Demolish & build my investment property?

Demolish & build on my investment property to live in?

Ok,
first post here & I'm total noob to investment property etc :eek:

First, my situation is this, I own a 2003 built 2 story house (~300m2) in Como Perth (reasonable suburb 5kms from city). Its only on a 300m2 block and is worth about 900k. I owe 400k on it.

my second house (investment property) is a 1955 built small 3x1 on 470m2 block in the same suburb.
Ive had it a couple of years, bought it at a reasonable price (very close to land value $560k & get $440 a week rent).

It is costing me nothing to own really (with the tax refund i get from it) although the mortgage is interest only - I'm only banking on capital growth & I just wanted to get my hands on some more land in this suburb - as I think it has good future potential (5 min walk to the train & 5km to cbd for example)

While floating around in a friends pool last weekend, I started thinking - why not sell my current house - walk with 450k or so - pay off most of the 600k rental mortgage with the 450k and borrow 450k to build the house i want on the bigger rental house block. (and have a bigger garden & pool for the kids!)

I've never built a house (all ways bought established), but this is my guestimate on costs.

$20k to demolish old place
$300k to build a 225m2 3x2 with study etc
150k to finish paying off the rental house

so, $450k to own a house worth 1.1m i would rekon.

does my guestimate seem reasonable?

thanks for reading
 
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I suppose to summarize, where is a good place to start with a feasibility study on developing my IP to be my PPOR?

I just want to know what the building envelopes/setbacks would be for the boundaries of the R20/R30 460m2 block.

thanks
 
I suppose to summarize, where is a good place to start with a feasibility study on developing my IP to be my PPOR?

I just want to know what the building envelopes/setbacks would be for the boundaries of the R20/R30 460m2 block.

thanks

For zoning I recommend start looking at your sales contract and the annex should provide info.

Then look at the council web site for a DCP and LEP for frontage and setback, etc to find out the building envelope.

This is what I learnt so far to contribute Back to the forum.
 
DCP & LEP?

i cant seem to find them in the FAQ/TLA section.

I've got a block plan (1000km away at home), so I'm going to draw that up on CAD and have a play when I get home this weekend.

thanks!
 
DCP & LEP?

i cant seem to find them in the FAQ/TLA section.

I've got a block plan (1000km away at home), so I'm going to draw that up on CAD and have a play when I get home this weekend.

thanks!

The above post from bg does not apply to wa.

So have a look at the r codes 3.1. You will need an open space of about 45% which can incl alfrescos, porticos etc if they fit in the rules..

Also check comos town planning scheme to see exactly what is required to be eligable for the density bonus/ dual code of R30.

Seems like a good way to get your dream ppor in your chosen suburb.

Will you be going single or double story?
 
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Very doable but I think you need to allow more money for the new house especially if you want to add a pool.

I'd be allowing around $400k to build and up to $100k for landscaping, pool etc
 
So bought for 560k and wanting to put another 500k to build a 3x2 house to have an end value of 1.1m (haven't looked if there are comparables worth this in Como)
Is it really worth it? You're really not creating any equity by doing this, and I honestly don't think a 3x2 in como is going to fetch more than 1.1 (if it will now in the near future??)

I can understand why you'd do it if you loved the area the area and wanted to make it a PPOR but for an investment imo it doesn't sound worthwhile..


EDITTTT: Didn't read you were deciding to make this your PPOR, all good then :p
 
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Very doable but I think you need to allow more money for the new house especially if you want to add a pool.

I'd be allowing around $400k to build and up to $100k for landscaping, pool etc
hmm, thats a fair bit more than i was hoping.

we just want a small pool - plunge type

thaks for the input, I appreciate it
 
hmm, thats a fair bit more than i was hoping.

we just want a small pool - plunge type

thaks for the input, I appreciate it

Ok if you go single storey - I just read above post and not excessive pool then $300k will go pretty far. I'd spend about $250k on a 225sqm house turnkey finished and then some landscaping and pool.
 
So bought for 560k and wanting to put another 500k to build a 3x2 house to have an end value of 1.1m (haven't looked if there are comparables worth this in Como)
Is it really worth it? You're really not creating any equity by doing this, and I honestly don't think a 3x2 in como is going to fetch more than 1.1 (if it will now in the near future??)

I can understand why you'd do it if you loved the area the area and wanted to make it a PPOR but for an investment imo it doesn't sound worthwhile..


EDITTTT: Didn't read you were deciding to make this your PPOR, all good then :p

yeah 500k spend does not sound good - I've never built so I have no idea on costs.

I see new houses advertised in the smaller size i want for around 250, so I thought 300k would get me something nice, leave room for the pool & do it later.

plenty of homes around como in that range i think, ive been watching the area closely for years.

thanks for your thoughts, I appreciate all opinions!
 
understood, I've got QLD black butt all thru my current house & its a pain in the butt....
reasonable ceramic tiles & carpet will do just fine.

one thing I would hate to leave behind tho is my 23 solar panels & the 47c per kW/hr the govt gives me :eek:
 
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