Hi there, been reading up on property and stumbled across this forum. Im sure what im about to ask isnt new to you guys here, so i was hoping i could get some advice on what to do.
So a little background on my situation, Ive got a property in Parramatta region that I bought back in 2003 (pretty much the height of the boom for that area cos its still worth roughly the same amount).
Property is a 3 bedder house on a corner block with 650sqm, currently rented out at 430pw.
My intention has always been to do something to it, mainly knock it down and rebuild as 3 houses on it, live in one and rent out the other two. 6.5 years on, nothing has been done.
Anyway, the land is 15.24 x 42.65, so the ideally i want to build a house that isnt very deep so that i can maximise the street frontage, this way it becomes two free standing houses, each with their own street frontage.
I found something on Masterton's website (Accent Mk2) where the width is 12.16 and the depth is 10.365.
Off memory, i think the distance I must have between the fence and the house must be 1.5m, with the side facing the street having a gap of 3m. Based on that i think the depth of this house just fits within the council requirements.
My main reasons for doing this are:
1. I believe the rent i can achieve based on the market is $500+ (im renting out a crappy 3 bedder house built in the 1950's for $430 pw).
2. The rental income should cover the interest on the loan (provided i spend less than $300k)
3. If i spend less than $250k, this will make the overall property positively geared as the property is currently neutrally geared.
My concerns are:
1. Will my existing tenant get upset and move out?
2. Do I need to reduce their rent (i assume so as Im taking away their garage
3. Will my rental income on the existing property be substantially reduced as the land size is halved and there wont be a garage anymore.
4. How long does this building normally take?
5. Do I have to subdivide? I dont like the idea of paying Sydney Water twice and Parramatta Council rates twice.
6. Ive got a massive tree (6m tall) that ideally I would like to remove in this process.
Any hints and tips or reasons to why my idea is stupid are welcome
So a little background on my situation, Ive got a property in Parramatta region that I bought back in 2003 (pretty much the height of the boom for that area cos its still worth roughly the same amount).
Property is a 3 bedder house on a corner block with 650sqm, currently rented out at 430pw.
My intention has always been to do something to it, mainly knock it down and rebuild as 3 houses on it, live in one and rent out the other two. 6.5 years on, nothing has been done.
Anyway, the land is 15.24 x 42.65, so the ideally i want to build a house that isnt very deep so that i can maximise the street frontage, this way it becomes two free standing houses, each with their own street frontage.
I found something on Masterton's website (Accent Mk2) where the width is 12.16 and the depth is 10.365.
Off memory, i think the distance I must have between the fence and the house must be 1.5m, with the side facing the street having a gap of 3m. Based on that i think the depth of this house just fits within the council requirements.
My main reasons for doing this are:
1. I believe the rent i can achieve based on the market is $500+ (im renting out a crappy 3 bedder house built in the 1950's for $430 pw).
2. The rental income should cover the interest on the loan (provided i spend less than $300k)
3. If i spend less than $250k, this will make the overall property positively geared as the property is currently neutrally geared.
My concerns are:
1. Will my existing tenant get upset and move out?
2. Do I need to reduce their rent (i assume so as Im taking away their garage
3. Will my rental income on the existing property be substantially reduced as the land size is halved and there wont be a garage anymore.
4. How long does this building normally take?
5. Do I have to subdivide? I dont like the idea of paying Sydney Water twice and Parramatta Council rates twice.
6. Ive got a massive tree (6m tall) that ideally I would like to remove in this process.
Any hints and tips or reasons to why my idea is stupid are welcome