I have an IP in the north western suburbs of Melbourne which has been performing okay, but not great, and initially I was tempted to sell it recently but have decided to keep it for another couple of years and re-assess it then.
It's one of the very few properties in the area that doesn't have a garage (or carport or any under cover parking), although it does have the space for it, so there are a few options I'm considering:
1. Leave it as is.
2. Have a garage built now. It's vacant at the moment but it will be on the market again this week so tenants would need to be agreeable to work being done.
3. Wait until I decide to sell the property, and have it built just before it goes on the market.
I would guess the property is currently worth around $375k, and I'm conscious of not over-capitalising, but there's no doubt it would add value to the place, I just don't how much, and I have no idea how much it would cost to build.
If I did decide to do it now, I would look to finance most or all of the cost if the bank will lend me the money, maybe add it on to the existing loan. That way I can claim the interest and I assume I could also claim depreciation on the building cost.
Any thoughts or comments?
It's one of the very few properties in the area that doesn't have a garage (or carport or any under cover parking), although it does have the space for it, so there are a few options I'm considering:
1. Leave it as is.
2. Have a garage built now. It's vacant at the moment but it will be on the market again this week so tenants would need to be agreeable to work being done.
3. Wait until I decide to sell the property, and have it built just before it goes on the market.
I would guess the property is currently worth around $375k, and I'm conscious of not over-capitalising, but there's no doubt it would add value to the place, I just don't how much, and I have no idea how much it would cost to build.
If I did decide to do it now, I would look to finance most or all of the cost if the bank will lend me the money, maybe add it on to the existing loan. That way I can claim the interest and I assume I could also claim depreciation on the building cost.
Any thoughts or comments?