Hi everyone,
This is something I am considering as my first purchase.
1) Get a big-block with an established house on it as my first home.
2) Build a dwelling or two behind the first house (all under one green-title and ownership as I intend to rent the new unit(s))
My questions would be:
1) Will it be easy to finance such a plan?
2) Would the second dwelling have a decent positive-impact on the equity of the whole property?
3) Can I call the second dwelling as an IP and the first one PPR for tax purposes?
4) Is zoning the same for strata houses and grouped dwellings?
5) What are the potential pitfalls?
Thanks for your patience.
EDIT: Forgot to add the location: South of the River, WA.
Will it be easy to finance? – Depending on the LVR and title. 3 dwellings on one title is fine with most lenders however each lender will have an LVR threshold that they will lend to so its important you choose a lender that goes to the LVR ceiling that you need it to go to. As an example, ANZ only goes to 70% on multi dwellings on a single title.
Generally speaking yes second dwellings do have a positive impact but it depends on the area. Before you subdivide make sure you speak to at least 2 agents and gen an idea of resale values for both the front house and the back. Also determine rental values so you have a back up plan.
The biggest pitfall of the adding a second dwelling is council and construction costs. These are massive variables. Make sure you do your research on these 2 things before purchasing.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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