10 years to retirement - Ideas / Suggestions

[Guson]

Retirement 10 years away.

We want to fast track in that 10 years. (don't we all )

Ideas - Suggestions

We have PPOR value $520,000 Mortgage $157,000
Possible redevelopment site, 810 sq/m, would fit possible 4 x 3bed townhouses. Corner block, nice views, close to everything.

IP 1 Unit - 2 bed Value $290,000 owe $215,000 Rent $270 to relative, could get $350 but happy with arrangement for another year at least.

IP 2 House on 810sq/m rent $390 pw, looking to subdivide back half next year and build 3 bed 2 bath to either move into or rent $450pw. New build cost $250,000 / $300,000

Options
Could rent PPOR for $550pw and move into new build mentioned above
Stay where we are and rent new build.


Super $190,000
Income $150,000

What's the best plan of attack do you think?

 

[mattnz]

Development should be a great option if the figures stack up. Have a read of this great article on not being seen by ATO as being a developer
http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf

 

[Aaron_C]

Not sure how you would fit 4 x 3 br townhouses on 810 sqm but assuming you can it might be a good idea to start.

The main thing about 'retiring' is to have a significant asset base to provide you with passive income. Development of your block might give that to you - but you would probably need to build 4 units, then keep 3 if possible to rent outt. But whether you can afford to do that depends on your financial situation.

 

[The Y-man]

What's the best plan of attack do you think?

First step as I see it is to figure out the risks.

Quite simply: if things don't go to plan with the project, are you (and partner etc) willing to wear the consequences? What will you do to mitigate the risks? (i.e. plan b?)

The Y-man

 

[spludgey]

Have a look into a SMSF if you feel that way inclined. You should be able to purchase a couple of CF+ properties with your super.

 

[SilverEagle]

Thanks Mattnz,this was a nice piece of info

Cheers

SilverEagle

 

[Guson]

Not sure how you would fit 4 x 3 br townhouses on 810 sqm but assuming you can it might be a good idea to start.

The main thing about 'retiring' is to have a significant asset base to provide you with passive income. Development of your block might give that to you - but you would probably need to build 4 units, then keep 3 if possible to rent outt. But whether you can afford to do that depends on your financial situation.

You don't think 4 would fit?
I really have no idea just thought 200sq/m each was quite a lot in area for 2 story units, just pondering at this stage. How much should be allowed in footprint per unit? (roughly)

I am tossing up all options at this point to make the most of the next 10 years. I love living where I do but if it gives us better options to move to a smaller 3 bed new build, we are prepared to do that, less money tied up in PPOR, and bonus would be low maintenance garden.

Thanks for the other suggestions. My brain is constantly ticking over ideas.

Thanks for the link mattnz, I'll have a read of that, looks interesting, could come in handy down the track.

I will save it to evernote, my latest find for hoarding info and ideas. Great site I recommend.
http://www.evernote.com/about/home.php

 

[YPG]

You don't think 4 would fit?
I really have no idea just thought 200sq/m each was quite a lot in area for 2 story units, just pondering at this stage. [/url]

Not sure where you live, but in Brisbane and Gold Coast I've seen plenty of DAs approved for 4 townhouses on 800 sqm. I find that generally 200sqm per town house is a good indicator of how many town houses you can fit etc. Being a corner block is especially helpful too

Obviously other factors like zoning density, street frontage, slope of site, easements, other constraints, etc.

A lot of medium zoning density in Brisbane/GC is 1 dwelling per 200 or 250 anyways. But this doesn't necessarily mean because your dwelling is 800 you can definitely fit 4 on - still need to produce good design and address issues like visitor parking, car movements, etc.

But I don't think you would have a problem with fitting 4x3bed double storey townhouses on 800sqm if it was recognised as an area fit for that kind of density by council. You most likely won't be able to get 2 parks for each though maybe for only 1 or 2 of them.