i saw this and have got some figures done - see the attached word doc.
i lost the deal because my serviceability is shot thanks to paying rent + mortgage (and i'm close to the limit as it is) - i gave my family a shot but, well, who wants to take advice from the youngest in the family...?
http://www.realestate.com.au/cgi-bi...fmt=&header=&cc=&c=3526661&s=wa&tm=1220486804
4x1 on 870sqm R15/25 duplex block. block is an odd shape but i already have a 4x2 concept drawn. asking $335k which i think is a mistake but i would still offer $305k with a max of $315k. SD and fees on this will be about $15k.
front is heavily renovated - new kitch, bath, floors, patio. good depreciation for an older house.
cut front off, subdivide and rent for approx $340pw. on a $315k purchase, that's a 5.6% yield.
build on rear, i can have a 4x2 of this calibre built for $160k finished (carpet/blind/verticals/paint) with about $35k in sites and landscaping + associated fees for subdivision / DA / BA brings total to about $230k.
so you now have 2 homes - after front has fresh landscaping as per city of armadale's policy it could get $350pw easy. rear would get $350pw as well.
that's a combined spend of $550k (market value approx $650-$680k) and pulling $700pw rent across the two - or a 6.6% yield.
sell front home - should pull $300-$320k being a 4 bed home (4 bedders are getting rarer in this area every day) which leaves a brand new, 4x2 home on the rear worth approx $350k, but only owing $230k approx.
$230k value renting at $350pw = 7.9% yield.
then there's depreciation across a brand new home and i think you'll find this will put about $6k pa in you pocket after tax.
see attached pics and PDFs.
this, i believe, is a good deal and i'm still sore i missed out on it.
i lost the deal because my serviceability is shot thanks to paying rent + mortgage (and i'm close to the limit as it is) - i gave my family a shot but, well, who wants to take advice from the youngest in the family...?
http://www.realestate.com.au/cgi-bi...fmt=&header=&cc=&c=3526661&s=wa&tm=1220486804
4x1 on 870sqm R15/25 duplex block. block is an odd shape but i already have a 4x2 concept drawn. asking $335k which i think is a mistake but i would still offer $305k with a max of $315k. SD and fees on this will be about $15k.
front is heavily renovated - new kitch, bath, floors, patio. good depreciation for an older house.
cut front off, subdivide and rent for approx $340pw. on a $315k purchase, that's a 5.6% yield.
build on rear, i can have a 4x2 of this calibre built for $160k finished (carpet/blind/verticals/paint) with about $35k in sites and landscaping + associated fees for subdivision / DA / BA brings total to about $230k.
so you now have 2 homes - after front has fresh landscaping as per city of armadale's policy it could get $350pw easy. rear would get $350pw as well.
that's a combined spend of $550k (market value approx $650-$680k) and pulling $700pw rent across the two - or a 6.6% yield.
sell front home - should pull $300-$320k being a 4 bed home (4 bedders are getting rarer in this area every day) which leaves a brand new, 4x2 home on the rear worth approx $350k, but only owing $230k approx.
$230k value renting at $350pw = 7.9% yield.
then there's depreciation across a brand new home and i think you'll find this will put about $6k pa in you pocket after tax.
see attached pics and PDFs.
this, i believe, is a good deal and i'm still sore i missed out on it.