Renovate or Not

Hello Everyone

I'm new to this forum. I've been investing for around 4 years.

I wanted to know your personal opinion on this.

We own a 2 story-semi on a nice location.
Near the beach and amenities in Sydney.
Property is rented. Rental return is around 4.5%. Its 100% investment.
Semi sits on a 300m2 land. Got garden. Not too bad for its location.
Currently some ocean glimpses from kitchen and living windows.
No terrace.

Would you renovate this semi:

- Go up, add a 3rd level (level up will have ocean views)
- Add a terrace or two terraces with views

Investment would be around $300k+, I could increase rent by another $500-$600 a week. I think value would increase more than $300k.
But no rent for 4 months.

Or, leave it as it is and find a new property with those $300k deposit.

Question is, is it smart to renovate investment properties?

Thanks a lot in advance
 
Investment would be around $300k+, I could increase rent by another $500-$600 a week.
That's a good deal :)

I think value would increase more than $300k.
It would have to go up by $600K (rule of $1 reno spend for $2 min. value increase) or not worth doing IMO.

But no rent for 4 months.
Work out the numbers and see if they justify the loss of rent and the loss of deductions for the reno period, as the property is not available for rent.
 
Back
Top