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Thanks for the question.
I’m hoping to get some information to better understand another option. Plan A is to buy and hold for the cash flow.
I’d rather understand more options to make better decisions rather than only follow one path because that is all I know.Suri – I am no expert so bear this in mind with the way I think.
What is your ability to service the loan for this property? It would seem that choices you make would be dependent on your circumstances.
If the monthly net holding costs of this property put you under a lot of financial stress then you might plan with a bias towards a short term solution.
I assume you are talking about Croydon in Victoria, if so I went to an auction at the weekend – 1200 sqm+ with a small house on it but plans and approvals in place for 3 townhouses. Advertised $620+, sold for $923k!!!
I would tend to think that you haven’t paid “too much” for the block, you just need to make the right decision on the next steps and ensure you can afford to hold it in the mean time. If you can the plans & permits path to selling to a developer/builder sounds like good advice.This is really helpful, thank you Dean!
I am right now looking in to the numbers on a new IP purchase and what I can get from an AAMI on-line quote for $1500 is about half price on this (subject to me looking in to the fine print at the moment which I will do later today).
Cheers,
AndyThank you Jess, that’s an interesting way to look at it. Will review my finance options both ways.
AndyI’m interested in this line of thought as I’m about to buy a couple of IP’s. I thought if I went lower than 20% deposit I would have to pay for mortgage insurance? Is there a way around this or am I just misinformed?
Andy
