Background:
PPOR - 430K + 30K (equity for IP#1)
IP#1 - Loan 360K + 120K (equity for IP#2)
Rent: $22421 pa gross
IP#3 - Loan 370K
Rent: 21900 pa gross
Income - 85K and savings 30k.
IP#1 is an existing house on 556sqm and believe it can be demolished and torrens subdivided into 2 lots. My next door neighbour has exact same size and type of land as mine and is currently getting redeveloped.
A 3 bedder townhouse sells for around 575k-600K at the moment.
His DA tracking displays this:
"Demolition of existing structures; construction of an attached 2 storey dual occupancy and Torrens subdivision into 2 lots.
Determination Details: Def Com Delegated"
I am not able to contact the neighbour to get the details on cost and plans.
I have not done any development before, but have been reading the posts related to it.
I will be tapping equity from PPOR. I am tossing between -
- Buying IP#3
OR
- Redeveloping IP#1
What sort of approx costs am I looking at to build two 3 bedders with average finishes?
Based on the info above, do you guys suggest going ahead with the redevelopment or buying another IP?
What other factors should I be looking into?
PPOR - 430K + 30K (equity for IP#1)
IP#1 - Loan 360K + 120K (equity for IP#2)
Rent: $22421 pa gross
IP#3 - Loan 370K
Rent: 21900 pa gross
Income - 85K and savings 30k.
IP#1 is an existing house on 556sqm and believe it can be demolished and torrens subdivided into 2 lots. My next door neighbour has exact same size and type of land as mine and is currently getting redeveloped.
A 3 bedder townhouse sells for around 575k-600K at the moment.
His DA tracking displays this:
"Demolition of existing structures; construction of an attached 2 storey dual occupancy and Torrens subdivision into 2 lots.
Determination Details: Def Com Delegated"
I am not able to contact the neighbour to get the details on cost and plans.
I have not done any development before, but have been reading the posts related to it.
I will be tapping equity from PPOR. I am tossing between -
- Buying IP#3
OR
- Redeveloping IP#1
What sort of approx costs am I looking at to build two 3 bedders with average finishes?
Based on the info above, do you guys suggest going ahead with the redevelopment or buying another IP?
What other factors should I be looking into?