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Believe me, I have explored all building options. Unfortunately our property is zoned 2a, which means I can build nothing but a double story house, as the block is 15 x 62 mtres (need 17m wide block in our council). Ideally we would have built an additional house behind the current house. We are leaning towards building and living in the new house in order to reduce capital gains, and sell my current house at a capital loss in a few years time (as it will become an investment property).
Thanks for the replies..I was thinking selling the $400K property,and use the $120K profit as deposit for 5 or so positive cashflow properties. The reason the return is low on this property is because it is a very old run down house on a very large property. I never bothered renovating as I had always planned on knocking down and build on it. I’ve always had a sentimental attachment to this house as I grew up next door, though should have sold during the boom.But I suppose more number crunching is required.
Thanks. Though I just wanted to see what other people would do in my situation. In terms of getting the finance for the investment properties, I’m virtually sitting on 80% equity, and am not a big fan of mortgage insurance.
Assad
