Build or sell!?

[SOULFLY3]

Hey ppl,
In a bit of a pickle..
I have a block of land in Raymond Terrace (600sq wide frontage)

The idea was to build a 3 2 & 1 house
And a 60sq granny flat

With proposed rent of $360 & $220
And have been quoted 250k turn key for this project
Fenced and completely separate.

But my only worry is if the granny flat doesnt rent or
Is rented off and on, it will defeat the purpose of the aim
Casf flow+

This would be my first build what do you think?

Build house + gf
Build just the house 150k cost
Sell the block as its costing me 6k to hold a yr..

Thanks!

 

[srini]

I don't know the area you are talking about. So, here are some questions.

What does your market research show? Maybe you can talk to some agents on the ground and get their opinion.
Are there similar properties in the area? How have they performed and how does yours compare?

 

[Justa housewife]

Why not Vendor Finance the house ?

If you built a 3x2x2nhouse and sold on an Instalment Contract it would very definately be cash flow positive and the buyer would pay all the outgoings.

 

[Propertunity]

But my only worry is if the granny flat doesnt rent or Is rented off and on, it will defeat the purpose of the aim Casf flow+

Build it and they will come .

G/Flats always rent. If anything it is the house tenants that can be a but harder to find in this scenario. But rents are tight - anything will rent for the right money.