Hi Guys,
I am stuck for what to buy next. I currently own a house in Wallan, which is tenanted. I have increased the LVR to 80% and along with savings can spend about $70k-$80k on another purchase.
With the Wallan house at 80% LVR it puts $50 a week in my pocket after agents fees.
There are two main options I am thinking about doing and would like some feedback/advice on each;
1. I build 2 house and land packages at 90% LVR. I've done some research and people seem to be talking about Melton as a growing hub. I could get a 4 bedroom house, 2 cars, 2 bathrooms on a reasonable size block for under $350k.
I'd build another one of similar size and value in Epping/Doreen.
Pros:
2 houses (diversification).
Great depreciation.
Affordable.
Good yield.
Stamp duty savings by building.
Possible discount through volume builder by doing 2.
Cons:
Poor growth in outer suburbs.
2. Or I build a townhouse around Essendon/Moonee Ponds. Which is where I want to live eventually. So this has a bit of emotional attachment to it. I could build (to save stamp duty), then rent it out for a few years, and move into it in a few years when I can more afford it.
Pros:
Good capital growth.
Good depreciation.
Turn it into a PPOR eventually.
Stamp duty savings by building.
Cons:
Average yield.
Pushing my budget.
A bit of background about me; I am 27, and I was living in my current IP with my girlfriend. We have since broken up and I have moved back home. I don't want to be at home for too much longer, I will probably rent an apartment around Essendon next year. I want this next step to be a smart move to help me set up my financial future. I can stay at home a little longer if I need to (during construction or if a property in too negatively geared), but once I move out again, I do not want to go back, so I would need my portfolio to be manageable with me renting elsewhere.
What would you do with $70k-$80k if you were in my position? Are there any better options I am overlooking?
Thanks
I am stuck for what to buy next. I currently own a house in Wallan, which is tenanted. I have increased the LVR to 80% and along with savings can spend about $70k-$80k on another purchase.
With the Wallan house at 80% LVR it puts $50 a week in my pocket after agents fees.
There are two main options I am thinking about doing and would like some feedback/advice on each;
1. I build 2 house and land packages at 90% LVR. I've done some research and people seem to be talking about Melton as a growing hub. I could get a 4 bedroom house, 2 cars, 2 bathrooms on a reasonable size block for under $350k.
I'd build another one of similar size and value in Epping/Doreen.
Pros:
2 houses (diversification).
Great depreciation.
Affordable.
Good yield.
Stamp duty savings by building.
Possible discount through volume builder by doing 2.
Cons:
Poor growth in outer suburbs.
2. Or I build a townhouse around Essendon/Moonee Ponds. Which is where I want to live eventually. So this has a bit of emotional attachment to it. I could build (to save stamp duty), then rent it out for a few years, and move into it in a few years when I can more afford it.
Pros:
Good capital growth.
Good depreciation.
Turn it into a PPOR eventually.
Stamp duty savings by building.
Cons:
Average yield.
Pushing my budget.
A bit of background about me; I am 27, and I was living in my current IP with my girlfriend. We have since broken up and I have moved back home. I don't want to be at home for too much longer, I will probably rent an apartment around Essendon next year. I want this next step to be a smart move to help me set up my financial future. I can stay at home a little longer if I need to (during construction or if a property in too negatively geared), but once I move out again, I do not want to go back, so I would need my portfolio to be manageable with me renting elsewhere.
What would you do with $70k-$80k if you were in my position? Are there any better options I am overlooking?
Thanks
