Hi All,
This is my first post although I have been following these forums for quite some time. Everyone is so helpful, its great to see.
First off I'll introduce myself, My names is Matt, 27yo and live in the northern suburbs of Melbourne (Fortunately still at home with the parents) I have my own IT company which is travelling quite successfully at the moment.
Myself and my girlfriend are looking at property investment for the first time. We have met with a mortgage broker/financial advisor and worked out we have a borrowing capacity of 750k.
Here is our current plan, any critisism, advice or guidance would be much appreciated
Area of Interest: Pascoe Vale VIC / Oak Park VIC (Or Surrounding Suburbs)
Long Term Plan: To purchase a property with 650+sqm of land with the long term views of subdividing and developing a multi-unit site.
Property Cost: 600k-700k (For a property in Oak Park / Pascoe Vale with the land sizes required to fit with our plans)
Short Term Plan The purchased property would need to have a house currently in a rentable state (Or with some new paint/kitchen/carpet etc. become a rentable property) While receiving some rental income sit tight for a while and slowly plan the subdivision etc.
To be honest, i've done some reading online about subdivision and developing although i'm still very green in this area. I have a few concerns with my above approach, which are mainly financial.
Should our views be to subdivide to build a second unit/townhouse at the rear? Or should we make sure we purchase land large enough for 2 additional units/townhouses? Here are some inexperiences calculations i have made Feel free to correct me....
1 additional Unit:
Price: 650k
Plans: 20k?
Build: 250k
Total Cost: $920k
Outcome: Own 2 properties (Worth roughly 450k each?)
The above calculations see me at a point where i'm no better off than going out and buying 2 already built units. Agree or disagree?
2 additional Units:
Price: 650k
Plans: 20k?
Build: 500k
Cost: $1.170m
Sell: -450k
Total Cost: $720k
Outcome: Own 2 properties (Worth roughly 450k each - 900k)
If my figures above are wayyy off, I'd be very grateful if you could let me know what these figures should be.
As you can see, i'm very green with all of this but I'd like to understand and learn how others have gone about these processes and if you feel i'm not in a position to go down this path, please shoot me down in flames
Once again, any advice or guidance would be much appreciated.
I look forward to everyones respons.
Cheers
Matt
This is my first post although I have been following these forums for quite some time. Everyone is so helpful, its great to see.
First off I'll introduce myself, My names is Matt, 27yo and live in the northern suburbs of Melbourne (Fortunately still at home with the parents) I have my own IT company which is travelling quite successfully at the moment.
Myself and my girlfriend are looking at property investment for the first time. We have met with a mortgage broker/financial advisor and worked out we have a borrowing capacity of 750k.
Here is our current plan, any critisism, advice or guidance would be much appreciated
Area of Interest: Pascoe Vale VIC / Oak Park VIC (Or Surrounding Suburbs)
Long Term Plan: To purchase a property with 650+sqm of land with the long term views of subdividing and developing a multi-unit site.
Property Cost: 600k-700k (For a property in Oak Park / Pascoe Vale with the land sizes required to fit with our plans)
Short Term Plan The purchased property would need to have a house currently in a rentable state (Or with some new paint/kitchen/carpet etc. become a rentable property) While receiving some rental income sit tight for a while and slowly plan the subdivision etc.
To be honest, i've done some reading online about subdivision and developing although i'm still very green in this area. I have a few concerns with my above approach, which are mainly financial.
Should our views be to subdivide to build a second unit/townhouse at the rear? Or should we make sure we purchase land large enough for 2 additional units/townhouses? Here are some inexperiences calculations i have made Feel free to correct me....
1 additional Unit:
Price: 650k
Plans: 20k?
Build: 250k
Total Cost: $920k
Outcome: Own 2 properties (Worth roughly 450k each?)
The above calculations see me at a point where i'm no better off than going out and buying 2 already built units. Agree or disagree?
2 additional Units:
Price: 650k
Plans: 20k?
Build: 500k
Cost: $1.170m
Sell: -450k
Total Cost: $720k
Outcome: Own 2 properties (Worth roughly 450k each - 900k)
If my figures above are wayyy off, I'd be very grateful if you could let me know what these figures should be.
As you can see, i'm very green with all of this but I'd like to understand and learn how others have gone about these processes and if you feel i'm not in a position to go down this path, please shoot me down in flames
Once again, any advice or guidance would be much appreciated.
I look forward to everyones respons.
Cheers
Matt