All Topics / General Property / renovate / build units

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  • Profile photo of rexgalrexgal
    Member
    @rexgal
    Join Date: 2003
    Post Count: 3
    October 13, 2003 - 2:21 am

    Hi everyone.

    I just put a deposit on a property that is within 5 mins of a large regional Vic city. The holding bond expires on Mon 20th Oct.

    The house and the land of 1100 sq.m is $160,000. A potential developer would be able to put 3 or 4 units with 2 or 3 bed rooms. And the building cost of each would be about $120,000. The sale price of a similar unit in the area is $200,000. The rental income from the exisitng house in the property is $120 a week. Similar houses (this one needs some cosmetic work) in the street brings $140-150 a week.

    This is my first attempt at property investing and I am interested to hear from anyone who is interested in purchasing this property or has any advice for me.[?] Is it not sensible to go ahead with this? Should I renovate before renting out? Etc Thanks.

    Profile photo of ErikaErika
    Member
    @erika
    Join Date: 2002
    Post Count: 151
    October 13, 2003 - 2:37 am

    Hi Rexgal
    As a newbie I think now is a good time to let you know that you will not receive advice on whether you should buy a specific property or not.Only you know if this fits your investment criteria. Maybe the first place to start is to look at what you want from property investing, do you want to be a developer and onsell when complete or a renovator or like many on this forum buy property for cashflow.
    Is this a good investment only you can answer that

    Erika

    Profile photo of rexgalrexgal
    Member
    @rexgal
    Join Date: 2003
    Post Count: 3
    October 13, 2003 - 2:44 am

    quote:

    Hi Rexgal
    As a newbie I think now is a good time to let you know that you will not receive advice on whether you should buy a specific property or not.Only you know if this fits your investment criteria. Maybe the first place to start is to look at what you want from property investing, do you want to be a developer and onsell when complete or a renovator or like many on this forum buy property for cashflow.
    Is this a good investment only you can answer that

    Erika

    Thanks Erika.
    RexGal.

    Profile photo of SlumLordSlumLord
    Member
    @slumlord
    Join Date: 2003
    Post Count: 51
    October 13, 2003 - 3:30 am

    If the numbers you put up hold true then I would build the units. If you don’t have the cash to do the deal find a partner and do it. OR get approved plans and onsell it to a builder.

    Wouldn’t hold it for rental, you can get that kind of return in more premium metro areas, would not settle for that return in a regional area.

    Slum Lord

    Profile photo of rexgalrexgal
    Member
    @rexgal
    Join Date: 2003
    Post Count: 3
    October 13, 2003 - 12:11 pm

    Thanks Slum Lord. I am thinking of letting go of this one. Financially I am not in a position to build at this stage and without knowing for certain that I will have a business partner to build with, I don’t want to hold on to this one.

    I’ll continue to look for a positive cash flow!!! I am new to property investing and I’m still learning… Appreciate your comments.

    RexGal

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