You would widen your market if you freshened up the paint inside and fixed the roof. Investors can’t get a tax deduction for that work if it needs doing before they rent it. I would check with a couple of agents though.

Thanks Kate I was not aware of that info re investors. We like living here for now but don't want to spend money on it if we won't get it back when selling. However I agree that it would be wise to keep up with maintenance/painting so as to widen the market when selling.

If you are staying in the home for a while, then the tiles need replacing. You will have a lot more work to do if you have water damage from leaking roof tiles. Paint is not expensive. It is just the manual labour. So if you if you have time, I would do that also. Im intrigued as to where your real estate agent got their crystal ball from, to know that someone would knock down your home. Your home is a classic 1960 home, and a lot of people may be interested in keeping it.

Thanks dreamer for your helpful comments. I think we would need to get some further advice as suggested. Several quite liveable homes on large residential blocks in our immediate area have been bought and demolished. They were about the same age or a bit older than our house and probably considered small for this old established area (2-3 bedrooms, 1 bathroom). We are in southern highlands NSW and there is a lot of development happening in new subdivisions (big houses on smaller blocks).