can do the lot for $10,000 this is by far going to be what I think is your most profitable option.

    Realistically I am thinking the best option may be to subdivide and do a nice tidy up of the exterior of the existing home to achieve a higher price for the subdivided land as it will make everything look more attractive.

    Renovating inside the existing house may not really increase the price you can achieve from the subdivided rear block if the exterior of the house still looks old and shabby if you get my drift.

    Regards,

    alicudi
     
  3. Cassandra

    Cassandra Member

    Joined:
    11th Mar, 2015
    Messages:
    84
    Location:
    Cocos Island
    The Frankston market is booming and buyers agents are starting to target this suburb for their clients.

    If you bought a few years ago, your IP is probably positively geared (or very close to it). Depending on what you paid, you are sitting on some sweet capital gain which is only going to increase, even if you choose to do nothing.

    Adding a room and tidying-up the house up will increase your yield massively. 4 bedders in Frankston always fetch a rent or sales premium.
     
  4. teatreeoil

    teatreeoil Member

    Joined:
    24th Sep, 2010
    Messages:
    4
    Location:
    vic
    Thanks for the reply

    Some further questions on renovation/extension

    The rear of house faces true north, from arial view the building appears diagonal on the block. The building is of wooden frame and covered in fake brick cladding.

    to tidy up the exterior. Should I do anything to the fake brick cladding? or is there anything else that can make the house look more appealing?

    Also, to get some further ideas and quotes, could you please recommend some good tradesmen that I can talk to?

    thanks