I'm looking for ideas on increasing equity without major extending/renovating, (mainly due to small block of land and property is still new).... I purchased IP 2 in North Lakes, north of Brisbane last year. It was a 1 year old 4x2x2 house on a small block, (312 sqm) for 361K. I chose the location based on potential growth drivers - New Costco, Ikea and rail line being built, Stockland nearing the end of land releases after 10 years, low vacancy rates, good depreciation being a new house, and I believed the property itself to be slightly undervalued. I know land value is what drives capital growth but the aforementioned drivers, (to me anyway), still outweighed the small size block.
I am looking to purchase IP 3 and want to use equity for a deposit. IP 1 is in Emerald and only being purchased 12/18 months ago won't have have seen any growth in that current market. We used equity from our PPOR Suncorp loan to fund deposits for both IP's and whilst we still have a little equity available, with two young children and a wife working only one day a week, I'd rather have a buffer up my sleeve. My income is around 135K and the two IP's were 90 LVR's with CBA.
The location is near the new Costco and the same sort of place in the same street sold for 370K the same month we bought, (hence why I thought ours was slightly undervalued). I have now seen at number 6 in the same street a 3x2x2 and same size block for sale at 429K, (http://www.realestate.com.au/property-house-qld-north+lakes-115645663), which appears to look much the same as mine but with 3 bdrms and am wondering why it's listed so high... There's perhaps a few nicer touches like a little bit of decking but I can't see why it's so much more. There's also a new 4x2x2 on 325 sqm in a different estate at 429K, (I realise they may not actually sell for these amounts).
RP Data seems to have our place estimated between 275-350K, although CBA's "My Wealth" page has it at 342K but yet, RP Data's valuation of number 6 in the same street is much higher than mine and I can't see mine having increased from 361K in just 6 months with nothing done to it. I know RP Data can be hit and miss and depends on other sales but what can I do to increase it's value, given it's limited renovation potential?
I am looking to purchase IP 3 and want to use equity for a deposit. IP 1 is in Emerald and only being purchased 12/18 months ago won't have have seen any growth in that current market. We used equity from our PPOR Suncorp loan to fund deposits for both IP's and whilst we still have a little equity available, with two young children and a wife working only one day a week, I'd rather have a buffer up my sleeve. My income is around 135K and the two IP's were 90 LVR's with CBA.
The location is near the new Costco and the same sort of place in the same street sold for 370K the same month we bought, (hence why I thought ours was slightly undervalued). I have now seen at number 6 in the same street a 3x2x2 and same size block for sale at 429K, (http://www.realestate.com.au/property-house-qld-north+lakes-115645663), which appears to look much the same as mine but with 3 bdrms and am wondering why it's listed so high... There's perhaps a few nicer touches like a little bit of decking but I can't see why it's so much more. There's also a new 4x2x2 on 325 sqm in a different estate at 429K, (I realise they may not actually sell for these amounts).
RP Data seems to have our place estimated between 275-350K, although CBA's "My Wealth" page has it at 342K but yet, RP Data's valuation of number 6 in the same street is much higher than mine and I can't see mine having increased from 361K in just 6 months with nothing done to it. I know RP Data can be hit and miss and depends on other sales but what can I do to increase it's value, given it's limited renovation potential?