Hi Everyone,
Well my partner and I recently decided to sell our PPOR. We had bought a house on a large block that had 2 titles. Was on the market for a while before we bought it due to a few tricky issues, but we worked through them - sold the land off and after sale of the house we made a total of $180,000 (minus RE fees) within 1.5 years. Not too bad. The reason we sold instead of renting it out was due to the house needing some costly repairs down the track and wanted to diversify investments to other areas. Still have one more IP which is performing quite well (just +ve geared, 330k Loan, 500k Val, $440pw ).
So currently looking into a property I found in an area in south west sydney. It's <500sqm block but has 2x 2bed 1bath Villas along with off street parking. It has been on the market for quite some time and looks like the vendors are 'motivated' to offload it. Has had price adjusted from $490, to $450 over the past 9 months - reason I believe is because the shower is in the kitchen and toilet is outside but I believe I may have a solution! As it currently stands, one side rents out to a resi tenant for $230 a week while the other is a commercial tenant at $300 a week. Apparently both are keen to sign onto long term contracts.
One reason I am particularly interested in this property, is that my father (55) is being moved out of his current unit in the same area and needs to relocate. He is on a disability pension and currently pay $230 a week rent and needs somewhere very long term. Was thinking this might be the perfect opportunity to put him up somewhere, manage his costs myself (no agent fees etc) and then have the other side rented out.
So what I am after is a bit of advice on a few things. Firstly, because one villa is being leased out as a commercial property this would restrict my borrowing capacity to commercial built loans? I plan on call my broker today to talk more about this. Secondly, what would you want to buy this particular property for to make it worth while? My gut feeling is that due to the fact that I don't believe it will have much capital gains built into it, a figure around the 400-410k would be reasonable.
Any thoughts or opinions would be much appreciated.
Well my partner and I recently decided to sell our PPOR. We had bought a house on a large block that had 2 titles. Was on the market for a while before we bought it due to a few tricky issues, but we worked through them - sold the land off and after sale of the house we made a total of $180,000 (minus RE fees) within 1.5 years. Not too bad. The reason we sold instead of renting it out was due to the house needing some costly repairs down the track and wanted to diversify investments to other areas. Still have one more IP which is performing quite well (just +ve geared, 330k Loan, 500k Val, $440pw ).
So currently looking into a property I found in an area in south west sydney. It's <500sqm block but has 2x 2bed 1bath Villas along with off street parking. It has been on the market for quite some time and looks like the vendors are 'motivated' to offload it. Has had price adjusted from $490, to $450 over the past 9 months - reason I believe is because the shower is in the kitchen and toilet is outside but I believe I may have a solution! As it currently stands, one side rents out to a resi tenant for $230 a week while the other is a commercial tenant at $300 a week. Apparently both are keen to sign onto long term contracts.
One reason I am particularly interested in this property, is that my father (55) is being moved out of his current unit in the same area and needs to relocate. He is on a disability pension and currently pay $230 a week rent and needs somewhere very long term. Was thinking this might be the perfect opportunity to put him up somewhere, manage his costs myself (no agent fees etc) and then have the other side rented out.
So what I am after is a bit of advice on a few things. Firstly, because one villa is being leased out as a commercial property this would restrict my borrowing capacity to commercial built loans? I plan on call my broker today to talk more about this. Secondly, what would you want to buy this particular property for to make it worth while? My gut feeling is that due to the fact that I don't believe it will have much capital gains built into it, a figure around the 400-410k would be reasonable.
Any thoughts or opinions would be much appreciated.
