Hi guys
First time poster, been lurking for a month and a bit and had to join up.
Right, I have a house in the Williams Landing area in the SW part of Melbourne. My house has 4 bedrooms, 2 bath and 2 car garage on 500 sqm approx block of land. Similar houses around me sell for about $450k - $500k (older part of Williams Landing). I have equity of about $250k built up. I dont intend to sell this house for the next 2-3 years.
I do not have enough savings to shell out the deposit to build a house, rent it out for 2-3 years and sell it hopefully before the bubble bursts (yeah I know we've been expecting it for 10 years now). So I'm thinking of buying a block of land in the Truganina area for about $220k ish, sit on it for just under 18 months and sell before the 18 month mark (after which they want you to start building around here). I know buying a house and renting it out is better.
Now I know there's the CGT + the interest + council rates + other bills + maintenance to pay. My question is - is this a good idea? Anyone done this in this area? Prices of land around here have been climbing up like there's no tomorrow (which is why I'm thinking of this).
Please give me some honest and real world advice, I could use some!
Thanks.
First time poster, been lurking for a month and a bit and had to join up.
Right, I have a house in the Williams Landing area in the SW part of Melbourne. My house has 4 bedrooms, 2 bath and 2 car garage on 500 sqm approx block of land. Similar houses around me sell for about $450k - $500k (older part of Williams Landing). I have equity of about $250k built up. I dont intend to sell this house for the next 2-3 years.
I do not have enough savings to shell out the deposit to build a house, rent it out for 2-3 years and sell it hopefully before the bubble bursts (yeah I know we've been expecting it for 10 years now). So I'm thinking of buying a block of land in the Truganina area for about $220k ish, sit on it for just under 18 months and sell before the 18 month mark (after which they want you to start building around here). I know buying a house and renting it out is better.
Now I know there's the CGT + the interest + council rates + other bills + maintenance to pay. My question is - is this a good idea? Anyone done this in this area? Prices of land around here have been climbing up like there's no tomorrow (which is why I'm thinking of this).
Please give me some honest and real world advice, I could use some!
Thanks.