I currently have a property in Gladesville the inner north-west of Sydney, 10km from the CBD. It's a 4 double bedroom fibro house with a granny flat out the back. On a 700m block, decent enough house... But lets face it, it's nothing flash, kitchen and bathroom are aging. It's nearly a century old and single storey, flanked on both sides by double storey duplexes which are relatively new, and new houses are popping up and down the street. Though it is much nicer than this house, which had the locals stunned: http://www.propertyobserver.com.au/...t-way-below-actual-selling-prices-realas.html
A change in recent family circumstances means a sale is inevitable. Which got me thinking about how I can best capitalize on this. I'm considering spending up to $450k to knock down and rebuild (~180sq 4 bdrm, 2 bath, double storey, LUG, landscaping etc) Then immediately or very soon after put it to market, hopefully for well in excess of $3m.
Realistically this means that I would be paying anywhere from $300 - $400 per week (depending on how much I need to borrow) to service a loan for potentially up to 9 months until the house is sale ready. That's do-able, just, but I would be living on a very tight budget.
My biggest risk would be that I could run out of money before the project is completed. That would be worst case scenario.
A smaller risk, but one worth considering is that I could make a smaller profit once I've paid off the loan compared to if I had have just spent say $50 or $100k on renovations and saved a lot of headache. Or even sold it as is, but with a DA approval.
So I suppose my questions are:
What would you do in my position?
Do the sale of brand new homes work in favor of vendors or are buyers wary of them? (costs being cut etc)
Whom could I speak to to get professional advice on my options? I presume the first step is I should have the property valued as it is. Do property valuers offer hypothetical valuations in addition to "as-is"?
Cheers
A change in recent family circumstances means a sale is inevitable. Which got me thinking about how I can best capitalize on this. I'm considering spending up to $450k to knock down and rebuild (~180sq 4 bdrm, 2 bath, double storey, LUG, landscaping etc) Then immediately or very soon after put it to market, hopefully for well in excess of $3m.
Realistically this means that I would be paying anywhere from $300 - $400 per week (depending on how much I need to borrow) to service a loan for potentially up to 9 months until the house is sale ready. That's do-able, just, but I would be living on a very tight budget.
My biggest risk would be that I could run out of money before the project is completed. That would be worst case scenario.
A smaller risk, but one worth considering is that I could make a smaller profit once I've paid off the loan compared to if I had have just spent say $50 or $100k on renovations and saved a lot of headache. Or even sold it as is, but with a DA approval.
So I suppose my questions are:
What would you do in my position?
Do the sale of brand new homes work in favor of vendors or are buyers wary of them? (costs being cut etc)
Whom could I speak to to get professional advice on my options? I presume the first step is I should have the property valued as it is. Do property valuers offer hypothetical valuations in addition to "as-is"?
Cheers