Hi, I am sorry to bother you all, I am constantly lurking on this site but have no experience with investments as yet so I hope you dont mind me asking a question or 2?
A bit of background, We 'nearly' purchased our first IP last year but pulled out at the last minute as my husband was offered a share in the business he works for, and the monthly dividends recieved were too good to knock back. Unfortunatley we would not have been able to service both the business and the IP loans.
12 months later we start thinking about IP's again and at the same time our elderly neighbour passes away. We have been given the option to purchase the property at land value (420k, for a 1100sqm duplex block) with the old concrete house as a bonus. The house is only 2 bedrooms, but we can possibly turn the sleepout into a 3rd bedroom. Hoping to receive $300 a week rent.
Our house is 60sqm short of being a duplex block, we are on a corner block with her property next to ours. Oh, and this property is in Perth, 8 kms from the city. Our longterm plan would be to knock down both houses and build 4 new houses, maybe even 5 if the zoning changes in that time.
We cannot afford to purchase this ourselves and my dad is very interested in going halves with us. I am thinking this would mean we both loan (approx) $250k each to cover the purchase price, fees, a small reno, and have money left over to cover interest, rates etc.
If you have managed to read this far here are my questions.
1. IS it possible to loan the extra money to cover the repayments for that first year, more?
2. If not, and our loan repayments are for example $2000 a month and we are only getting $600 a month rent we have to come up with the extra $1400 how much should we expect to claim back to cover our repayments the following year?
I guess what I am really asking is at the end of the financial year how much is this property 'really' costing us in dollar figures?
Is there anyone out there who can offer any advice?
Christine
A bit of background, We 'nearly' purchased our first IP last year but pulled out at the last minute as my husband was offered a share in the business he works for, and the monthly dividends recieved were too good to knock back. Unfortunatley we would not have been able to service both the business and the IP loans.
12 months later we start thinking about IP's again and at the same time our elderly neighbour passes away. We have been given the option to purchase the property at land value (420k, for a 1100sqm duplex block) with the old concrete house as a bonus. The house is only 2 bedrooms, but we can possibly turn the sleepout into a 3rd bedroom. Hoping to receive $300 a week rent.
Our house is 60sqm short of being a duplex block, we are on a corner block with her property next to ours. Oh, and this property is in Perth, 8 kms from the city. Our longterm plan would be to knock down both houses and build 4 new houses, maybe even 5 if the zoning changes in that time.
We cannot afford to purchase this ourselves and my dad is very interested in going halves with us. I am thinking this would mean we both loan (approx) $250k each to cover the purchase price, fees, a small reno, and have money left over to cover interest, rates etc.
If you have managed to read this far here are my questions.
1. IS it possible to loan the extra money to cover the repayments for that first year, more?
2. If not, and our loan repayments are for example $2000 a month and we are only getting $600 a month rent we have to come up with the extra $1400 how much should we expect to claim back to cover our repayments the following year?
I guess what I am really asking is at the end of the financial year how much is this property 'really' costing us in dollar figures?
Is there anyone out there who can offer any advice?
Christine