Hi, my name is William and I am hoping to get some advice and direction with property investment. I'm fairly clueless in terms of anything with real estate.
A bit about me:
• I am 23 years old age and recently graduated from university
• Family members: currently live at home with mother and younger brother
• Income;
o Myself: No income currently on the dole, but hopefully will land a graduate job soon @ aprox. 40-50k p.a
o Mother: approx 20k p.a. Wants to retired soon due to age and medical problems.
• Current assets: current home in sunshine north (3020), and plot of land also in sunshine north (3020). Mortgage: zero
So here is the gist, my mother wants to retire and was thinking of selling our current home and build a new house on our plot of land. However, I feel that it would be a waste to a possible investment opportunity.
From my understanding my current suburbs value is on the rise. In addition, student accommodation is on a shortage due to our recent boom in education exports.
My proposal is to build towns houses on our current home, and over time use the money build/pay back for the town houses and a new house on our empty land. My current home is situated on a main road next to a McDonalds (2nd house away from it). There is also back street access. I believe my current home is long enough and accommodate up to 3 town houses.
Doing the math, to develop 3 town houses will cost about $400k?, average rent is about $165 per week, so that works out to be a return of $102,960 p.a. so that can pay off the town houses in 4 years or so. I will be the only person working but hopefully we can get a lone using our properties.
Furthermore, in the future if possible purchase my neighbours property (one in between my house and maccas) and developed there also. Not to be disrespectful or anything, but my neighbour is also ageing and possibly pass away soon.
So that’s my 2 cents. Is that a good idea or am I dreaming? Advice and direction would be much appreciated.
Cheers,
William
A bit about me:
• I am 23 years old age and recently graduated from university
• Family members: currently live at home with mother and younger brother
• Income;
o Myself: No income currently on the dole, but hopefully will land a graduate job soon @ aprox. 40-50k p.a
o Mother: approx 20k p.a. Wants to retired soon due to age and medical problems.
• Current assets: current home in sunshine north (3020), and plot of land also in sunshine north (3020). Mortgage: zero
So here is the gist, my mother wants to retire and was thinking of selling our current home and build a new house on our plot of land. However, I feel that it would be a waste to a possible investment opportunity.
From my understanding my current suburbs value is on the rise. In addition, student accommodation is on a shortage due to our recent boom in education exports.
My proposal is to build towns houses on our current home, and over time use the money build/pay back for the town houses and a new house on our empty land. My current home is situated on a main road next to a McDonalds (2nd house away from it). There is also back street access. I believe my current home is long enough and accommodate up to 3 town houses.
Doing the math, to develop 3 town houses will cost about $400k?, average rent is about $165 per week, so that works out to be a return of $102,960 p.a. so that can pay off the town houses in 4 years or so. I will be the only person working but hopefully we can get a lone using our properties.
Furthermore, in the future if possible purchase my neighbours property (one in between my house and maccas) and developed there also. Not to be disrespectful or anything, but my neighbour is also ageing and possibly pass away soon.
So that’s my 2 cents. Is that a good idea or am I dreaming? Advice and direction would be much appreciated.
Cheers,
William