Fredo starting again

[fredo]

Some advice will be greatly appreciated
I have come through the courts with $100,000
My thoughts are to buy a block of land in Croydon and put a simple Pioneer/Devine home on it hold for 12 months and sell
This will be my principal place of residence so no CGT
I would look to repeat the process again

Land value -$110,000.00
Aqusition costs -$3,300.00
House Deal -$129,000.00
Relocations -$1,100.00

-$243,400.00

I will rent during construction say $10,000
Disposal costs on sale should see me with $25,000 that I would not be able to accumalate otherwise

I would consider using $70,000 as a deposit on the land and keep some reserves

Are there any basic floors or advice you would offer
Thanks in anticipation
Fredo

 

[beech]

Fredo,check out the Barrett Properties/Porter Davis homes displays.

Their designs and price have no comparison at the moment i believe.

 

[fredo]

Beech thanks I have checked porter davis before and know their quality
unfortunatley the dont build below 25 squares

i am in the 15 squate market to start with thanks again

 

[Kristine..]

Hi Fredo

Starting over is a big step however you have the opportunity to maximise that $100,000 to best advantage.

I am wondering however whether building is the going to offer you the most advantageous plan of action right now.

All that effort for an anticipated $25,000 ‘profit’ just to do it all again.

What are your long term goals and objectives? This is more important than to just decide on a course of action, so let me be Devil’s Advocate and make a few suggestions based on the assumption that you aim to be wealthy in the long term.

Your $100,000 could buy you two modest properties in Croydon right now or possibly three depending on your available income.

This would involve borrowing about $265,000 and include all stamp duties and other fees and charges.

One to live in and possibly work on while you live there. Redecorating only, no major renovations. Keep costs to a minimum.

One to rent out.

Once the first one is presented really well and will rent for a premium, look for your third.

I think you once mentioned that you have a Westpac professional package so your finance shouldn’t be a problem.

Within three years you could have five to seven properties if you want to.

Keep it simple. Don’t get sidetracked with grandiose schemes. Only start that which you can finish within a brief time and with minimal cash outlay.

By the time you get development plans approved and pay your own rent then fiddle about getting something built plus all the costs for curtains, landscaping etc you could have bought two established properties and the tenants would already be sitting down to tea and paying rent and you would be off inspecting the third property.

There are some good buys about in Croydon right now. I inspected two last week either of which would be OK if I was buying right now (I am looking for someone else), and I’m off to inspect another three tomorrow.

Like mushrooms, bargains are there you’ve just got to know where to look.

Cheers

Kristine

 

[Bill.L]

Hi all,

Kristine....... Shhhhh.... Don't give the secret away just like that! There are people out there still charging lots to say that. How will they make a living ??

bye

 

[Peter Parker]

Hi all,

Kristine....... Shhhhh.... Don't give the secret away just like that! There are people out there still charging lots to say that. How will they make a living ??

bye

Then there's parts of Frankston that are still (relatively) cheap. According to ads you can still get 2br units for under $150k, though its location may be suspect and there probably isn't the redecorating potential that a house has. But for bargain basements, did anyone else see the ad for the fire-gutted house down that way on the domain website?

Regards, Peter