Renovate or Not

Hello Everyone

I'm new to this forum. I've been investing for around 4 years.

I wanted to know your personal opinion on this.

We own a 2 story-semi on a nice location.
Near the beach and amenities in Sydney.
Property is rented. Rental return is around 4.5%. Its 100% investment.
Semi sits on a 300m2 land. Got garden. Not too bad for its location.
Currently some ocean glimpses from kitchen and living windows.
No terrace.

Would you renovate this semi:

- Go up, add a 3rd level (level up will have ocean views)
- Add a terrace or two terraces with views

Investment would be around $300k+, I could increase rent by another $500-$600 a week. I think value would increase more than $300k.
But no rent for 4 months.

Or, leave it as it is and find a new property with those $300k deposit.

Question is, is it smart to renovate investment properties?

Thanks a lot in advance

Renovate or Not