This question has been discussed a few times in this forum. Currently the Sydney market is a little hot at the moment and although Id like to buy another property Im not sure its the right time now. I am chasing capital growth, however do like the security of a good yield.
If I buy another property Ill be hit with more land tax also. Need to weigh up the options of building a granny flat or buying another property. I rode the cycle last property with my granny flat build and it's done me well.
Granted I could have bought 2 properties back then but didnt want the risk.
Here are the details for the current purchase
Property bought for 440K (90% NO LMI loan, Westpac)
20K renovation
Rent: $450/week
90-100K equity currently remaining for use for new purchase or GF build.
Campbelltown area: I estimate the GF to add 70-80K value to the property.
If I build the granny flat, (lets say 95-100K)
Rent: $400/week
If I am able to do some sort of construction loan for the granny flat then that would be perfect. However, I doubt this will be the case and have been considering just building the granny flat with my remaining equity.
Even if I did build the granny flat I'm sure a valuation after the build would still give me enough equity for a new purchase.
The other alternative was to use the 90K as a deposit for another property and eventually build 2 granny flats on the back of both with the equity gain over time.
Thoughts?
If I buy another property Ill be hit with more land tax also. Need to weigh up the options of building a granny flat or buying another property. I rode the cycle last property with my granny flat build and it's done me well.
Granted I could have bought 2 properties back then but didnt want the risk.
Here are the details for the current purchase
Property bought for 440K (90% NO LMI loan, Westpac)
20K renovation
Rent: $450/week
90-100K equity currently remaining for use for new purchase or GF build.
Campbelltown area: I estimate the GF to add 70-80K value to the property.
If I build the granny flat, (lets say 95-100K)
Rent: $400/week
If I am able to do some sort of construction loan for the granny flat then that would be perfect. However, I doubt this will be the case and have been considering just building the granny flat with my remaining equity.
Even if I did build the granny flat I'm sure a valuation after the build would still give me enough equity for a new purchase.
The other alternative was to use the 90K as a deposit for another property and eventually build 2 granny flats on the back of both with the equity gain over time.
Thoughts?