Advice on IP purchase

[UrbanPlanner]

Looking for the educated and experienced people on SS to tell me if i'm on the right track and if I've missed anything.

Tossing up whether to purchase one or both sides of a duplex. Agent asking $375 each, however i believe they're worth max $360k as they are only 2x1 and thats in line with other sales in the area (if we bought both the max we would go would be $690k as this would stretch the LVR to the max). Both could rent for $375-$400pw.

Aside from the IO mortgage repayments (incl Stamp Duty and all other fees), Council rates, insurance, PM fees (we would most likely self-manage to start), are there any other fees I need to consider. If we were to put say $1k deposit to secure the contract of sale, would this need to come out of our pocket?

The reason we are considering both sides is that the entire front yard (about 300sqm) is currently common property and some simple land reallocation would allow this to be split up and allocated exclusively to each duplex.

Thanks in advance

 

[tobe]

The reason we are considering both sides is that the entire front yard (about 300sqm) is currently common property and some simple land reallocation would allow this to be split up and allocated exclusively to each duplex.

Thanks in advance

I wouldnt think having a seperate front yard would add much value. Enclosed back yard/courtyard, maybe.

 

[UrbanPlanner]

i should probably clarify (rightly or wrongly), my thought process with reconfiguring the land allocation at the front, would be the ability to sell one/both later as a duplex with 400sqm of land (currently only 250sqm). and with the land reallocation i would construct another driveway so they both have their own and possibly a carport for each.

do you think this would add value?

mods, this should have probably been posted under Buying/Selling instead so feel free to move it.

 

[tobe]

maybe, whats the costs to do the subdivision/land reallocation?

Extra yard is pretty hard to value I reckon. extra car space/garage yes, extra living space certainly, but just a little extra mowing? not sure.

It would depend on the area etc, but i doubt anyone in the market for a 2 bed townhouse would pay a lot extra for a bit of extra land. it still has shared party walls, body corp etc with the neighbour.

 

[Brady]

You mentioned that $360k was inline with similar sales.

Are there any sales with extra carport etc like you are planning. Did they have a higher sale price?


If your buying both from the same vendor I would be waiting a slight discount on both, just because I'm buying both... maybe thats just me

 

[UrbanPlanner]

maybe, whats the costs to do the subdivision/land reallocation?

Extra yard is pretty hard to value I reckon. extra car space/garage yes, extra living space certainly, but just a little extra mowing? not sure.

It would depend on the area etc, but i doubt anyone in the market for a 2 bed townhouse would pay a lot extra for a bit of extra land. it still has shared party walls, body corp etc with the neighbour.

I wouldnt imagine the actual land reallocation would be more than $2-4k as i would be able to do most of the paperwork. Then another $1-2k to actually construct another driveway to create additional bays. Not sure about the price of carports.