Hi Everyone,
Let me give a background about myself. I started working full-time in January 2011 and saved most of what i earned until saving a deposit of 130K in January 2014.
Using 91K as a 20% deposit and the remaining amount for stamp duty + other expenses. I bought a house in Boronia for $457K in January 2014. The house is on a 720m2 land. Initially I made the mistake of getting a Principal + Interest Loan and splitting my loan to one-third being on variable and two thirds being on fixed. Both on a principle + interest payment.
After listening to someones advice two months ago, I got a mortgage broker to send a valuer from ANZ to come value the house in boronia. That person from ANZ valued the house in boronia for $550K.
Listening to this individual, I ended up accessing $75K in equity from my boronia property to buy a second house way out in wallan (yes in the exurbs as they call it) for $340K, last month.
It's a 4 bed, 2 bath, 2 car house on a 400m2 land. Looking back on it now, I can see this has been a blunder from my end and will probably take a decade before i see any growth in that area. On a good note, tenants have moved in and for the moment, the rent pays the interest part of the new loan.
One thing I have fixed is, I have changed my loan structure with ANZ to a Interest Only loan for 5 years on the variable portion of my loan. The fixed portion hasn't been changed and is still a principle + interest loan for another 2 years. Also because the house in wallan was built in 2014, i am benefiting from maximum building depreciation. The house in boronia was also renovated a few years back, so I am claiming building depreciation there as well.
My living conditions remain unchanged. I still live with my parents and still continue to save the same amount of money on a monthly basis.
What should be my next move now? Can anyone with more experience, let me know what I should do next? Should I just keep on saving?
I really want to subdivide the house in boronia and build a 4 bedroom townhouse out the back. Should this be my next move? How much money will I need to perform a mammoth task like this? I'm not forgetting the cost for the DA application as well. How much will that cost?
Let me give a background about myself. I started working full-time in January 2011 and saved most of what i earned until saving a deposit of 130K in January 2014.
Using 91K as a 20% deposit and the remaining amount for stamp duty + other expenses. I bought a house in Boronia for $457K in January 2014. The house is on a 720m2 land. Initially I made the mistake of getting a Principal + Interest Loan and splitting my loan to one-third being on variable and two thirds being on fixed. Both on a principle + interest payment.
After listening to someones advice two months ago, I got a mortgage broker to send a valuer from ANZ to come value the house in boronia. That person from ANZ valued the house in boronia for $550K.
Listening to this individual, I ended up accessing $75K in equity from my boronia property to buy a second house way out in wallan (yes in the exurbs as they call it) for $340K, last month.
It's a 4 bed, 2 bath, 2 car house on a 400m2 land. Looking back on it now, I can see this has been a blunder from my end and will probably take a decade before i see any growth in that area. On a good note, tenants have moved in and for the moment, the rent pays the interest part of the new loan.
One thing I have fixed is, I have changed my loan structure with ANZ to a Interest Only loan for 5 years on the variable portion of my loan. The fixed portion hasn't been changed and is still a principle + interest loan for another 2 years. Also because the house in wallan was built in 2014, i am benefiting from maximum building depreciation. The house in boronia was also renovated a few years back, so I am claiming building depreciation there as well.
My living conditions remain unchanged. I still live with my parents and still continue to save the same amount of money on a monthly basis.
What should be my next move now? Can anyone with more experience, let me know what I should do next? Should I just keep on saving?
I really want to subdivide the house in boronia and build a 4 bedroom townhouse out the back. Should this be my next move? How much money will I need to perform a mammoth task like this? I'm not forgetting the cost for the DA application as well. How much will that cost?