As a three bedroom townhouse naturally it will be targetting either of the following groups.
– Young family
– Professional couple
– Retirees downsizing

As you have mentioned above a large bedroom is 3.6 x 3.6. Well what would a large downstairs living area be deemed to be a large/spaciouse area?

Cheers,

Hi Luke,

The property is in inner city Melbourne approx 8-10 kms from the cbd. The main goal is for capital appreciation however a re development will increase the yield and my affordability to service the loan.

It seems as though on average in the inner city suburbs rental yields are around 3% for a house. What would be classified a high yield?

I know this question might be hard but I am just looking for peoples opinion on what yield they try to target post a development.

Hi fword,

Thanks for your response.

The above scenario is for investment purposes. The prices will be similare however the yield in craigieburn will be higher as it will be a 3 bedroom house rented.

Bundoora ticks all the boxes in regards to amenities ( 2 unis, tram, ring road, neighbouring suburbs reservoir, watsonia)

Craigieburn however is growin extremely rapidly due to first home buyers. There is a new shopping complex which they have plans to build also.

Is there any other information I should be looking at to help with my decision?

Hi Guys,

Thanks for your response.

Unfortunetly, I dont understand the reason why I would have to pay any cgt?

Lets say I lived in a home for 2 years with a large block and then decided I didnt need half of it. If i subdivided and sold I thought I would not need to pay any cgt for the period in which I owned that portion as part of my PPOR.

If I held the subdivided block and then built on it and used the proprty as an investment then the cgt would be calculated from that date or close to?

Can shed some more light on the above.

Cheers,

Mav

Hi Guys,

Thanks for the feedback. I do agree with you both.

I would be looking at renovating this just to bring it to a more modern and comfortable place to live. It is barely livable at the moment. I just think that these period homes look really good with the decorations and ornaments, it's what gives them there character and value. Without this I think they loose half of there appeal (similar to the pic above). Within saying that if I was going to renovate and add things to the property which were not consistent with the style of home or era it was built, I think it will look stupid. I would assume that most people purchasing a period home like this would like to know what it is and possibly be aware of the features it should or should not have. I might be wrong though. I would be interested to know what you guys think.

Cheers,

Mav

Hi Guys,

Thanks for the response!

I am currently looking through the case studies. Some good outcomes. I like the fact many of them are based in Melbourne and I am familiar with the suburbs.

Cheers,

Mav

Hi Viv,

Do you think you will get a response from your friend attending this weekend? The feedback would be fantastic.

Seems as though not many people have done it already. I think this is only the second year they have been running.

Hi Viv and Jess,

Thanks for the response.

I have also watched the 2 hour DVD which was very informative. The workshop sounds really great I am just finding it hard to justify at this stage. I am sure it will be informative but will it be worth $5,000? I am worried that a lot of the things learnt are things I have considered or would have figured out myself anyways.

I would love to hear the feedback from your friend. As I also am thinking about going to the Melbourne one. Hopefully you will know soon how it went. The Melbourne one is in June 12th.

Jess – I have sent you a message in your inbox

Anyone else got any feedback on the workshop??

Thanks in advance.

Hi Terry,

Thanks for the reply.

Lets say for example after the first 1 or 2 as my PPOR I then decide to continually buy renovate and sell (2 properties a year). Obviously this will then not be classified as my PPOR.  Will I need to pay GST on my profit as it is deemed to be operating a business?

If so how does this work and is there anyway of reducing/ avoiding this?

You help is very much appreciated.

Thanks mr501

I appreciate your help.

Just to confirm so when a property is deemed to be your principal place of residence, for example after 6 months, then you can sell tax free regardless. 12 months has nothing to do with this, it only relates to investment property to get a 50% discoutn on CGT?

I would be very interested to read both cases to compare differences. Do you know how I might be able to obtain these?

I will be living in the property while renovating so I should be able to tick most of the boxes above however I would obviously like to keep the time frame as short as possible.

Thanks again!