Hi,
I have never invested in below and am thinking of buying a triplex block with my parent in Balga and developing.
Is this a good option or should I just go in for something less risky, ebing my first investment?
Hi
I think what you are doing sounds like a great idea. there will always be risk in investment, and i think the fact that you are doing it with your parents minimises this risk.
Balga is a great area also. If all the numbers work and you can afford it ok, then i say go for it and good lu[lmao]ck!
cheers
LyndonI was very tempted by some Balga triplex property myself but it was a bit of a stretch at the time so didn’t unfortunately and its just got more and more expensive over the past year. You need to know the prospective rents you can get, proximity to the schools, shops, buses etc. Check out the other new builds in the area too and see what kinds of houses are going in and what property improvements home owners are making. Don’t put an expensive build in. If you do something similar to other builds then you will be fine. Families, single parents and Tafe students are often the tenants there.
I love to hear about family investing together. Thats what we have done too. Its fun and we’ve found it gives us a common interest and a new aspect to our relationship. The best of luck and well done.
Tizzyhi
i’ve done a duplex before and currently doing another project at the moment,if the figures stack up it can be straight forward
steve
I would strongly advise you to talk to a builder or developer that can help you with the numbers. A developer should also be able to discuss with you the pros and cons.
At the end of the day the figures have to add up for developers and you have to be able to make profit today as it is not wise to predict profit on what may happen to prices tommorow.One word of warning.
I know from personal experience that these development sites within 10km of Perth have all had 100% increases in value over the last 18 months, and if you dont intend to build straight away be mindful of the holding costs. At current prices I figure there may be quite a gap to fill with the interest on the loan presuming you borrow the full amount.
Good luck
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