Hi, long time reader, first time poster. Currently I own a home in Laverton (South of railway tracks) that I bought about 3 yrs ago. I initially bought here thinking that easy access to zone 1 rail, the hwy, sporting fields and shops this place would increase. The last 3 yrs the price has steadily decreased and i am not sure what to do.
The current home is a 1970 post war era home, that is extremely energy inefficient. It is our PPOR, it is an easy location to live, just uncomfortable house.
Options:
Hold - I have the option to rent this house out for about 270-300 pw (we did this for a year when We were living in the uk). I can buy another IP with the level of equity in the home and my income and make that our PPOR. Our current house is old and is constantly requiring maint issues.
Sell - I can cut our losses and sell. This is not preferred if possible. As I will lose.
Develop - due to the block being 50 x 12.3 I can only get a dual occ after speaking to a local architect. 2 low finish 3b townhouses with all expenses will be about 450 with initial feasibility. The rent would go up to about 350. We would probably live in one initially. The equity would not go up by much but the yield and our living conditions would.
Development is riskier but I am willing to get a neutral cost outcome for me to learn for future developments.
Furthermore, there is a block of land next door (450 sqm) that is owned by VIcRoads as Roadzone 1 and will in the next year or so sell via public auction once rezoned to R1. If I can wait and acquire this I can develop 4 townhouses.
Thanks for your input.
The current home is a 1970 post war era home, that is extremely energy inefficient. It is our PPOR, it is an easy location to live, just uncomfortable house.
Options:
Hold - I have the option to rent this house out for about 270-300 pw (we did this for a year when We were living in the uk). I can buy another IP with the level of equity in the home and my income and make that our PPOR. Our current house is old and is constantly requiring maint issues.
Sell - I can cut our losses and sell. This is not preferred if possible. As I will lose.
Develop - due to the block being 50 x 12.3 I can only get a dual occ after speaking to a local architect. 2 low finish 3b townhouses with all expenses will be about 450 with initial feasibility. The rent would go up to about 350. We would probably live in one initially. The equity would not go up by much but the yield and our living conditions would.
Development is riskier but I am willing to get a neutral cost outcome for me to learn for future developments.
Furthermore, there is a block of land next door (450 sqm) that is owned by VIcRoads as Roadzone 1 and will in the next year or so sell via public auction once rezoned to R1. If I can wait and acquire this I can develop 4 townhouses.
Thanks for your input.