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Wow $50K for a residential block! The very cheapest rural town blocks in WA are nearly double that! And building a 4x2 for only $110K is amazing. Its $170K+ here.We're building a 4x2 that will cost $160k if we also had to buy the land ($110k for the house alone), and would rent for $280pw - we're adding lots of extras so that cost could come down heaps.
Wow $50K for a residential block! The very cheapest rural town blocks in WA are nearly double that! And building a 4x2 for only $110K is amazing. Its $170K+ here.
Not trying to push my own story but my last purchase goes like this
House with attached granny flat $300,000
Purchase cost and small reno $30,000
Total $330,000 x 6.2% = $20,406 per year
Rates $1,350 per year
Agent fees at 6.48% of rent $1,530 per year
Insurance $580 Per year
Total costs = $23,866 or $458 per week
Income
House rent $16,380 per year
Granny flat $7,280 per year
Tax return $1,600 per year
Total income = $25,260 or $485 per week
Cashflow = $27 per week positive right from purchase.
I did not buy below market. I wasnt lucky. i just spotted a dual income property come on the market. This is a regional coastal city too not a one horse town.Plus its subdividable.They still pop up like this you just have to be looking.
Land tax is the silent killer if it applies to you. If it does, your numbers would be well in the red. At current int rates with land tax, get anything less than 9% gross return and you'll be tipping money in.
Although they're in small towns (often with declining populations), there's heaps of blocks in the $10 - 30k range in regional WA.
Above $30k you can get something near a large town (> 3000 pop).
Eg
http://www.realestate.com.au/property-residential+land-wa-yealering-2732701 (this even has a house on it)
Although they're in small towns (often with declining populations), there's heaps of blocks in the $10 - 30k range in regional WA.
Above $30k you can get something near a large town (> 3000 pop).
Eg http://www.realestate.com.au/property-residential+land-wa-kukerin-2658731
http://www.realestate.com.au/property-residential+land-wa-dowerin-2606098
http://www.realestate.com.au/property-residential+land-wa-tammin-2774528
http://www.realestate.com.au/property-residential+land-wa-yealering-2732701 (this even has a house on it)
http://www.realestate.com.au/property-residential+land-wa-katanning-2783941
http://www.realestate.com.au/property-residential+land-wa-merredin-2760721