Hi guys, we have had some accidental IP's over the time due to being expats in other countries so have bought and sold, gained and lost but came out on top again by accident due to 2 gains in Sydney offsetting a big loss in Ireland and another gain allowing our PPOR plus our savings to be mortgage free.
I stopped working, we have 4 kids that apparently need raising but approached this in probably the same manner as our IP's,( if it happened it happened)and I have very little in a pension fund. Hubby has a pension fund dwindling away here from years ago, he works in another country so isn't obligated to and hates super funds. He pays tax there and due to an agreement with oz pays the diff. Here along with Medicare and levys and such. But we found out recently we were getting old...really old according to the little people, so in our usual fashion went almost blind folded into putting an offer on our first proper IP, as in it won't be our usual turning our PPOR into one.
Anyway, property is near brisbane city, uni. Transport and on a main thoroughfare. 810sqm block, wide house, (might be hard to subdivide because of that) also pre war and DCP area.
60-80k worth of work needed on retention walls and drainage as per estate agent armed with the builder quote the owners didnt want to do the work pre sale.
Put in offer in my name to pos. gear subject to inspection.
Inspection typical for house of that age but due to cracks strongly reccommended structural engineer. Also verbally said asbestos but put possible hazordous material.
Structural engineer reckons cost to repair way to low, more like 120-150 but will get his builder to check. Also said asbestos (with cracking so remove) in the add on (pre permit) stage at the back. Looks like they brought the laundry and 2 small back rooms in to join to house. Peers at front of house cracked along with front stairs moving but not joined to brick work etc. lots of drainage issues causing seepage and movement etc. stated if repairs are not done it will cause structural issues to house over time but house itself and footings are good.
So our plan. Obviously demolish would be great if we can get around DCP, if not possible then huge Reno. Lift house and build 2 units under. House is currently split into 2 units.
Also, though not showing on council flood map, insurance company says whole postcode flood zone, it is on a hill so unlikely to flood if drainage and damp proofing are done properly) . Insurance from contract offer for only 200k is 1k per year.
To do this major Reno. Looking at borrowing over 800k now so neg. gear.
Plan of action: renegotiate on purchase price, if this works, (told it prob. Will just depends on how much) cancel current contract and put into hubby's name to make it tax effective, get town planner (2-3k?) and see how to maximise land potential (high student area) approx $450 per week for 2 b/ r in good cond. hope to get 4 units love to get 6 (est 1800 incl gst oer 100 sqm?) though all depends on what we don't know! Pay 1/3 in cash borrow 2/3 in hubbys name and keep PPOR out of it (Apparently we have to keep paying for education for several more years though given they still say brang, not sure why really!) and it won't have an income for quite a while based on applications, works etc
Needless to say highlighting pitfalls would be very appreciated as this is our first foray at needing to and trying to do this right. I have been reading this boards and this is what I am getting so far but I know I have missed stuff and could be overly optimistic!
I stopped working, we have 4 kids that apparently need raising but approached this in probably the same manner as our IP's,( if it happened it happened)and I have very little in a pension fund. Hubby has a pension fund dwindling away here from years ago, he works in another country so isn't obligated to and hates super funds. He pays tax there and due to an agreement with oz pays the diff. Here along with Medicare and levys and such. But we found out recently we were getting old...really old according to the little people, so in our usual fashion went almost blind folded into putting an offer on our first proper IP, as in it won't be our usual turning our PPOR into one.
Anyway, property is near brisbane city, uni. Transport and on a main thoroughfare. 810sqm block, wide house, (might be hard to subdivide because of that) also pre war and DCP area.
60-80k worth of work needed on retention walls and drainage as per estate agent armed with the builder quote the owners didnt want to do the work pre sale.
Put in offer in my name to pos. gear subject to inspection.
Inspection typical for house of that age but due to cracks strongly reccommended structural engineer. Also verbally said asbestos but put possible hazordous material.
Structural engineer reckons cost to repair way to low, more like 120-150 but will get his builder to check. Also said asbestos (with cracking so remove) in the add on (pre permit) stage at the back. Looks like they brought the laundry and 2 small back rooms in to join to house. Peers at front of house cracked along with front stairs moving but not joined to brick work etc. lots of drainage issues causing seepage and movement etc. stated if repairs are not done it will cause structural issues to house over time but house itself and footings are good.
So our plan. Obviously demolish would be great if we can get around DCP, if not possible then huge Reno. Lift house and build 2 units under. House is currently split into 2 units.
Also, though not showing on council flood map, insurance company says whole postcode flood zone, it is on a hill so unlikely to flood if drainage and damp proofing are done properly) . Insurance from contract offer for only 200k is 1k per year.
To do this major Reno. Looking at borrowing over 800k now so neg. gear.
Plan of action: renegotiate on purchase price, if this works, (told it prob. Will just depends on how much) cancel current contract and put into hubby's name to make it tax effective, get town planner (2-3k?) and see how to maximise land potential (high student area) approx $450 per week for 2 b/ r in good cond. hope to get 4 units love to get 6 (est 1800 incl gst oer 100 sqm?) though all depends on what we don't know! Pay 1/3 in cash borrow 2/3 in hubbys name and keep PPOR out of it (Apparently we have to keep paying for education for several more years though given they still say brang, not sure why really!) and it won't have an income for quite a while based on applications, works etc
Needless to say highlighting pitfalls would be very appreciated as this is our first foray at needing to and trying to do this right. I have been reading this boards and this is what I am getting so far but I know I have missed stuff and could be overly optimistic!