How to buy a PPOR for next to nothing?

[Nathan]

Just thought I would share with SS a PPOR I just purchased in Kellyville region in North West Sydney.

This property is the original farm house in an established estate which has not been lived in for 10 years.

This property sits on the fence boundary and has enough room to build a new house, so my intentions are to build a new house next door and live in that as well as doing a total transformation to a high standard to the house existing to rent out for $550pw.

The house next door sold for $675,000 last week and is a standard masterton 4 bedder.

The numbers;
$442,000 - Purchase
$30,000 - Reno
$170,000 - New build
=
$650,000 purchase price.

Value $900,000 (ultra conservative)

Rent $550pw on existing house and live in brand new house.

$650,000 x 5.5% = $35,750pa interest on the total ammount or $687pw

Rent of exsisting dwelling $550pw

= $130pw to live in the property (+ usual council and water).

This is just a house and not my home, as I dont care what I live in currently as it is a roof over my head but I want to purchase my 5 acres in Dural by 2015, with a custom built 11 bedroom house and 3 bedroom guest house etc, but this one for time being is proof to show that you can live in a brand new house for next to nothing in an affluent family neighbourhood of Sydney.

 

[Nathan]

Pics here - https://www.facebook.com/media/set/?set=pcb.10151261692549173&type=1

 

[moyjos]

Well done Nathan. Would love to see the pics but you have your privacy settings turned on in Facebook. I keep getting a "you are not authorized" type message.

 

[beachgurl]

Well done Nathan!

I do ask where you can find a builder to build a decent sized house for 170k though. If you can give me their details i'd love to speak with them as the price I paid for my last smallish build was way over that.

 

[Terry_w]

Mates rates maybe. I have a client building one 3 bedroom house in outer Sydney for $170,000 too. Brothers.

 

[JennD]

Just thought I would share with SS a PPOR I just purchased in Kellyville region in North West Sydney.

This property is the original farm house in an established estate which has not been lived in for 10 years.

This property sits on the fence boundary and has enough room to build a new house, so my intentions are to build a new house next door and live in that as well as doing a total transformation to a high standard to the house existing to rent out for $550pw.

The house next door sold for $675,000 last week and is a standard masterton 4 bedder.

The numbers;
$442,000 - Purchase
$30,000 - Reno
$170,000 - New build
=
$650,000 purchase price.

Value $900,000 (ultra conservative)

Rent $550pw on existing house and live in brand new house.

$650,000 x 5.5% = $35,750pa interest on the total ammount or $687pw

Rent of exsisting dwelling $550pw

= $130pw to live in the property (+ usual council and water).

This is just a house and not my home, as I dont care what I live in currently as it is a roof over my head but I want to purchase my 5 acres in Dural by 2015, with a custom built 11 bedroom house and 3 bedroom guest house etc, but this one for time being is proof to show that you can live in a brand new house for next to nothing in an affluent family neighbourhood of Sydney.

Interested to see how it works out when you sell. Hoping there's demand for properties in that $ bracket. My parents are sitting on a Hills District home for $880k and 6mths ago couldn't seem to shift it without having to consider dropping $value significantly to a price point very close to what other much smaller land blocks/smaller property and same age type properties are going for. Not sure what's going on in that market now though.

 

[Spades]

Nathan,what was the land size?