Hello
I am after some advice.
I currently own (well bank owns) a two bedroom weatherboard in Noble Park on 650m2 - irregular block at bowl of court - land is on a slope (not flat).
I have a one bedroom IP in Murrumbeena and a one bedroom IP in St Kilda - both neutrally geared.
Ideally I'd love to build a duplex, sell one and live in the other with a much smaller mortgage and keep both IPs.
However I just can't see how that would happen.
We'd need a bit of site excavation to make a flat base on which to build and would probably need to demolish this place as there doesn't seem to be a market for 2 bedders for home relocation.
I'm guestimating it would cost about $400,000 for the works. And I could sell the other half of the duplex for around $400,000 maybe a bit more as there is a premium for new stuff.
So all that's happened is that I get a new place to live in, and even worse, I might have to sell the two IPs to finance it as the banks might be nervous about loaning to us on our current income.
Another option is to subdivide and sell off the back yard.
Or to subdivide and put a three bedroom home on the back yard, move into that and sell off the front home.
So I guess my question is = what's the best option?
I can live here for a little while longer, but we have four children so we're going to start bursting out of the walls eventually.
Also - this is Noble Park and people here place a premium on new, brick, and big houses. Tastefully renovated weatherboards are not appreciated the way they are over in Brighton or Hampton.
I really thought that buying a decent sized block would be my goldmine, but I'm not so sure now.
I am after some advice.
I currently own (well bank owns) a two bedroom weatherboard in Noble Park on 650m2 - irregular block at bowl of court - land is on a slope (not flat).
I have a one bedroom IP in Murrumbeena and a one bedroom IP in St Kilda - both neutrally geared.
Ideally I'd love to build a duplex, sell one and live in the other with a much smaller mortgage and keep both IPs.
However I just can't see how that would happen.
We'd need a bit of site excavation to make a flat base on which to build and would probably need to demolish this place as there doesn't seem to be a market for 2 bedders for home relocation.
I'm guestimating it would cost about $400,000 for the works. And I could sell the other half of the duplex for around $400,000 maybe a bit more as there is a premium for new stuff.
So all that's happened is that I get a new place to live in, and even worse, I might have to sell the two IPs to finance it as the banks might be nervous about loaning to us on our current income.
Another option is to subdivide and sell off the back yard.
Or to subdivide and put a three bedroom home on the back yard, move into that and sell off the front home.
So I guess my question is = what's the best option?
I can live here for a little while longer, but we have four children so we're going to start bursting out of the walls eventually.
Also - this is Noble Park and people here place a premium on new, brick, and big houses. Tastefully renovated weatherboards are not appreciated the way they are over in Brighton or Hampton.
I really thought that buying a decent sized block would be my goldmine, but I'm not so sure now.