Redevelopment

Hey guys,

I wonder if anyone has been in this situation.

I live in Sydney and own an investment property in St James (Perth). The house was built in the 1950s, so the condition of the house is average.

We were planning on nocking down the house and build 2 houses in about 10 years. But the one thing I want to avoid is spending too much money in repairing the house, only to demolish it.

Since purchasing it, we’ve spent $2000 on general repairs. Now we have to pay an extra few grand on other repairs. I’m concerned that after 10 years, we may have spent 10s of thousand of dollars in repair.

So the plan of building in 10 years is out the door and we would probably build in 2 years.

Do you think I should just task a risk and rent it out for 10 years, or take the next step of redevloping the land?

Now the land size is 766sqm. In your opinion, should I sub divide the land and build 2 seperate houses or should I build a duplex with common wall. Now in Sydney, duplexes are common. But in Perth, I’m not sure what would appeal more to buyers when its time to sell.

Any info would be appreicated.