I have an old villa in Caversham, Dunedin that has had a large amount of improvements done over the years-an extension to the front only 10 years ago so all new piles there, new roof, re-clad in plaster, updated kitchen nd bathroom ten years ago too, so we bought it like that two years ago and were aware of several problems. Now we no longer need the house we are trying to decide whether to fix said problems or sell it as is, we have already made some rather major improvements like moving the laundry into a cupboard and forming a fourth double bedroom. The main issues are a non-consented deck that is on rotting piles, that the real estate agent told us would be 4k to fix (naive first home buyers believed him) but is more like 10k if we do a lot of the work ourselves or 15-20k to get someone else to do it. Other issues are no off-street parking, (and not enough on street parking), a retaining wall on a lean and still a lot of repiling that needs doing, especially in the basement where it's very obvious the piles are all on packers. I have worked out that it would cost about 50k to build a driveway to a double garage underneath where the current deck is, and have a deck on top of the new double garage, one wall of which would be replacing the piles of the worst affected side/most obvious side of the house, and would also remove the leaning retaining wall, sorting out four issues in one hit-but this seems like a lot of over capitalising in a house worth about 240k which is already one of most expensive on the street. Any recommendations? We also won't be living in the house while this work is being done, we would do it over about 3 years and probably rent it out by the room and do the work during empty periods. I could probably at a stretch get the costs down to 40k.
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Expensive fix of issues on a Villa or sell as is?
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if it was mine i would flick it as it is, i have a house at the moment that has a non paying tenant in it thats going to get the flick when she carks or goes into a home, it needs a bit of work and its not really worth spending 30k on it to get 30 k more for it
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Thanks...I'm just concerned that as the retaining wall, deck and piles will be a minimum of 40k to fix they will deduct 40k from the price...whereas I could spend 40k to fix those issues PLUS get a double garage and extra OSP...the other plus with doing that is that the property is on a lot of land for the area, and may get rezoned to 'medium residential' in the 2GP in Dunedin-but to build
on that land and develop it I would have to do a whole lot of excavation on the property at the front where the driveway would go anyway to put services in to the land at the back. It's the land is the main reason I'm interested in holding on to it, I think its development potential if it gets rezoned is fantastic...just can't hold onto the land without the house for various reasons. If I did decide to do the improvements, would the costs be tax deductible? Do they still have that look-through company system where you can deduct costs and if you run at a loss you get tax back that you have paid as a salary earner? I am on a low income with student loan repayments for anything I earn over 19k, so if that is still the case it could make the argument for doing it better...unless of course they were looking at my husbands income too. (Or would that be better as he is on the highest tax bracket)?
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