Hi, First timer & very raw with property investment so your advice would be appreciated.
I own my ppor (520k) and have an investment property (370k) with a debt of 250k of which I pay $400 a month (principle & interest. rent covers the rest). I have a secure job and combined income of around $160k.
I am looking at a 940sqm town block valued at 120k in a country town that is said to double in population over the next 10 yrs.
I am not sure how many villas’s I can get onto the block but my thinking was 3 and have AV Jennings for example build 3 on the block each @ around 140k. Total cost so far $540k. Perhaps sell 2 for $330 each and keep one for rental.
Next question is how much additional cost should I expect? The block is enclosed by colourbond fencing, cleared, very slightly sloping, and has street access to electricity, phone lines etc.
Hi aferns,
I don't know the answers but I can maybe point you to some more questions…
1. Talk to your bank straight away and determine your borrowing capacity
2. Talk directly to the council or a qualified town planner or licenced surveyor in the area to determine what you can actually fit on the block. I don't mean get a survey at the moment but there will be planning guidelines. i.e. in area A you might only need 300m2 per dwelling. In area B you may well need to allocate more. I would have thought in a regional town it might be higher than you were thinking.
3. Again, talk to an experienced surveyor about typical subdivision costs, you should get a ballpark figure hopefully.
4. Be very careful about taking the construction price from a project builder website, it is more likely to be higher than this in reality, again especially in a regional town.These thing do vary with location so best to get on the phone to local professionals and glean as much as you can. Talk to the council.
Good Luck!
thommo
oh yeah – don't forget your market research determining what you actually need to build – if the main market is families you're prob going to want gardens as opposed to retirement living low maintenance
thommo
Many thanks for your advice Thommo. Got a bit of work to do.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
