Experts,
Recently got into the property arena. Found lot of value on the forum. had a query popping up in mind. Thought to ask from wise on the forum.
Situation: Got a sub dividable house in Sep 2014 in one of the NE suburbs of Adelaide ( Modbury). The total cost of house ( including stamp duty and interest paid till date) : about 310 K. Based on location and dimensions I believe it would have been BMV by about 15-20K. Property is about 650 sqm with 22 mtr frontage.
Options: With market in the area upbeat, I am now thinking of extracting the benefit. 3 options:
1. Sell outright ( Not sure of Selling price and hence suggestions needed at end of message)
2. Subdivide in 2 and sell each piece of land at about 200K. ( Subdivision cost: about 40-50K. Profit of about 30-40K)
3. Subdivide build and sell each one at about 370K ( Build cost+sell cost of less than 200 K per dwelling. Profit of about 50-60K)
Suggestions needed:
1. Are the figures somewhat realistic?
2. One of my friend ( not a property expert) values the property at about 350-360K presently based on sales in the area. However RP data etc value it at the price I bought it. Is it worth trying to list the property in market to assess the "actual Value"
3. With efforts vs returns comparison, What's the best deal out of 3 listed options?
Feel free to ask questions if I missed out on anything. Criticism of my understanding is welcome!!!
Recently got into the property arena. Found lot of value on the forum. had a query popping up in mind. Thought to ask from wise on the forum.
Situation: Got a sub dividable house in Sep 2014 in one of the NE suburbs of Adelaide ( Modbury). The total cost of house ( including stamp duty and interest paid till date) : about 310 K. Based on location and dimensions I believe it would have been BMV by about 15-20K. Property is about 650 sqm with 22 mtr frontage.
Options: With market in the area upbeat, I am now thinking of extracting the benefit. 3 options:
1. Sell outright ( Not sure of Selling price and hence suggestions needed at end of message)
2. Subdivide in 2 and sell each piece of land at about 200K. ( Subdivision cost: about 40-50K. Profit of about 30-40K)
3. Subdivide build and sell each one at about 370K ( Build cost+sell cost of less than 200 K per dwelling. Profit of about 50-60K)
Suggestions needed:
1. Are the figures somewhat realistic?
2. One of my friend ( not a property expert) values the property at about 350-360K presently based on sales in the area. However RP data etc value it at the price I bought it. Is it worth trying to list the property in market to assess the "actual Value"
3. With efforts vs returns comparison, What's the best deal out of 3 listed options?
Feel free to ask questions if I missed out on anything. Criticism of my understanding is welcome!!!