We are currently looking at a 2 titled block, house on one side and half vacant block on the other. Overall there is a total of 1400sqm and it's selling at land value after not being able to sell for 6 months. We now know why it hasn't sold and we are currently working through how to solve this issue!
Opinions on what options we could do.
Total Cost: 560k
House Value: 400k
Land Value: 260k
Firstly, my partner and I would like to move into the house. It's in a spot that we are happy with and would like to spend the next 5-10 years. So it's going to be renovated, eventually rented when we move on. It's mainly what we should do with the land.
Option 1:
- Sell land
- Pay capital gains tax
- Reduce loan to low 300k
- Use equity to allow for renovations and getting into next property.
Option 2:
- Land has shed on it that has power
- Rent out for storage of trucks and equipment - previously used as this. ($pw unsure)
- Use to help pay for loan and eventually build house, sell or rent out house.
- New houses in area on similar blocks selling for 500k+
Option 3:
- Minimal Renovations
- Rent out house (Estimated $430-450pw)
- Rent out block next door ($pw unsure)
- Keep and hold and use for development down the track
Any other ideas would be more then welcome!
On the upside as well, I am able to get my owner builders license. Plus have access to excavation machinery (father in law) + surveyor (father) + plumbers (myself + friends)
Opinions on what options we could do.
Total Cost: 560k
House Value: 400k
Land Value: 260k
Firstly, my partner and I would like to move into the house. It's in a spot that we are happy with and would like to spend the next 5-10 years. So it's going to be renovated, eventually rented when we move on. It's mainly what we should do with the land.
Option 1:
- Sell land
- Pay capital gains tax
- Reduce loan to low 300k
- Use equity to allow for renovations and getting into next property.
Option 2:
- Land has shed on it that has power
- Rent out for storage of trucks and equipment - previously used as this. ($pw unsure)
- Use to help pay for loan and eventually build house, sell or rent out house.
- New houses in area on similar blocks selling for 500k+
Option 3:
- Minimal Renovations
- Rent out house (Estimated $430-450pw)
- Rent out block next door ($pw unsure)
- Keep and hold and use for development down the track
Any other ideas would be more then welcome!
On the upside as well, I am able to get my owner builders license. Plus have access to excavation machinery (father in law) + surveyor (father) + plumbers (myself + friends)
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