Still all tiny studios that will require larger deposits upfront. Don't love it. What is wrong with a 2 bedder further out for the same price?
do cosmetic reno then get a depreciation schedule done.

D

hi E Hammond,

Have you called a few builders just to ask about pricing? A few big builders (Metricon) are very approachable to get inital prices from and then you can call a few small builders from to get a clearer picture.

From what I read too it seems like you build two properties. Have you seen and studied the plans to make sure of what you are actually buying?

Building costs for things like townhouses can be anywhere from 180-220k and up depending on what is included. Many things are not included such as fly screens, landscaping, blinds, light fittings, boundary fences (which may need to be removed to allow trucks/excavator access). This will very quickly add up so get as clear a picture as you can.

Are working drawings included or have they been done. These are the second lot of drawings given to your builder which outline exact specs of materials measurements etc. These can cost as well to have drawn up so add that to the sale price.

As I understand it a duplex or 3 house block is worth a bit more strata titled when it comes to selling as you can sell them individually for more. Also this allows you an out by selling one if you think that you need to get out or if you are going to get a really high price etc.

Talk to your accountant about buying this the right way as you do not want to have to pay heaps of tax if you need to get out of it  and sell for whatever reason.

Please get all the figures and time frames as well as it may not have sold as there is not much or no profit in the deal from a development perspective. It may be ok as a one off buy/develop/hold. Building time will also cost you in holding costs for interest and if the rental amount has to be dropped to keep a tenant living on a building site. It may take anywhere from 6 up to 12 mths for actual construction time so calculate how much interest you will pay during this time.

If after all these calculations and questions and phone calls the deal stacks up then go for it. Most developers go for a 25-20% profit so if you come out at anything less than 15% run a mile and anything in between think very carefully about if it is worth it.

Good luck, I don't want to put you off because it is really great fun but there may be other projects that you can control a bit more and maybe make more money on.

D

Hehe! Maybe so every can gauge the nerves part….lol! My parents practically shoved me down the asle! "He'll take her? Done!" Grandchildren!!! Hooray!!  lol. I'm pretty sure that's why both my brothers came, so I didn't do a runner hahaha! Hey, I'm kidding!

D

Has Mt Eliza had its day? Or is it blue chip for that region? Will it always grow at a set percentage each year?  How is Frankston South for cash flow?

I think I need to buy a crystal ball, some residex reports and some henchmen for my evil property empire

You've picked 2 'nice suburbs'. Hows your numbers?

Probably should start a new thread……..speculation on areas.

D

I don't understand why so many big business HAVE to have offices in the center of major cities. Maybe they like big towers. Most employees have to commute in to these areas packing them full of people and full or cars. It must also waste so much time. They could get people to start an hour earlier rather than sitting in their cars!

 Hey Sonya picking up some good buys in NSW? I've seen some really cheap under 100k (didn't know you could still get something THAT cheap). I'm going to get out my reusable shopping bag and start putting properties in like they are apples! LOL!

D

A one hr commute to London is considered the norm.

I used to drive 1 hr to work and 1 hr home as that was the only job I could get and I was thankful for it!

Perth has had the right idea for a while. Build up the inner suburbs as there is no real infrastructure further out. Then as people have to move further out then build infrastructure.

 I was about 18-19 when I was at a party and a German exchange student said to me…..why don't Australian's build on all of this land (meaning back yards). In Germany we would build on this. To which I the very young thing said noway why would we? There is plenty of land in Oz. I like the birds on my back verandah and a big backyard.

10 yrs later…….

D

Hi,

Couple things about kids. They walk. So at anywhere from 10mths to 15 mths they will start to wander around. Near those stairs, near that brickwork that juts out just at the right height to hit their head on. the back yard suddenly shrinks from HUGE for you and your wife to NOT big enough for an exploring toddler.

We moved into a 3 bed unit (renting) when I was 5 mths preggas with our 1st child. We moved when he was 11mths as we had STAIRS! No backyard, 3 sets of stairs and we had heaps of space…….until we had kids.

Now we have 2 kids (hopefully but sadly probably the end) and we live in a 4 bed 2 bathroom house and the youngest is only 11 mths. Kids get everything in a house. You need a bigger car to fit the giant car seats in. Bigger car you get. They need a yard to play in right? You get a house with yard. You have a sibling for them, sibling wakes them up, separate bedroom right?

Hahaha it just goes on and on but is so fantastic and fun that you really don't care in the slightest that every dollar you get you spend on them and every minute you get you spend on them. Very fun!

I would advise renting the desired family house first to try before you buy especially if you are not quite sure. Having kids is nothing like you think it will be no matter how you picture it.  It would not be the best to buy something that you think is right only to have to move later and try and rent it out quickly or have to stay on and suffer. And trust me and your wife, you will suffer if it isn't right

Enjoy it, kids don't stay small for long. When they can walk and talk they start telling you what to do! (He is only 3!)

D