Hi everyone,
I'm running out of paper in the office number crunching and writing the positives and negatives for either selling or developing my IP1
Looks like this
Value - $600k
Debt - $400k
equity - $200k
Rented @ 575pw after costs its roughly Neg CF by $80pw on 7% rates but after tax its $82.50pw +
Or
Build DA approved duplex that look like this ( note the loss of $200k equity)
Land value $400k
Build Contract $425k
Finish costs $125k
Total build $550k
Total Costs $950k
Sale price $650k x2 based on sales in the last 4 weeks 650k to 700k
Total Income $1.3mil
Profit $350k
My mental dilemma is yes the profit is higher, but I have to borrow a further $550k to build and only increase my return by $150k ???? It is a 27% return but I guess I'm getting a little cautious in my old age
I'm running out of paper in the office number crunching and writing the positives and negatives for either selling or developing my IP1
Looks like this
Value - $600k
Debt - $400k
equity - $200k
Rented @ 575pw after costs its roughly Neg CF by $80pw on 7% rates but after tax its $82.50pw +
Or
Build DA approved duplex that look like this ( note the loss of $200k equity)
Land value $400k
Build Contract $425k
Finish costs $125k
Total build $550k
Total Costs $950k
Sale price $650k x2 based on sales in the last 4 weeks 650k to 700k
Total Income $1.3mil
Profit $350k
My mental dilemma is yes the profit is higher, but I have to borrow a further $550k to build and only increase my return by $150k ???? It is a 27% return but I guess I'm getting a little cautious in my old age