hi,
I am just looking for the advice from people from an investing point of view as to which most people whether most people would go ahead with what I am thinking of doing.
I am in the situation whereby i cannot borrow enough to be able to purchase any sort of home that I am keen on in Oz. I could probably get about 60 – 70k though. I own my home in West Sydney and am thinking of building a second story on it hoping that it would increase the value of the place by more than the cost of the building.
My question is would most people wait till there was enough equity in the current place to be able to buy another house, or do people believe that this is a good way of putting the funds i have available to good use to build equity in the house. Is it much of a muchness? Is it basically personal choice?
Also, I have never extended before… is it worth the effort? Does it take long on average for a second story to be built? How about council applications etc?
Thanks for the help,
Waz11
Do you have a use for a second storey? there’s two ways of looking at it I guess, one is that if you have a use for the extra room then you are giving yourself a better lifestyle while improivng the value of the property.
The other is, that you are relying on capital gains by going down that path, can you comfortable that there will be capital gains in the future or are you looking for cashflow?
I think you need to answer a few of those questions for yourself first before going any further.
Personally I’m happy where I live, so I would hold on until I had enough equity to get a loan for another IP, but that is becasue I have a lifestyle I am comforatable iwht now and I am building for the future so that I can retire on the same funds we currenlty work for.
Good Luck either way, hopefully others will have some feedback for you as well.
PK
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