Hello,
I hope to get few expert advices on what to do with one of my property.
We bought this house back in 2006 to live in for $495K. The street is regarded as the best street for this suburb.
It ticked all my boxes (land component) and my wife’s (nice kitchen & bath).
Here are some property details:
Property value ~= 600K (Median price for this surburb = 430K)
Frontage = 18m
Lot size = 734 sqm
30-40 years old house.
Sloping to the street.
10 mins walk to a western line station
Renting for $470 pw.
We moved out of this property back in late 2009 and living with parents. Hence we have the 6 year no capital gain period.
Here are the options which I can think of and associated issues.
1. Keep it for longer period (move in for 6 months before 6 year dead line) – It has lower yield which limits future investments
2. Sell before 2015 (before 6 year rule) – Would the price pick up by then?
3. Add a granny flat for 100K and get extra $300pw – Am I injecting too much capital into this land and stoping any development opportunity?
4. Get a duplex DA and sell it – Is spending about 25K worth it? A dwelling in a duplex is going for about 600K now.
5. Build a duplex – Negative gearing & increased rents can be added to the cash flow but it would cost me about 450K to build it. There will be no rental income for a year.
What do you think I should do with this property?
regards,
devank
I hope to get few expert advices on what to do with one of my property.
We bought this house back in 2006 to live in for $495K. The street is regarded as the best street for this suburb.
It ticked all my boxes (land component) and my wife’s (nice kitchen & bath).
Here are some property details:
Property value ~= 600K (Median price for this surburb = 430K)
Frontage = 18m
Lot size = 734 sqm
30-40 years old house.
Sloping to the street.
10 mins walk to a western line station
Renting for $470 pw.
We moved out of this property back in late 2009 and living with parents. Hence we have the 6 year no capital gain period.
Here are the options which I can think of and associated issues.
1. Keep it for longer period (move in for 6 months before 6 year dead line) – It has lower yield which limits future investments
2. Sell before 2015 (before 6 year rule) – Would the price pick up by then?
3. Add a granny flat for 100K and get extra $300pw – Am I injecting too much capital into this land and stoping any development opportunity?
4. Get a duplex DA and sell it – Is spending about 25K worth it? A dwelling in a duplex is going for about 600K now.
5. Build a duplex – Negative gearing & increased rents can be added to the cash flow but it would cost me about 450K to build it. There will be no rental income for a year.
What do you think I should do with this property?
regards,
devank