I have over $350K equity in my 4 BR Qlder. Now widowed empty nester, would like to live upstairs and raise to legal height, build 2×2 BR apartment IP's underneath. Can this be done legally & would it become difficult to sell later down the track, ie over capitalise?
The property is Zoned 3 and 5 mins from CBD.
I want to renovate upstairs and make 4th BR into an office & 2nd bathroom(ensuite) at the same time.
I quess what I'm asking is can I afford to do all this, and is it financially viable & legally doable??
Dukduk, Overcapitalisation means spending more money on an investment than can be justified – this is an analytical decision based on what the property is worth at present, how much you are going to spend on improving it, the end market value and any cashflow generated – then comparing it with similar properties.
In your case, you will need to ask the question of council as to what is permitted in zone 3 in your LGA. Ie are you zoned for medium density, multiple dwellings or only single houses with a granny flat?
You mention raising to legal level – I assume you mean raising the whole building so that the lower level will have a legal ceiling height – this can be quite expensive and there may be other alternatives or other issues that you may need to consider: eg excavation and restumping. You will also need to confirm whether you are in a flood zone (hence built up off the ground).
Thanks for your input, and sorry to take so long to respond
I am in a flood zone and can only go up.
With the "recession" I am very wary now.
Thanks again
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