Choosing between two properties

[Michael Kelly]

Hi Everyone,

My wife and I are looking for our first investment property, we have enough equity in our own home to spend around 250k.

The two we are trying to choose between at the moment are:

http://www.realestate.com.au/property-house-wa-beachlands-115255251
This is a corner block that may fit 3 small units on it in the future but the house either needs substantial renos or be demolished.

http://www.realestate.com.au/property-house-wa-beachlands-114589107
This one is in much better condition so the house could be kept as a rental with a few small renovations, we should be able to fit one battleaxe block out the back.

We are planning to rent it out for a while then subdived and sell the existing house or blocks and keep a small block for ourselves to build a new 3x2

Any advise on which is the better investment would be great?

 

[Michael Kelly]

Also the first property on the corner block, the owner is keen to sell and our realestate agent thought that we may get it for around 200k but the second our agent thinks wont drop the price as much

Cheers

 

[Wirra436]

Hey Michael,

Congrats on starting you investment journey

I suppose the question I pose is why have you chosen this region of WA?

Is it because you have done research and found this area will provide a great investment or do you live in the area and its within your comfort zone to buy there?

Aslong as youve done your research either should be a good investment.

Good Luck !

 

[Michael Kelly]

Hey Michael,

Congrats on starting you investment journey

I suppose the question I pose is why have you chosen this region of WA?

Is it because you have done research and found this area will provide a great investment or do you live in the area and its within your comfort zone to buy there?

Aslong as youve done your research either should be a good investment.

Good Luck !

Thanks Wirra,

I do live near (other side of Geraldton) but I think the area has alot of potential, It is one of the cheaper areas in town but it is very close to the town centre and beach. also lots of the old houses have been knocked down over the past year or two and new houses & units are being built making the neighbourhood much nicer than it used to be.. also the R15/40/50 zoning means that these 700 - 800m2 blocks can be developed..

Cheers

 

[Michael Kelly]

Any idea on wheather or not a corner block is worth much more for the development potential, I would of thought that each block having street frontage instead of a battleaxe type arrangment would add value to the blocks? just need to decide if the poor condition corner house is a good decision because of the value in the land..