Demolish & build on my investment property to live in?
Ok,
first post here & I'm total noob to investment property etc
First, my situation is this, I own a 2003 built 2 story house (~300m2) in Como Perth (reasonable suburb 5kms from city). Its only on a 300m2 block and is worth about 900k. I owe 400k on it.
my second house (investment property) is a 1955 built small 3x1 on 470m2 block in the same suburb.
Ive had it a couple of years, bought it at a reasonable price (very close to land value $560k & get $440 a week rent).
It is costing me nothing to own really (with the tax refund i get from it) although the mortgage is interest only - I'm only banking on capital growth & I just wanted to get my hands on some more land in this suburb - as I think it has good future potential (5 min walk to the train & 5km to cbd for example)
While floating around in a friends pool last weekend, I started thinking - why not sell my current house - walk with 450k or so - pay off most of the 600k rental mortgage with the 450k and borrow 450k to build the house i want on the bigger rental house block. (and have a bigger garden & pool for the kids!)
I've never built a house (all ways bought established), but this is my guestimate on costs.
$20k to demolish old place
$300k to build a 225m2 3x2 with study etc
150k to finish paying off the rental house
so, $450k to own a house worth 1.1m i would rekon.
does my guestimate seem reasonable?
thanks for reading
Ok,
first post here & I'm total noob to investment property etc
First, my situation is this, I own a 2003 built 2 story house (~300m2) in Como Perth (reasonable suburb 5kms from city). Its only on a 300m2 block and is worth about 900k. I owe 400k on it.
my second house (investment property) is a 1955 built small 3x1 on 470m2 block in the same suburb.
Ive had it a couple of years, bought it at a reasonable price (very close to land value $560k & get $440 a week rent).
It is costing me nothing to own really (with the tax refund i get from it) although the mortgage is interest only - I'm only banking on capital growth & I just wanted to get my hands on some more land in this suburb - as I think it has good future potential (5 min walk to the train & 5km to cbd for example)
While floating around in a friends pool last weekend, I started thinking - why not sell my current house - walk with 450k or so - pay off most of the 600k rental mortgage with the 450k and borrow 450k to build the house i want on the bigger rental house block. (and have a bigger garden & pool for the kids!)
I've never built a house (all ways bought established), but this is my guestimate on costs.
$20k to demolish old place
$300k to build a 225m2 3x2 with study etc
150k to finish paying off the rental house
so, $450k to own a house worth 1.1m i would rekon.
does my guestimate seem reasonable?
thanks for reading
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