Hello
These are my circumstances
House 1 value = 340K
House 2 value =190K
House 3 value = 120k
Total Value = 520K
Rent House 1 = 450 P/W
rent house 2 = 160 P/W
rent house 3 = !55 P/w
Total rent per week = $765 P/W
Wages = @850 per week (after tax) 67K P/A
Total weekly income = $1615 per week (after tax)
I get a yearly tax return of around 10K.
Outgoings are as follows:
$612 per week for mortgage (480K loan )
$50 per week board
$50 per week car expenses.
Options I have thought of :
1) Demolish and subdivide house 2
40K for site costs (subdivision, demolition, clearing)
200K building costs (100K for each house).
Benefits are as follows :
@300 P/W times 2 = $600 per week - $165 I already get = $435
For a $240K outlay I could conservitively get a return of around 9% (I think).
The downside of this is the stress of dealing with builders/Contractors and of coarse local councils, along with the uncertainty of when it gets finished etc.
Option 2 : Buy another House
I may be buying at the top of the cycle, but at least I will get the next wave in whenever that may be.
Option 3 : Do nothing, this currently seems a pretty easy thing to do (sorry this is called debt reduction).
Any views on what other people would do would be helpful, along with any ideas as to wether the bank would even say yes to loaning me any more money.
Whenever anyone says rent reliant I start breaking out into cold sweats. I don't mind banks giving me straight figures to deal with, its pretty black and white, but when you jump through all the hoops and then get told that you are to rent reliant it is soul destroying, I really dislike invisible misterious lines that you are not told about until you have crossed them.
From someone that knows, do my finances look resonably solid, or should I be looking to pay some of my debt off, before embarking on any other projects, also could I be a candidate for rent reliance again, and is there some sort of formulae that banks use for it.
Regards Adam
These are my circumstances
House 1 value = 340K
House 2 value =190K
House 3 value = 120k
Total Value = 520K
Rent House 1 = 450 P/W
rent house 2 = 160 P/W
rent house 3 = !55 P/w
Total rent per week = $765 P/W
Wages = @850 per week (after tax) 67K P/A
Total weekly income = $1615 per week (after tax)
I get a yearly tax return of around 10K.
Outgoings are as follows:
$612 per week for mortgage (480K loan )
$50 per week board
$50 per week car expenses.
Options I have thought of :
1) Demolish and subdivide house 2
40K for site costs (subdivision, demolition, clearing)
200K building costs (100K for each house).
Benefits are as follows :
@300 P/W times 2 = $600 per week - $165 I already get = $435
For a $240K outlay I could conservitively get a return of around 9% (I think).
The downside of this is the stress of dealing with builders/Contractors and of coarse local councils, along with the uncertainty of when it gets finished etc.
Option 2 : Buy another House
I may be buying at the top of the cycle, but at least I will get the next wave in whenever that may be.
Option 3 : Do nothing, this currently seems a pretty easy thing to do (sorry this is called debt reduction).
Any views on what other people would do would be helpful, along with any ideas as to wether the bank would even say yes to loaning me any more money.
Whenever anyone says rent reliant I start breaking out into cold sweats. I don't mind banks giving me straight figures to deal with, its pretty black and white, but when you jump through all the hoops and then get told that you are to rent reliant it is soul destroying, I really dislike invisible misterious lines that you are not told about until you have crossed them.
From someone that knows, do my finances look resonably solid, or should I be looking to pay some of my debt off, before embarking on any other projects, also could I be a candidate for rent reliance again, and is there some sort of formulae that banks use for it.
Regards Adam
